2022

NXP CORPORATESUSTAINABILITYREPORTwww.nxp.com

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TABLE OF CONTENTSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESINTRODUCTION.............................................................................3

Investing in Future Talent........................................................75

A Letter From Our CEO..............................................................4

Focusing on Team-Member Retention...................................78

An ESG Message From Our Chief Sustainability Officer.............6

Health and Safety...................................................................79

About This Report.......................................................................8

Human Rights.........................................................................852022 ESG HIGHLIGHTS..................................................................9

Giving Back to Our Communities...........................................91

OUR BUSINESS.............................................................................11

Team-Member Demographics..............................................101

Overview.................................................................................12

ENVIRONMENT..........................................................................115

Stakeholder Engagement.......................................................15

Overview...............................................................................116

Total Quality............................................................................20

Management........................................................................117

ECONOMY....................................................................................21

Emissions..............................................................................118

Product Solutions Contributing to Sustainability....................22

Energy...................................................................................137

Green Innovation Bond..........................................................24

Water....................................................................................144

Taxation...................................................................................26

Waste....................................................................................150

Enterprise Risk Management..................................................28

Packaging.............................................................................155

Business Continuity.................................................................29

Hazardous Chemicals and Materials.....................................156

GOVERNANCE.............................................................................31

SUPPLIER ENGAGEMENT.........................................................158

Overview.................................................................................32

Overview...............................................................................159

Board of Directors...................................................................33

Supplier Code of Conduct....................................................161

Ethics......................................................................................37

Supply-Chain Management..................................................162

Anti-Bribery and Corruption...................................................39

PRODUCT STEWARDSHIP.........................................................175

Privacy.....................................................................................40

Environmental Product Compliance.....................................176

Cybersecurity..........................................................................41

Responsible Mineral Sourcing..............................................179

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE...................42

APPENDICES...............................................................................180

Overview.................................................................................43

A: ESG Performance.............................................................181

Approach to ESG....................................................................44

B: GRI Index..........................................................................203

ESG Goals...............................................................................46

C: SASB Index.......................................................................212

ESG Governance....................................................................50

D: TCFD Index......................................................................214

OUR TEAM MEMBERS.................................................................51

E: UNGC...............................................................................220

Overview.................................................................................52

F: Sustainability Policy..........................................................221

Driving Team-Member Engagement......................................54

G: Scope 1 Chemical List of Emissions.................................222

Building Thought Leadership.................................................58

H: Top 100 Supplier List........................................................226

Embracing Diversity, Equality, and Inclusion..........................62

I: Acronyms and Abbreviations.............................................228

Providing Competitive and Fair Compensation and Benefits.69

FORWARD-LOOKING STATEMENTS........................................233

Enabling Talent Development and Growth Opportunities.....712

INTRODUCTION
3

A LETTER FROM OUR CEOAt NXP, our core values of innovation, expertise, collaboration, ownership, andgrowth stand on a foundation of trust and respect. These principles guide us ineverything we do; they define our culture and inform our way of working.

INTRODUCTION
A Letter From Our CEO
An ESG Message
About This Report

Our collective and individual expertise differentiates us in the marketplace, andenables us to create innovative solutions to advance a more sustainable world.

2022 ESG HIGHLIGHTS

To progress on our sustainability journey, we work collaboratively across thecompany and with our customers, suppliers, other partners, and stakeholders.

OUR BUSINESS

We take ownership and hold ourselves accountable to our environmental, social,and governance goals, including achieving carbon neutrality by 2035. As further
demonstration of our commitment, we incorporated sustainability goals into our
Annual Incentive Plan.

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESKURT SIEVERS

President and CEO,NXP Semiconductors

What’s more, we recognize that, to leverage our team’s passion and winning spirit as
we work toward our goals, we must ensure meaningful opportunities for growth andsustainable development.
From automotive to industrial, smart home to smart city, mobile to communications
infrastructure, we develop innovative solutions to address major global needs.
Below are just a few examples of solutions that NXP announced in 2022.

2022 SOLUTIONSMCX portfolio of
microcontrollers, which advanceinnovation in smart homes,
factories and cities and across
many emerging industrial and IoTedge applications

S32Z and S32E processorfamilies, which are critical to thenext generation of safer and more
efficient vehicles

S32K39 series of automotive
microcontrollers, which are
optimized for electric vehicle (EV)control applications

RW612 and K32W148 devices,which are part of NXP’s expanding
portfolio of end-to-end Matter
solutions, and help makesmart homes more efficientand sustainable

4A LETTER FROM OUR CEO
INTRODUCTION
A Letter From Our CEO

In addition to our breakthrough technologies, we remain constant in our commitment to sustainability and to making measurable year-on-year progress in many other areas as well. This dedication isreflected in our most recent MSCI ESG rating – upgraded from AA to AAA and largely driven by improvements in our corporate governance and management of conflict minerals – and in the many
achievements of our team members. Here are just a few examples:

An ESG Message
About This Report

2022 ACCOMPLISHMENTS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

Appointments – In early 2022, to further our ESG mission and underscore NXP’scommitment to advancing a better, more sustainable world, we created a Chief
Sustainability Officer role and named Jennifer Wuamett to that position in an extension ofher existing responsibilities as General Counsel and ESG Management Board Chair.

Human Rights – Our new Human Rights Policy reaffirms our steadfast commitment to allinternational labor and human-rights laws and norms, along with the business practices
and technologies that contribute to protecting and respecting human rights worldwide.

Green Innovation Bond – In May 2022, we issued a third Green Innovation Bond for $1
billion USD, allowing the broader community to invest in our sustainability activities. Our
2022 Green Innovation Bond Report shares how we applied the proceeds and, where
feasible, provides insight regarding the potential impact on global sustainability.

Health and Safety – Providing our team members with a safe and healthy work
environment remains a top priority at NXP. In 2022, we conducted a global team-member
safety survey, a follow-up to our 2019 survey, to seek feedback on opportunities for
improvement. Overall, 94% of respondents said that safety concerns are a high priority
for NXP, and 98% of respondents felt that safety starts with them. We will continue toaddress individual site opportunities based on the results. We maintained our low injury
rate of 0.10 (per 100 employees/working hours), keeping us well below the semiconductor
industry average.

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPDiversity, Equality, and Inclusion – To drive results and progress towards achieving our
2025 representation goals, we grew our executive women population by 3 percentage
points over the prior year, and women in R&D roles increased by 2 percentage points in
2022, a year in which we grew our overall population by 11%. We also announced thecreation of the NXP Diversity Council.

Carbon Footprint – In 2022, we continued our efforts to limit the emission of greenhousegases (GHGs), and succeeded in reducing our normalized carbon footprint (Scope 1 & 2
emissions) by 9% compared to 2021. We also increased our renewable electricity usage
from 31% in 2021 to 35% in 2022.

APPENDICES

Looking Ahead
Innovation is an integral part of improving every aspectof daily life, whether it’s how we manage our health andwellness, how we access goods, services, and information,or how we work and play.

That’s why I’m proud that at NXP, we bring together brightminds to create breakthrough technologies that make theconnected world better, safer, and more secure.

We look forward to creating new possibilities and building
innovative solutions that advance society and contribute to
the sustainable future of our planet.

5

AN ESG MESSAGE FROM OUR CHIEFSUSTAINABILITY OFFICER
NXP is committed to enabling a better, safer, more secure,and more sustainable world through innovation. Our
environmental, social, and governance (ESG) mission andstrategy are dedicated to continuous improvement – fromdesigning and manufacturing technology that positively
impacts the planet and society, to achieving carbon neutrality
in our operations, increasing the number of women globallyand underrepresented minorities in the United States, andpreventing human rights abuses throughout our supply chain.

INTRODUCTION
A Letter From Our CEO
An ESG Message
About This Report

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESJENNIFER WUAMETTNXP Executive Vice President,
General Counsel, and Chief
Sustainability Officer

Last year we announced our mid- and long-term ESG goals,
including reducing our carbon footprint 35% by 2027 andbecoming a carbon-neutral company by 2035. In March, toaccomplish our ambitions for reducing carbon emissions,
we signed on to the Science Based Targets initiative (SBTi)
as part of our commitment to fight climate change and limit
global warming to 1.5 °C. Also in 2022, we developed acomprehensive roadmap for carbon reduction and exceeded
our goal of limiting our carbon emissions to less than 1,250
kTons of CO2e and maintaining our average company-wide useof renewable electricity at greater than 29%. We ended 2022
at 1,099 kTons of CO2e and increased our renewable electricity
usage to 35%.
NXP considers water a limited and scarce resource. We areworking to reduce our impact on water supplies by increasing
our water-recycling rates. In 2022, we created an updated
roadmap to take this recycling journey to the next level and lay
the groundwork for achieving our longer-term goal of reachinga water recycling rate of 60% by 2027.
Contributing to our roadmaps for carbon reduction and water
recycling were the hundreds of project proposals we generated
from across our Global Operations Team in 2022.

6

AN ESG MESSAGE FROM OUR CHIEF SUSTAINABILITY OFFICER
Other ways we continued our ESG progress in 2022 include:
INTRODUCTION
A Letter From Our CEO
An ESG Message
About This Report2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENTESG Oversight and Governance

Sustainability is integral to NXP’s long-term businessstrategy, and our Board of Directors has ultimate
oversight responsibility for ESG matters. Our ESG
Management Board – comprised of several of ourCEO’s direct reports – oversees the execution of our
ESG strategy and ensures appropriate resourcing.
Additionally, in 2022, we announced our underlying
ESG program structure, built around seven pillars(People, Sustainable Manufacturing, SupplierManagement, Strategic Business Model, Reporting,
Brand and Reputation, and Governance), along withthe responsible owners for each of these areas andsupporting project leaders. As further demonstration of
our commitment, we’ve also incorporated sustainability
goals into our Annual Incentive Plan.

Shareholder Engagement

When looking for sound investments, today’s investors go
beyond baseline financial factors to consider sustainable
and ethical business practices, too. We believe that
regular engagement with our shareholders helps themunderstand their investment in NXP and helps us identify
and respond to their questions and concerns. In 2022,
in addition to regular investor engagements with ourCEO, CFO, and other executives, we facilitated ongoing
dialogue between the governance and stewardshipgroups of our major shareholders and key members of
our Board of Directors. These discussions focused on
management oversight, corporate governance, humancapital management, and environmental, social, andgovernance (ESG) topics. As a result, we gained valuable
feedback and answered important shareholder questions
on governance topics and other ESG-related issues.

SUPPLIER ENGAGEMENTInternal Engagement

Members of NXP’s “No eXtra Planet” Employee
Resource Group (ERG) are environmental-protection
enthusiasts, concerned about the ongoing climate andbiodiversity crisis. The group creates opportunities forteam members across the globe to actively engage inand support NXP’s journey to climate neutrality throughongoing dialogue and grassroot actions.
In 2022, as part of supporting NXP team-member growthand development, the leaders and core members of
the ERG participated in a two-day workshop on leadingclimate initiatives to gain skills for driving positive change
toward a more sustainable future through innovation.
No eXtra Planet and the Sustainability Office also
spearheaded a multitude of Earth Day activities aroundthe world as part of their initiatives to act locally,
think globally.

PRODUCT STEWARDSHIPAPPENDICES

Looking Ahead
We are committed to our ESG journey and dedicated to driving further advancements.
We will continue to regularly review our progress towards our ESG goals to ensure weare taking appropriate actions as we focus on short-term objectives and pursue ourlonger-term strategies.

We are passionate about enabling a better, safer, more secure world, and are excited tocontinue working with our partners and stakeholders to advance a more sustainable future!

7

ABOUT THIS REPORTINTRODUCTION
A Letter From Our CEO
An ESG Message
About This Report

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

This 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 bya 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) andthe Task Force on Climate-Related Financial
Disclosures (TCFD). We report annually with
our Communication on Progress to the United
Nations Global Compact and align with theUnited Nations Sustainable Development
Goals (SDGs).

SCOPEThis report covers our worldwide locations andjoint ventures for which we have management
control. Environmental data includes owned,
controlled, and leased manufacturing sites,
which accounts for the majority of ourenvironmental footprint.
Our reporting reflects the current size andscope of NXP’s business lines, which have
evolved over the years through a numberof significant mergers, acquisitions, anddivestments:

2015

Data presented in this Report covers the 2022
calendar year (January 1 to December 31),
unless otherwise stated.

• Sold the bipolar business that included the
Jilin China manufacturing site

ADDITIONAL DISCLOSURES• Merged NXP with Freescale Semiconductor

We provide additional ESG information inthree documents: our Form 10-K, our Proxy
Statement, and our Statutory Annual Report– which is prepared in accordance with Dutch
law and the International Finance ReportingStandards. These three documents areavailable on our Investor Relations website.

ESG FOCUS AREAS

In preparing this Report, we endeavor to
include a comprehensive set of topics that are
significant and relevant to our company andour stakeholders. In 2021, to understand our
stakeholders better, we conducted a rigorous
online survey, focusing on ESG topics, ofover 250 internal and external stakeholders,
including shareholders, customers, suppliers,
and industry associations. The survey poseda total of 30 ESG- and economy-related
questions. In addition to the survey, we also
reviewed several of our peer’s sustainability
disclosures, and included current reporting
frameworks, applicable standards and rating
agencies, such as CDP, GRI, SASB, MSCI, ISS
ESG, and Sustainalytics. This comprehensive
stakeholder assessment yielded the current
and emerging focus areas shown below.

The results from the 2021 stakeholder assessment continue to inform our reporting. In 2022, weincorporated feedback from various stakeholder engagements from throughout the year, but
our list of current focus areas remains unchanged since 2021. In the coming years, we plan to
conduct additional assessments to determine topic materiality.

ENVIRONMENTAL

SOCIAL

GOVERNANCE

Current Focus Areas
Environmental Impact
and Climate Change

Health and Safety

Cybersecurity

Human Rights

Ethics2019

Non-Discrimination

Responsible Supply
Chain• Acquired Marvell’s Wi-Fi and Bluetooth
Connectivity Assets

Emerging Focus Areas• Divested the NXP RF division

2017• Divested the NXP Standard
Products BusinessContact 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, ourSustainability Stories magazine, or you can contact our team directly at CSR@nxp.com.

Carbon Neutrality

Diversity, Equality,
and Inclusion

Product Sustainability82022 ESG HIGHLIGHTSACCOMPLISHMENTS AND AWARDS DEMONSTRATINGCONTINUOUS IMPROVEMENT

2022 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) HIGHLIGHTSENVIRONMENTALINTRODUCTION

SOCIAL

GOVERNANCE AND ECONOMIC IMPACT

2022 ESG HIGHLIGHTS

97%

Developed Roadmaps for Carbon
Neutrality and Water Recycling

OUR BUSINESSFavorability from Winning
Culture Survey Respondents

ECONOMYAAA

MSCI ESG Rating

GOVERNANCE

9%

ESG

Decrease inNormalized
Scope 1 &2 Emissions
from 2021

OUR TEAM MEMBERSENVIRONMENT2+

PercentagePoint Increaseof Women Team
Members in R&D
and Executive
Positions35%

Renewable
Electricity Use

SUPPLIER ENGAGEMENT

Joined the

PRODUCT STEWARDSHIPAPPENDICES

Semiconductor
ClimateConsortium
as a Founding
Member

83%
of Waste
Recycled48%

of Wastewater
Recycled

11%

Decrease in
Hazardous
Waste

2





Of US New
College Graduate
Hires, 35%
were Womenand 66% were
Underrepresented
Minorities

Maintained a
low Total Case
Incident Rate
(TCIR) of

0.10

Percentage-Point
Increase of US
Underrepresented
Minority
Representation




19

Employer Awards
and Recognitions
from 10 Countries
and Regions

Published NXP’s
First Extended

Minerals
ReportingTemplate (EMRT)



$1B
USD

Green
Innovation
Bond

Added aSustainability
Component
to our Short-Term Annual
Incentive Plan

for All Employees

99%





of Suppliers Signed
the NXP Supplier
Code of Conduct
Conformity
Statement

Published NXP’s
First Human

Rights Policy

King Willem I
Award For

Sustainable
Entrepreneurship

KLM Royal
Dutch Airlines

Sustainability
Award

10

OUR BUSINESSADVANCING A BETTER, SAFER,
AND MORE SUSTAINABLE WORLDOVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSNXP 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.

OUR BUSINESS

Advancing a Better, Safer, and More Sustainable World

Overview
Stakeholder Engagement

NXP is pushing boundaries and building solutions thatenhance the capabilities of people, organizations, and theworld at large. We are committed to keeping our customers
ahead of the competition and helping them prepare
for change. We design purpose-built, rigorously tested
technologies that enable devices to sense, think, connect,and act intelligently to improve people’s daily lives.

Total Quality

ECONOMY
GOVERNANCE

We believe that technology can help us get things done
faster – in ways that are easier, more reliable, safer, and use
less energy – and can create opportunities for more people toparticipate in business, culture, and community.
Whether we reduce the amount of energy consumed by smart
devices, extend EV battery ranges, or make 5G more efficient,
our collective efforts contribute to a more sustainable future.
This winning strategy enables us to capture growth
opportunities in the end markets we focus on: Automotive,
Industrial and IoT, Mobile, and Communications Infrastructure.

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT+60

PRODUCT STEWARDSHIP

Years of
Combined
Experience andExpertise

APPENDICES

1~34,5001
Team Members+30

Countries
Worldwide$13.21 B
USD
2022
Revenue~9,500Patent Families
Owned

On December 31, 2022, we had approximately 34,500 employees, including approximately 1,500 employees in our joint venture.
12

OVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSAUTOMOTIVE

We provide the foundation for vehicles that can sense, think, connect, andact 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 thetransition to electric driving.

NXP’s Unrivaled Technology Portfolio for the Secure Edge
SENSE

THINK

CONNECT

ACT

Everything
Aware

Everything
Smart

Everything
Connected

Everything
Efficient

Overview
Stakeholder Engagement
Total Quality

INDUSTRIAL AND IoTECONOMY
GOVERNANCE
ESG

We power optimal performance across industries by automating intelligenceand increasing security at the edge of the network. Connected devices andadvanced manufacturing demand flexible, scalable, and sustainable solutions.
Our broad range of secure, connected solutions simplify edge processing
and protect interactions with the cloud. We also enable machine learning,
so devices can be equipped to sense, think, and act.

OUR TEAM MEMBERS

MOBILEENVIRONMENT
SUPPLIER ENGAGEMENT

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.

We support today’s on-the-go lifestyle with innovative solutions, such as themobile wallet, so consumers can securely connect their devices to the world
around them. With technologies like secure elements, end-to-end services,and Ultra-Wideband (UWB) technology, we enhance mobility while
ensuring privacy.

PRODUCT STEWARDSHIPAPPENDICESCOMMUNICATIONS INFRASTRUCTURE

We deliver real-time responsiveness at the speed of 5G, whenever andwherever data happens. Our solutions power the 5G-connected, edgecomputing infrastructure that supports adaptive communication networks
worldwide, leveraging differentiated processing and RF power technologies.

13

OVERVIEW
INTRODUCTION

WORLDWIDE MANUFACTURING SITE LOCATIONS

2022 ESG HIGHLIGHTSOUR BUSINESS

ATMCAustinCopper Technologies

Overview
Stakeholder Engagement
Total Quality

NijmegenAluminium Technologies

TianjinOak Hill
AustinAluminium Technologies

ECONOMY
GOVERNANCE
ESG

Kaohsiung

OUR TEAM MEMBERS

Chandler, GaN
Chandler
Aluminium Technologies

ENVIRONMENT

Bangkok

SUPPLIER ENGAGEMENT

SSMC2Singapore
Aluminium Technologies

PRODUCT STEWARDSHIPAPPENDICES

Wafer Manufacturing Sites
Assembly and Test Sites

2

Kuala Lumpur

SSMC is a Joint Venture
14

STAKEHOLDER ENGAGEMENTINTRODUCTION

Stakeholder feedback is an important part of our environmental, social, and governance (ESG) strategy, helping us evolve ourprocesses and culture while also guiding product development.

2022 ESG HIGHLIGHTSINTERNAL STAKEHOLDER ENGAGEMENTOUR BUSINESS
Overview
Stakeholder Engagement
Total Quality

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPWe share our progress with our teams around the world tofoster active engagement with and adoption of our ESG
activities. We also recognize that sustainability and green
engineering are important topics for our current and future
team members. We encourage the support of Employee
Resource Groups (ERGs) to further the Corporate efforts
through local activities. There are ten ERGs to date that
focus on a variety of topics, including the Black Achievement& Leadership Team (BALT), Women in NXP (WiN), and No
eXtra Planet, which uses its activities and communications toencourage participation in environmental events and activities
such as world Earth Day, green mobility, and eco-friendly
business practices.
We communicate with our team members through numerous
platforms and channels, including town halls, meetings, ourintranet and internet sites, internal messages, social media,
blog posts, and newsletters that report on NXP’s sustainability
efforts and other key business activities. In 2022, we continued
to publish NXP’s Sustainability Stories magazine, whichchronicles our journey toward making the world smarter andmore sustainable.

EXTERNAL STAKEHOLDER ENGAGEMENT

Throughout the year, we engage formally and informally with
our stakeholders to explore ESG focus areas, along with trends
and developments relevant to our industry. We endeavor toconsider the views of our stakeholders, by acknowledging their
viewpoints and demonstrating respect for our shared priorities,
when making business decisions. We believe this approachreflects our commitment to transparency and accountability,
and ultimately contributes to long-term value.
We communicate NXP’s sustainability efforts and otherkey business activities through numerous platforms anddigital channels, including events, customer meetings, ourwebsite, social media, blog posts, and newsletters. In 2022,
we published two new issues of our Sustainability Stories
magazine, covering a variety of topics, including advancements
in automotive innovation, our Diversity, Equality, and Inclusion(DE&I) efforts, and employee initiatives.

We conduct confidential team-member pulse surveys togauge how our team members view the company’s visionand strategy, the work environment, work relationships,
and job satisfaction.

APPENDICES

15

STAKEHOLDER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS
Overview
Stakeholder Engagement

The table below gives examples of how we engaged with internal and external stakeholders in 2022. Frequency and type of engagement varies by stakeholder group and is
tailored to stakeholder requirements.
2022 Sustainability Stakeholder Engagement			
Stakeholder

Engagement

Feedback

Outcomes and Follow-Up

SEMI Semiconductor Climate Consortium(SCC)

Joined as a founding member.

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

Leveraged expertise and resources in various
portions of the supply chain to continue toexpand NXP’s capability to positively impact
our carbon footprint. The SCC expects toannounce a governing committee and several
working groups in early 2023.

Shareholders

In 2022, our Chairman and otherrepresentatives from our Board of Directors,
our Management Team, Investor Relations,
Corporate Sustainability, and other internalgroups met to discuss ESG issues with ourshareholders.

Inquiries regarding our carbon-neutrality
programs, our commitment to the Science
Based Targets initiative (SBTi), the ability toadequately 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, andaligning ESG goals with compensation.

Expanded the Nominating and GovernanceCommittee, and renamed it the Nominating
Governance, and Sustainability Committee,
to emphasize committee oversight for our
Sustainability Program, its policies, and goals.
In 2022, the Board of Directors approved
our mid- and longer-term ESG goals and thealignment of our 2022 Annual Incentive Plan
(AIP) with the ESG scorecard. Committed
to SBTi targets in 2022. Updated supplierquestionnaires to determine NXP's upstream
Scope 3 emissions and began to prepare for
emerging regulatory requirements.
This Report includes additional disclosures on
DE&I.

2022 Winning Culture Survey results werepositive in most areas, including favorability,
collaboration and accountability, and showed
team members feel engaged, have pride in thecompany, and believe that NXP is a great place
to work. Areas of focus included talent growthand development and employee well-being.

NXP introduced new Talent and Development
programs and Global Recharge Days. To view
specific details about these programs, referto the "Driving Team-Member Engagement"
section in this year’s report.

Total Quality

ECONOMY
GOVERNANCE
ESG

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

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESTeam Members

Continued our commitment to team-member
engagement by using our annual Winning
Culture Survey to ask a select group of teammembers, from around the world, about avariety of factors.

16

STAKEHOLDER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTS

2022 Sustainability Stakeholder Engagement			
Stakeholder

Engagement

Feedback

Outcomes and Follow-Up

Suppliers

Continued to conduct onsite and remotesocial-responsibility audits, and collaborated
with industry peers through the Responsible
Business Alliance Validated Assessment
Program (VAP). Increased social-responsibility
training for suppliers.

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

Supplier Corrective Action Plans are 88%
closed.

Participated in conferences, customer productlaunches, and trade shows, as well as regularbusiness-review meetings. Conducted acustomer-satisfaction survey, using the Net
Promoter Score method, and performed aseparate customer survey focused on ESG
requirements. Hosted education and training
events. Responded to questions and requests
relating to compliance, legal, and regulatory
issues, as well as general sustainability
inquiries.

Alignment with customer priorities for
emerging regulatory requirements.
Need for more detailed sustainability reportingwith emphasis on climate change and thecarbon footprint of products.

Published our mid-term and long-term ESG/
Sustainability goals and shared them with ourcustomers.

Responsible Business Alliance (RBA)

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

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

Responsible Labor Initiative (RLI)

Attended monthly workgroup meetings and, as Guidance on definition of fees, gap analysis
a Board delegate, attended quarterly Steering on various guidance standards, labor-agent
Committee meetings.
training, and mapping the labor-agent
recruiting corridor.

OUR BUSINESS
Overview
Stakeholder Engagement
Total Quality

Customers

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

Continued to work on carbon neutrality
roadmaps including the increase of renewableelectricity use.
Started working on future Scope 3 reportingand setting up systems to report on productcarbon foot-printing.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

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

Worked with the RBA to develop a tool that will
help us map our supply chain beyond Tier 1.
Provided input to a gap analysis between the
RBA's due-diligence schemes and proposed
human-rights due-diligence regulation in
the EU and the US. Participated in strategy
sessions to define the RBA's approach toclimate change and environmental issues in the
supply chain.
Updated our Auditable Standards per the
RLI's revised definition of fees. Shared NXPpractices at various forums organized by the
RLI.

17

STAKEHOLDER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTS

2022 Sustainability Stakeholder Engagement			
Stakeholder

Engagement

Feedback

Outcomes and Follow-Up

Responsible Mineral Initiative (RMI)

Attended annual member meeting, monthly
plenary meetings, smelter engagement
team meetings, and various conference callsorganized by the RMI.

Tools and resources to make sustainabledecisions about mineral sourcing.

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

Global Business Initiative (GBI)

Attended two peer-learning meetings formembers, various ad hoc meetings, andconference calls organized by the GBI.
Promoted NXP's work on access to remedy forvulnerable migrant workers.

Multi-industry human-rights best practices
for businesses.

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

European Partnership for Responsible
Minerals (EPRM)

Participated in Governance Board meetings,
bi-annual member meetings, conferences,and outreach meetings with governments andauthorities.

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

Created knowledge platform on supply-chaindue-diligence regarding responsible mineralsourcing, and launched a Due-Diligence Checktool.

OUR BUSINESS
Overview
Stakeholder Engagement
Total Quality

ECONOMY
GOVERNANCE
ESG

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

OUR TEAM MEMBERSENVIRONMENTUN Global Compact (UNGC)

Participated in Annual Communication
on Progress.

Increased due diligence of environmental risks
within the supply chain.

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

World Semiconductor Council (WSC)

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

Best practices for responsible sourcing ofminerals and Health and Safety practices.

Applying best practices to advance our Healthand Safety programs. Annual collectionof Health and Safety data from member
companies. Kept track of legal developments
and aligned with other industry initiatives.
Published an update in the WSC jointstatement.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

18

STAKEHOLDER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTS

2022 Sustainability Stakeholder Engagement			
Stakeholder

Engagement

European Semiconductor Industry
Association (ESIA)

Chaired ESIA Responsible Sourcing workgroup, Shared insights on various EU initiatives andactively participated in several Environment,
proposed regulations.
Safety, and Health workgroups, the EU
Taxonomy workgroup, and the EU HumanRights Due-Diligence workgroup.

Participated in several consultations from the
EU Commission on new regulations concerning
sustainability and human rights. Completed
business-impact assessments for proposed
regulations.

Cumulus

Conducted due-diligence exercises relating
to migrant workers and broker supply chain of
selected suppliers.

Increased transparency to the migrant-worker
supply chain.

Used the Cumulus database's mapping
capabilities to better understand thecomplexities of multi-tiered labor recruitmentin the supply chain, and how to reduce the risks
associated with this type of recruitment.

Verité

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

Continuous-improvement opportunities forStrengthening supply-chain compliance andsupply-chain compliance and capacity-building. supplier capacity-building, and advancing
NXP’s Auditable Standards for Social
Responsibility.

OUR BUSINESS
Overview
Stakeholder Engagement
Total Quality

ECONOMY
GOVERNANCE
ESG

Feedback

Outcomes and Follow-Up

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

19

TOTAL QUALITYINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS
Overview
Stakeholder Engagement

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

TOTAL QUALITY MINDSET

Total Quality

First–time–right development, designs, and qualifications
ECONOMY
GOVERNANCE

Deliver zero defects to our customers

ESG
OUR TEAM MEMBERS

Provide flawless customer support

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

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 eliminating quality excursions, improving our responsiveness to customers,
lowering our quality incident rate, and enhancing our quality standards. We recognizethat incorporating these objectives enables NXP to use our quality and reliability to drive
corporate growth. Ultimately, our goal is to exceed customer expectations.

20

ECONOMYINNOVATING TO SAVE ENERGY
AND IMPROVE HOW WE LIVEPRODUCT SOLUTIONS CONTRIBUTING TO SUSTAINABILITYINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
Product Solutions
Green Innovation Bond
TaxationEnterprise Risk Management
Business Continuity

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESAt the core of our solutions is our commitment to our global
community. We understand that smart and innovativetechnologies 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
to food security.
This section highlights some of the ways we’ve addressed
these global needs, by introducing innovations across
key markets.

AUTOMOTIVE – CONNECTEDEXPERIENCE; USING LESS AND
SAVING MORE

Electric vehicles (EVs) have become a majorpart of the transition to greener mobility.
Efficiency is a vital part of optimizing EV
applications, such as battery management, power conversion,and distribution, because it helps prolong the useful lifetime of
EV components.
Our EV components are used throughout the electric
powertrain, and our connected EV system solutions — which
include the GreenBox real-time development platform and the
Goldbox vehicle network reference design — put carmakers
on the fast track to building greener innovations. Our EV
solutions help improve energy management, extend range,
add efficiency, and, by enabling seamless connectivity andsafety-critical software updates delivered directly to the vehicle,
help keep both the car and the driver safe.

SMART HOME – ENABLING LITTLE
ACTIONS FOR BIG IMPACTS

In 2022, we introduced Ultra Wideband (UWB)
radar for presence detection. In smart homes,
presence detection lets light, sound, andother 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 our i.MX 8M Plus microprocessors, canhelp save energy in other, unexpected ways, too. Our smart
refrigerator system, for example, can track the freshness offruits, vegetables, and other perishables. That helps reducefood waste, and makes it easier for households to save on
groceries and send less unused food to land-fills. Extend that
benefit across entire communities, and there’s more foodavailable for emergencies and humanitarian purposes, and lessenergy used to produce and deliver food overall.

SMART CITY – FOCUSING
ON EFFICIENCYMIFARE 2GO brings mobile ticketing to thebusiest cities in the world, making it moreconvenient to use public transport. WithMIFARE 2GO, transit agencies benefit fromreduced cash handling, decreased card lifecycle management(less paper and plastic), and lower infrastructure costs, while
offering time savings for passengers.
At the edge of the network, in the Internet of Things (IoT), oursustainable technologies help promote energy efficiency. Our
Green IoT innovation enables smart farming, so it takes lessenergy to grow a larger quantity of quality products. What’smore, to make logistics more environmentally friendly, we’reusing our expertise in mobile robotics to help create lowpower industrial drones and rovers that can be used for rapid
response and zero-contact delivery.

22

PRODUCT SOLUTIONS CONTRIBUTING TO SUSTAINABILITY
INDUSTRIAL – BRINGING THE HEALTH OF PEOPLE AND MACHINERYTO THE FOREFRONTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
Product Solutions
Green Innovation Bond

Agriculture, raw materials, manufacturing, energy grids, supply chains – in every industrial
sector, significant resources are dedicated to the creation and maintenance of mission-criticalapplications. We believe predictive maintenance, which helps keep industrial processes up andrunning, is an important part of using those resources 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.
A growing number of our solutions are integrated into medical products that make healthy living moreachievable. Whether it’s in a medical facility or at home, NXP-enabled monitoring systems provide accurate status
and alerts, which can help save lives by delivering remote diagnostics and prompting earlier action and treatment.

Taxation

MOBILE – ENABLING SMART WEARABLE TECHNOLOGYEnterprise Risk Management

Consumers around the world are increasingly comfortable with wearable devices, and are using
these devices to track and monitor their health and well-being. Technology needs to keep pacewith 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.

Business Continuity

GOVERNANCEENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPWe know first-hand the power of bringing together bright minds toaddress the challenges we face.
We experience it every day as a company, on our journey toward asmarter, safer and more sustainable world. We also know that, given
the platform, our communities are likely to join us on that journey.
Our annual HoverGames Challenge is a virtual coding and hardware
challenge, held over several months, to address some of society’s
biggest challenges, including disaster management, health crises,
environmental protection, and wildlife preservation. Each editionis unique and has its own rules and judging criteria. In 2022-23,
the challenge explores how drones and rovers can help achieve asustainable food ecosystem. Find out more about HoverGames here.

COMMUNICATIONS INFRASTRUCTURE – CONNECTING THE DOTS WITHDATA CENTER PRODUCTIVITYESG
OUR TEAM MEMBERS

NXP in Action

When it comes to addressing environmental and social challenges, the importance of datacannot be overstated. Seamless data management is crucial to solving these challenges – fromtracking progress to evaluating impacts and making informed predictions. Building on our deep
technological expertise, we are creating solutions that make data centers more efficient, moresecure, and more flexible.

LEARN MORE

Like our customers, partners, and other stakeholders, we view sustainability as a journey. 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.

APPENDICES

23

GREEN INNOVATION BOND
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
Product Solutions
Green Innovation BondOn April 29, 2020, NXP was one of the first semiconductor companies to issue a green innovation bond, raising $1 billion USD in proceeds for climate-related and environmental initiatives for both
R&D and other green projects. Since then, we have issued two more such bonds — one on May 4, 202 for $1 billion USD and one on May 16, 2022 for another $1 billion USD. All the proceeds ofthese offerings are allocated to Eligible Green Projects defined in our Green Innovation Bond Framework.
In the Economy section of our Sustainability and ESG website, we’ve posted our 2022 Green Innovation Bond Report, which describes how we applied the proceeds and, where feasible, provides
insight regarding the potential impact on global sustainability.

GREEN INNOVATION BOND: ALLOCATION BY UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs)
Green innovation bond
$1,000,000,000 USD 3.4% notes, due May 1, 2030

Green innovation bond
$1,000,000,000 USD 2.5%, due May 11, 2031

TaxationEnterprise Risk Management
Business Continuity

Allocation by SDG
1. Energy efficiency in power adaptors

GOVERNANCE
ESG

Amount in $ Millions USD
2019

2020

2021

160.8

144.8

86.3

Allocation by SDG
1. Energy efficiency in power adaptors

4. S ignificantly reducing power consumption of
5G networks

4. Significantly reducing power consumption of
5G networks

5. E dge processing reducing the need for energy–hungry
cloud services5. Edge processing reducing the need for energy–hungry
cloud services

6. S
 mart buildings

6. Smart buildings

Amount in $ Millions USD
2021

2022

258.5

138.4

389.9

213.3

648.3

351.7

OUR TEAM MEMBERS7. G reen project related to our manufacturing andnon–manufacturing facilities

ENVIRONMENT

1.5

3.7

–
2. Smart mobility3. Preventing emissions through automated andconnected traffic

SUPPLIER ENGAGEMENT
2. S
 mart mobility
3. P reventing emissions through automated andconnected traffic

PRODUCT STEWARDSHIP

209.9

264.6

128.4

372.2

413.1

214.7

APPENDICES

Total

Total

24

GREEN INNOVATION BOND
INTRODUCTION

Green innovation bond
$1,000,000,000 USD 5.0%, due January 15, 2033

2022 ESG HIGHLIGHTS
Allocation by SDG

OUR BUSINESS
1. Energy efficiency in power adaptors

ECONOMY4. S
 ignificantly reducing power consumption of
5G networks

Product Solutions

5. E
 dge processing reducing the need for energy–hungry
cloud services

Green Innovation Bond

Amount in $ Millions USD
2022
390.5

6. S
 mart buildings

TaxationEnterprise Risk Management
Business Continuity

2. Smart mobility3. Preventing emissions through automated andconnected traffic

GOVERNANCE

609.5

ESG
OUR TEAM MEMBERSENVIRONMENT

Total

1000.0SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES25

TAXATION
INTRODUCTION

We comply with all applicable
tax laws

2022 ESG HIGHLIGHTSOUR BUSINESSWe align our profit allocation withinternational (OECD) tax principles

ECONOMY
Product Solutions
Green Innovation Bond
TaxationEnterprise Risk Management

We use tax incentives to directly
support innovation and R&D

Business Continuity

We have zero tolerance fortax evasion

GOVERNANCE
ESG
OUR TEAM MEMBERS

We have no presence in countries
on the EU’s list of non-cooperative
jurisdictions

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESWe are open and transparent with
tax authorities

Since our founding as a company, NXP has applied a tax
strategy that is sustainable, transparent, and fully aligned withwell-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,” andthat’s why we are a responsible, accountable taxpayer. At thesame time, transparency helps us offer insights for a betterinformed public debate, and invites public examination. The
result is an approach to taxes that helps us contribute to theoverall welfare of society.
To further enhance sustainability, we disclose how we manage
our tax obligations. Our quantitative tax effects are detailed in
our published financial documents.
Also, to demonstrate transparency with our stakeholders, wewill soon begin disclosing country-specific tax information,in keeping with the EU directive on public, country-bycountry reporting.

OUR APPROACH TO TAX

NXP’s tax strategy – that is, the way we approach, manage,
and assess the risk of taxation – 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 is effectively embedded within the tax strategy andacross the tax organization.
NXP aims to support stable, transparent, and predictable tax
systems that incentivize long-term investments and economic
growth. NXP consistently maintains strict adherence withthe applicable tax laws of the jurisdictions where it operates,
always taking into consideration the ultimate purpose of
these laws.

NXP’s tax structures are based on global standards andframeworks supported by the Organization for Economic
Cooperation and Development (OECD). We believe that
operating within this framework creates a constant contribution
to the advancement of the UN’s Sustainable
Development Goals (SDGs).
NXP invests in R&D, manufacturing, and go-to-market
activities using a cross-functional model, leveraged by multiple
organizations globally. The resulting supply chain and productdevelopment are the foundation of NXP’s structure fortransfer pricing.
Considering our product-development framework, NXP
leverages the available tax incentives and tax regulations in
the various jurisdictions where it operates. The most important
tax incentives NXP is eligible for are the ones that drive andpromote innovation and R&D activities. For example, as a
Dutch multinational focused on research and development,
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% to 9%. The effective
Dutch tax rate for NXP is well above 15%.

NXP’S APPROACH TO TRANSFER PRICINGAs a multinational enterprise, NXP operates in many different
tax jurisdictions and frequently deals with intragroup transfersthat involve cross-border payments within the group. To ensurethat all intragroup parties involved get a fair remuneration forthe services 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 a fair profit allocation between jurisdictions, NXP
continuously reviews NXP’s taxation strategy to make sure it
is aligned with the businesses in the respective legal entities
through which the company operates. Furthermore, NXP
benchmarks and compares intragroup transfer prices to ensurethat 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 the parties weren’t related.
26

TAXATION
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
Product Solutions
Green Innovation Bond
TaxationEnterprise Risk Management
Business Continuity

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT

NXP is fully committed to the Action Plan promoted by theOECD to prevent Base Erosion and Profit Shifting (BEPS). To
monitor current and emerging trends in the international tax
field, regular meetings are held within the tax department toensure we act appropriately upon them.
NXP does not have a presence in black-listed jurisdictions as
defined by the European Union and does not use artificial
structures to achieve tax advantages or minimize tax liabilities.
Upon business acquisition, NXP’s Tax Team ensures that theacquired structure aligns with NXP’s Transfer Pricing Policy.

TAX GOVERNANCE

Potential violations of NXP’s Tax Policy can be confidentiallyreported using various reporting channels, such as
management, an ethics liaison, or the NXP Ethics Committee,
or can be submitted using the phone or web option of ourSpeakUp line, a system hosted by an independent third party
that facilitates anonymous reporting. A strict policy of nonretaliation is in force to protect any team member who reports
potential violations.

The NXP tax department is a centralized organization thatmanages both regional and functional 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 anddisclosed in the annual and quarterly reports. Furthermore,fact-based tax accounting and policy advice is available in atimely manner throughout NXP.

ENGAGING WITH TAX AUTHORITIESAND STAKEHOLDERSNXP reviews and approves tax plans and targets annually,
consistent with industry-wide, best-in-class control andgovernance frameworks. Within NXP, the tax department is led
by a Senior Vice President (SVP), reporting directly to the Chief
Financial Officer (CFO). The CFO is responsible for updating
the Audit Committee of the Board of Directors on a regularbasis, with support from the tax-department leadership.

RISK ASSESSMENT AND MITIGATIONPRODUCT STEWARDSHIPAPPENDICESThe Tax Team continuously monitors the processes for tax
accounting, tax compliance, and reporting, to identify andmanage potential risks. The Team documents every stage ofthe process. When the Team identifies potential risks, NXP’s Tax
Team applies critical and professional reasoning on an issue-byissue 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 taxaccounting control framework that assures compliance with the
US 2002 Sarbanes-Oxley Act (SOX).

NXP has a low appetite for tax risk. Nevertheless, NXP
operates on a global basis and is potentially exposed tonumerous 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 regionaland functional dimensions.

NXP is committed to open and transparent relationships with
tax authorities, grounded on ethical integrity, collaboration,and mutual respect. For all requests of information or audits,
we provide the required documentation in a timely manner.
An example of NXP fostering and maintaining long-term
relationships with tax authorities is the participation of NXP in acooperative compliance program available for large taxpayers
headquartered in the Netherlands.
Furthermore, NXP provides feedback and insights togovernments and international organizations, such as theOECD and local tax authorities, from our perspective as amultinational corporation and a member of thesemiconductor industry.
An example of NXP engaging with stakeholders is NXP’s
participation in the European Business Tax Forum (EBTF), a
leading body of European businesses dedicated to raising thestandards on responsible tax practices and transparency.
27

ENTERPRISE RISK MANAGEMENTINTRODUCTION

Our management is directly responsible for executing our process for Enterprise Risk Management (ERM), which helps us promptly identify,
evaluate, prioritize, respond to, and manage key risks impacting NXP’s strategic objectives.

2022 ESG HIGHLIGHTSThe objectives of our ERM process are as follows:

OUR BUSINESSECONOMY
Product Solutions
Green Innovation Bond
TaxationEnterprise Risk Management• 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• Ensure risk-management governance, including quarterly reporting and evaluation
Key ERM activities include:

ESG
OUR TEAM MEMBERS







Identify andAssess Risks

Respond to Risk

Conduct
Management
Assurance

MonitorCommunicate

Evaluate

ENVIRONMENT
SUPPLIER ENGAGEMENT

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 Teamoversees, 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 arisk-management framework, as well as arisk-monitoring mechanism, and by facilitating
execution of the ERM process. The framework
includes a yearly risk assessment andquarterly reviews.

• Prioritize and align risk-management efforts, to use resources effectively

Business Continuity

GOVERNANCERISK MANAGEMENT GOVERNANCE

Our procedures include plans for reasonable coverage of potential key risks but, despite the thoroughness of the process, unforeseen
events that impact the strategy may occur.

MANAGING RISK ACCORDING TOOUR 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 isdifferent for different risks and therefore thelevel of mitigation varies. For mitigation of
the operational, financial disclosure, andcompliance risks we rely on our framework ofbusiness controls, process, and authorizations.

PRODUCT STEWARDSHIPAPPENDICES

28

BUSINESS CONTINUITYINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSNXP takes ongoing actions to avoid business interruptions that may affect our team members,customers, suppliers, communities, investors, or other stakeholders. We also prepare forpotential interruptions, so as to avoid or minimize their impact, and so we can ensure
continued business operations. Whenever business disruptions do occur, NXP provides thoseaffected with timely and accurate information. We regularly review our Business Continuity andCrisis Management Programs, and our response to interruptions, to identify lessons learned
and implement actions for continuous improvement.

THE COVID-19 PANDEMIC

Prevent

PROGRAM AND TEAMSECONOMY
Product Solutions
Green Innovation Bond
TaxationEnterprise Risk Management
Business Continuity

Review

PrepareOUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPRUSSIA-UKRAINE CONFLICTOur Business Continuity and Crisis Management Teams worked to anticipate and respond torisks related to the conflict between Russia and Ukraine. First, we worked to ensure the safetyof team members and confirm contingency plans for operations in Europe. We also evaluatedrisks to our supply chain, including energy and raw materials. Corporate and Site BusinessContinuity Teams took proactive steps to avoid or minimize the potential for disruptions fromour suppliers and to our business operations.
NXP’s Business Continuity Program is inclusive of all NXP businesses, activities, andmanufacturing sites, and is modeled on the International Organization for Standardization’s ISO
22301 standard and the International Automotive Task Force’s IATF 16949 Section 6.1.2.3. Fora detailed overview of NXP’s Business Continuity program, visit this link.

GOVERNANCE
ESG

In 2022, Corporate and Site Business Continuity Teams continued to monitor developments
and impacts related to the COVID-19 pandemic. They provided assistance to NXP teammembers, and monitored adherence to internal and governmental health and safety protocols,
to assure worker protection and continuance of business operations.

Recover

The Corporate and Site Business Continuity Teams consist of representatives from various
business functions and organizations. Teams identify potential risks that can have a major
impact on product availability, supplies (such as wafers, chemicals, and gases), structures,
manufacturing tool-sets, facility systems, and utility infrastructure. The teams are also
responsible for strategic, tactical, and operational decisions while implementing their specificbusiness-continuity plans. The Corporate Team includes executive-level representatives who
receive reports from individual Site Teams with specific business-resumption activities. During
an event, all groups interact with each other and, if necessary, escalate issues to the Corporate
Team for additional assistance.

Respond

APPENDICES

29

BUSINESS CONTINUITY
BUSINESS IMPACT AND RISK ASSESSMENTS

INTRODUCTION
2022 ESG HIGHLIGHTS

Site Assets Risk
Management

OUR BUSINESS

Sites, Utilities, andNatural Hazards

Product Supply
Continuity
Product Delivery

TRAINING AND TESTINGECONOMYTeams conduct regular training and testing/drills. This builds awareness and spreads
knowledge about how to handle disruptive events. Training covers key roles andresponsibilities, crisis-management protocols, and how to handle site-specific scenarios.

Product Solutions
Green Innovation Bond
Taxation

Our sites conduct drills, at least annually, to test the effectiveness of the continuity plan fora wide range of potential disruptions. This includes disruptions caused by events such as
equipment failures, externally provided products, processes and services, natural disasters,
fires, utility interruptions, labor shortages, and IT issues and cyber-attacks.

NXP Global Crisis
Management andBusiness Continuity

Enterprise Risk Management
Business Continuity

GOVERNANCENOTIFICATIONESGOUR TEAM MEMBERSENVIRONMENT

When assessing how an event may impact the business, we focus on likelihood, impact, andrecovery time. Each attribute receives a numerical score, either assigned by Business Continuity
Team members, or from insurance risk analytics, including natural-hazard events. Assessments
are reviewed at least annually. Each Site Team defines, executes, and measures the results ofrisk-mitigation actions in order to reduce the likelihood and/or impact of identified potential
events.

Protection of
Information

Procurement Continuity

IT Systems

Material Delivery

We utilize multiple internal and external alert systems to notify us if there are incidents at ornear 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 and longitudes of our suppliers so
we can identify incidents that may affect them.
Teams are notified whenever events happen, and this immediately triggers an assessment andaction-planning process. If the event may impact our supply or business continuity, we take
immediate mitigation actions. Proactive and timely communication with our customers is a key
part of this process.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

30

GOVERNANCEA STRUCTURED APPROACH TO ENSURECORPORATE EXCELLENCEOVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

We are subject to a variety of requirements for corporate governance and best-practicecodes, but the most relevant are those in the Netherlands and the United States. The current
Dutch Corporate Governance Code (DCGC), dated December 8, 2016, applies to all Dutch
companies listed on a government-recognized stock exchange, whether in the Netherlands orelsewhere. The code is based on a “comply or explain” principle.

• We only have outstanding common stock. No priority, preference, or other shareswith special voting rights are issued, and cannot be issued without majority
shareholder approval

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

• We allow special meetings of our shareholders to be called when requested, using thewritten request of shareholders holding at least 10% of our outstanding voting stock• Any issuance of common or preference shares, for any reason, is subject to the approvalof the Annual General Meeting of shareholders• We have a transparent corporate structure, with approval rights of our general meetingof shareholders for any significant change in the identity or nature of our company
or business• Each share of our common stock confers the right to cast one vote at the Annual General
Meeting of shareholders• We have a one-tier board structure• Our directors are appointed for one-year terms and are elected or re-elected every yearby the shareholders at the Annual General Meeting of shareholders• We do not have a “poison pill” policy in place

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

32

BOARD OF DIRECTORSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSNXP is committed to effective corporate governance that strengthens the accountability of
the Board of Directors (the Board) and management. The Board is collectively responsible forthe management, general, and financial affairs of NXP, as well as our policy and strategy. The
Executive Director of the Board, who is also our President and CEO, is responsible for day-today management and for preparation and execution of Board resolutions, to the extent thesetasks are not delegated to a Board Committee.

BOARD COMPOSITIONECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESThe number of executive and non-executive directors is determined by the Board. Our directors
have a wide variety of relevant skills, professional experience, and backgrounds. Their diverse
viewpoints and varying perspectives help us represent the interests of all our stakeholders.

EXPERTISE

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, expertise, and diversity, to ensure the Board remains
effective and well-qualified. In 2022, we added one new independent director, Mr. Chunyuan
Gu. Mr. Gu has expertise in the areas of environmental, social, and governance (ESG) issues,
human capital, and risk management, among others.

DIVERSITY

The Board is committed to supporting, valuing, and leveraging diversity in its composition. This
includes gender and ethnic/cultural diversity, to ensure a balance in representation. The Board
comprises a mix of men and women, with neither gender accounting 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, are independent directors under
the applicable Nasdaq listing standards, the Board’s rules of procedure, and the DCGC. Our
Board, excluding the Executive Director, has an average tenure of approximately five years. Sixof our non-executive directors have been members of the Board for four years or less.

BOARD DIRECTORSHIPS AND BOARD MEMBERSHIPSThe Nominating, Governance, and Sustainability Committee has determined that members of
the Board shall have no more than four board memberships in public companies in addition toservice on the NXP Board.

33

BOARD OF DIRECTORSINTRODUCTION

Board of Directors

2022 ESG HIGHLIGHTSOUR BUSINESS
Kurt Sievers
President andChief Executive
Officer, NXP
Semiconductors
N.V.

ECONOMY
GOVERNANCE

Sir Peter Bonfield(Chair)Former Chief
Executive Officer,
British Telecom plc

Annette Clayton
President andChief Executive
Officer, Schneider
Electric SE North
America

Anthony Foxx
Former Chief
Policy Officer, Lyft
Inc.

Chunyuan Gu
Former Presidentof Asia/ME/Africa,
ABB Ltdxx

Ethnic Diversity

Board of Directors

Gender Diversity

Ethics

Age

54

78

59

51

Anti-Bribery and Corruption

Director Since

2020

2010

2021

Privacy

Knowledge and Expertise

Cybersecurity

Executive Leadershipxx

Industry and Technology
Experiencex

Strategic Planningx

x

ENVIRONMENTManufacturing andOperations

x

International Experiencex

Human Capitalx

IT and Cybersecurity
Corporate Governance

PRODUCT STEWARDSHIPGregory Summe
Managing Partner,
Glen CapitalPartners

Karl-Henrik
Sundström
Former Chief
Executive Officer,
Stora Enso

x

x

64

66

63

53

66

63

2021

2022

2019

2013

2019

2015

2019

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Risk Management

SUPPLIER ENGAGEMENT

Jasmin Staiblin
Former Chief
Executive Officer,
Alpiq

x

Financial ExpertiseOUR TEAM MEMBERS

Julie Southern
Former Chief
Commercial
Officer, Virgin
Atlantic Airways
Ltd

Diversity and Tenure

Overview

ESG

Lena Olving
Former President
and Chief
Executive Officer,
Mycronic AB

x
x

x

x
x

ESG Expertise

x

x
x

x
x

x
x

x

x

x
x

Board Committees

APPENDICES

Audit

x

Compensationx

Nominating andGovernance

x

x

Chair

x

x

x
x

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 2022.

Chair
Chair

34

BOARD OF DIRECTORSINTRODUCTION

Knowledge and Experience of the Board of Directors
Executive Leadership

Executive-management experience with large or international organizations

Industry and Technology Experience

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

Strategic Planning, Growth, Mergers,
and Acquisitions

Planning knowledge of corporate strategy and strategic planning, andexperience with mergers, acquisitions, and other strategic transactions

Financial, Audit, and Accounting Expertise

Financial, audit, and accounting expertise and experience with corporate
finance, including financial experts as named in the company filings andexperience as a CFO, Auditor, Corporate Treasurer, or CEO of apublic company

Manufacturing and Operations

Experience with sophisticated, large-scale international manufacturing
operations

International Experience

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

Corporate Governance, Legal, Global
Compliance Experience

Knowledge of corporate-governance issues applicable to companies registeredwith the US Securities and Exchange Commission (SEC) and listed on the
Nasdaq, and experience within international regulatory affairs or legal sectors

ENVIRONMENT

Human Capital/Talent Development

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

SUPPLIER ENGAGEMENT

Risk Management

Experience in assessing and managing enterprise risks

PRODUCT STEWARDSHIPIT and Cybersecurity

Experience in understanding and managing information technology andcybersecurity threats

ESG Expertise

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

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG
OUR TEAM MEMBERS

APPENDICES

35

BOARD OF DIRECTORSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG

BOARD COMMITTEESThe Board delegates certain oversight functions to Board
Committees, which meet regularly and report back to theBoard. The three standing committees of the Board are the
Audit Committee, the Human Resources and Compensation
Committee, and the Nominating, Governance, andSustainability Committee. The scope and responsibilities ofeach committee are documented in written charters.

ESG BOARD OVERSIGHTOur ESG strategy is aligned with and incorporated into
the company’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 totheir responsibilities, and then integrating committee work onthese issues in their reports to the full Board.
ESG Program oversight is delegated to the Nominating,Governance, and Sustainability Committee, which oversees
integration of a broad set of ESG considerations into business
functions, and delegates aspects of ESG oversight to the Auditand Human Resources Compensation Committees for ESG
matters within their core areas of expertise.

OUR TEAM MEMBERS• Nominating, Governance, and Sustainability Committee –Oversight of sustainability policies, goals, and programs

ENVIRONMENT• Audit Committee – Oversight of ESG disclosure processes
and controls, and internal and external assurance over
ESG reporting

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES• Human Resources and Compensation Committee –Oversight of human-capital management policies,
programs, and initiatives, including company culture, talentdevelopment, employee retention, diversity and inclusion,and compensation, including the alignment of ESG goals to
incentive pay programs
The Nominating, Governance, and Sustainability Committee
receives quarterly updates from representatives of the ESG
Management Board and, in turn, reports on these efforts inplenary meetings of NXP’s Board of Directors.
36

ETHICS
2022 ETHICS REPORTING PERFORMANCECODE OF CONDUCTINTRODUCTION

NXP’s Code of Conduct (the Code) sets out the principles thatguide us as we work to fulfill our ambitions as a responsible
and ethical company. It serves as a framework and details
the behavior expected from every team member, director,
contractor, or anyone else who works on behalf of NXP.
The Code is available in 12 languages and can be foundon www.nxp.com or the NXP intranet.

1212022 ESG HIGHLIGHTS

Opened Reports
Received by the
Ethics Committee

OUR BUSINESSECONOMYThe Code addresses business and personal integrity, use ofcompany assets, employment at NXP, and external activities,
and provides guidance on reporting potential violations.
The Code was last revised in 2021. To incorporate the Codeinto our way of working, we train our team members on theprinciples of the Code.

GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG

96%

62%

Closed Reports

SubstantiatedReports

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESThe most-reported types of violations included violations ofinternal policies, theft, conflict of interest, and harassment.
We aim to compete in an ethical and lawful manner, comply
with international trade regulations, practice transparency,
maintain accurate business records, and never engage
in bribery or corruption or insider trading. To protect ourcompany’s reputation, we have policies related to these andmany other topics that we expect everyone who works for NXP
to comply with.

ETHICS TRAINING

In October 2022, the annual Code of Conduct training wasrolled out to our team members. The training was offered in 11
languages and focused on NXP values and expectations as set
forth in the Code. The 2022 training addressed several topics,
including trade compliance, fair competition, the use of social
media, and speaking up in NXP. Team members were required
to acknowledge receipt and understanding of the Code. A test
is part of the training and team members need to pass the test
to receive certification.
NXP’s goal is 100% completion by all enrolled individuals.
In 2022, we achieved a completion rate of 98.6%. Since thetraining window opened in Q4, we did not reach our 100%
completion rate at the end of 2022. In 2023, as we continue
to work towards 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 sick leave, parental
leave, or other extenuating circumstances.

37

ETHICSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview

ALLEGATIONS APPROACH AND MANAGEMENTETHICS COMMITTEEAll reports are assessed and discussed by the NXP Ethics
Committee. After the initial assessment of a report, an investigationteam is appointed with the right expertise and skill set to
conduct an in-depth investigation. Based on the findings of theinvestigation, a decision is made about whether the report can besubstantiated. If so, we take appropriate follow-up actions. These
actions can include education, organizational changes, counseling,
reprimand, suspension, and/or termination, depending on thenature and severity of the finding and the party’s willingness andability to rectify the issue. While it is difficult to set a fixed timetable
for resolution, since complaints vary in scale and complexity, mostcan be dealt with in under two months.

The NXP Ethics Committee reviews reports and grievances andoversees investigations into alleged violations of the Code. The
Ethics Committee consists of five senior leaders from Legal,Internal Audit, Human Resources, and Sustainability. Members
are based in the Americas, Europe, and Asia-Pacific regions. The
Ethics Committee meets bi-weekly to discuss all reports received
and to monitor the progress of ongoing investigations. The Ethics
Committee reports quarterly to the General Counsel, the Chief
Financial Officer, the Chief Human Resources Officer, and the Audit
Committee of the Board regarding allegations and investigations
that are in progress or completed.

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Number of Reports Received by the Ethics Committee

Cybersecurity

ESG

Number of Reports

ENVIRONMENT

100

4.8

75
3.2
50

SUPPLIER ENGAGEMENT

1.6

25

PRODUCT STEWARDSHIP
0.0

0

APPENDICES

2017

2018

2019

Number of Reports

2020

2021

Reports per 1,000 Team Members

2022

Reports per 1,000 Team Members

OUR TEAM MEMBERS

6.4

125

SpeakUp

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

We are committed to promoting aculture of integrity, and encourage
our team members, as well as
external business partners and third
parties, to express any concerns
they have related to potential
violations of the Code, NXP
policies, or the law.

Concerns and grievances can be confidentially lodged using
various reporting channels, such as management, ethics
liaisons, or the NXP Ethics Committee. There are dedicatedethics liaisons regionally and in each country. Concerns andgrievances can also be submitted using the phone or web
option of SpeakUp, a system hosted by an independent third
party that facilitates anonymous reporting. Team members
are encouraged to report potential violations of our Codeusing any of our reporting channels.
Our SpeakUp reporting channels are communicated to allteam members through the Code, dedicated intranet web
pages, trainings, our website, and various other means.
SpeakUp can be used by any employee, contractor, business
partner, stakeholder, or other third parties.
All concerns raised are taken seriously. We apply the highest
standards of confidentiality in the handling of all reports
received. We have a strict non-retaliation policy to protect
those who report concerns and grievances. Anyone whoreports a concern in good faith is protected from retaliationin the form of harassment, adverse employment, or
career consequences.
In recent years, we have increased our communication
about the importance of speaking up and the available
reporting channels. In 2022, our reporting levels remain high,indicating that our reporting channels are effective.

38

ANTI–BRIBERY AND CORRUPTIONINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors

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 andregulations that apply to NXP, such as the Foreign Corrupt Practices Act (FCPA) in the UnitedStates, and the Anti-Bribery Act 2010 in the United Kingdom (UKBA).
We take a zero-tolerance approach to any form of bribery and corruption, regardless of
the identity or position of the originator or recipient of the bribe. Bribes, other improper orunauthorized payments, and acts that create the appearance of promising, offering, giving,or authorizing such payments are not tolerated.
This applies to all of our team members, directors, officers, and organizations, as well as any
third parties acting on behalf of NXP, and to all transactions in any country where we operateand do (or seek to do) business. Any violation is deemed a serious violation of the Code andwill lead to severe disciplinary action.

EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

39

PRIVACY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG
OUR TEAM MEMBERS

NXP recognizes the importance of protecting and safeguarding personal data in today’sconnected world. We respect the privacy of everyone involved in doing business for or with
NXP, and ensure personal data is handled in a fair, lawful, and ethical way. We take appropriate
steps to protect the personal data in our possession. We take the principles of data protection,such as data minimization and purpose limitation, seriously.
Data breaches are unfortunate, and can have a significant impact on individuals andcorporations 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 POLICIESGOVERNANCE

THIRD PARTIES AND DATA TRANSFERS

TRAINING

NXP has a Privacy Policy and a Privacy
Statement. The Privacy Policy provides
guidelines and outlines the minimum
requirements on privacy and data protection
for NXP. The Privacy Statement describes thetypes of personal data we process and why
we process this data. It outlines the rights
individuals have regarding personal dataand how those rights can be exercised, anddescribes how we respond to inquiries relating
to data, including requests to delete personal
information. Other guidelines relating to
privacy include our Data-Breach Procedureand Data-Retention Policy.

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

We take measures to ensure that third
parties who process personal data on ourbehalf do so in accordance with applicablelaws and regulations. We conclude DataProcessing Agreements and, in the caseof international data transfers, ensure datatransfer mechanisms, such as the modernized
standard contractual clause, are in place.

We run a dedicated Privacy-and-DataProtection Program to ensure we staycompliant with applicable privacy laws
and regulations. Located throughout theorganization, Privacy Champions havebeen designated who align with the Privacy
Team on privacy matters that occur in theirdepartment. Our Privacy Champions ensurethat any activities that involve the processingof personal data are identified and that, if
required, data-protection and privacy impact
assessments are performed. To keep a recordof processing activities, we use OneTrust, atool that helps us map the data we process as
a company.
Privacy Champions are trained on general
privacy topics and meet virtually on a monthly
basis to share knowledge and discuss thelatest developments regarding privacy anddata protection. There is also a general
privacy training available for all NXP teammembers. Departments that deal with aspectsof data protection and privacy in their day-today activities receive additional training fromthe Privacy Team.

40

CYBERSECURITY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
Overview
Board of Directors
EthicsAnti-Bribery and Corruption
Privacy
Cybersecurity

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTOUR APPROACH

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 infrastructure and services
against external threats, securing our manufacturing operations from compromise, limiting
damage through processes and controls, and protecting our intellectual property.
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 for cybersecurity risk
management. To date, we have experienced no cybersecurity incidents that resulted in amaterial adverse effect to our business or operations.

GOVERNANCE

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 tobusiness 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.
NXP’s program for IT Risk Management is a component of NXP’s overall process for Enterprise
Risk Management. NXP’s Chief Information Security Officer manages the cybersecurity
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.

CERTIFICATIONSNXP is certified and externally audited to ISO/IEC 27001 with certain
additional certifications, such as Common Criteria Evaluation Assurance Level(CC EAL) 6+, Payment Card Industry Data Security Standard (PCI DSS), andGroupe Speciale Mobile Association (GSMA) Security, for dedicated functions. We also maintaininsurance coverage for cybersecurity risk.

TRAINING

Training on cybersecurity-related areas is an ongoing exercise. The NXP IT Service Desk, alongwith all NXP team members, is trained to identify cybersecurity issues and to escalate them tocorrect owners. We deliver periodic cybersecurity updates, awareness materials, and a catalog
of trainings to cover different user needs.
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 andsystems. The eMedia Policy includes a Monitoring Notice, which informs all team membersthat their activities are monitored when using NXP eMedia. The eMedia Policy is available in
12 languages, and a mandatory online training was provided to all users with access to NXP
information systems in 2022.

MONITORING

We use a multi-layer approach to identify and mitigate information security risks. On a tacticallevel, we maintain a 24x7 Security Operating Center that actively monitors for and identifies
cybersecurity threats to then initiate 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 relevant business line(s) to lead mitigation activities.

PRODUCT STEWARDSHIPAPPENDICES

41

ENVIRONMENTAL, SOCIAL,AND GOVERNANCE

ENABLING A BETTER, SAFER, MORE SECURE, AND MORESUSTAINABLE WORLD THROUGH INNOVATIONOVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
Overview
Approach
Goals
Governance

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

As a company focused on innovation, we are known for our ability to solve
problems and address societal challenges, and we are proud of the progress
we’ve made since our founding, in 2006, regarding our environmental, social,and governance (ESG) performance.
We recognize that stakeholder interest and expectations regarding our ESG
efforts have evolved considerably over the last sixteen years. Employees,
governments, shareholders, and other stakeholders have enthusiasticallyembraced ESG as a way of strengthening corporate accountability
and transparency.
Since our founding, NXP has experienced considerable growth and evolved
dramatically as a company. At the same time, we have continued to advancethe scope of our ESG efforts to align with new challenges and opportunities.
Today, we are focused on integrating ESG into our business and leveraging ourtechnology to enable a more sustainable world.
We continue to build on our ESG accomplishments. For example, we haveachieved significant reductions in emissions each year we’ve been in business,even as production has increased. For the past 11 years, we have also increased
our consumption of renewable electricity.
Another way we address ESG is by focusing on health and safety. We arecommitted to ensuring a safe and healthy workplace for our team members,
partners, and visitors, and our injury rates remain among the industry’s lowest.
For more than a decade, our Social Responsibility Team has helped us
demonstrate respect for human rights through our activities and decisionmaking. In 2022, in close cooperation with teams from the United Nations, wepublished our first Human Rights Policy, and have since formalized the NXP
Human Rights Management System. The Management System provides clear
guidance on how Human Rights due diligence is to be conducted across thevalue chain of our business.
In our view, the rapid pace of technological change is not without its
challenges, but we look to the future with optimism. We believe in furthering
our legacy of sustainable innovation, and we will continue to apply ourtechnologies in ways that help advance global sustainability. We embrace theopportunity to both inspire people and shape the future while also positioning
ourselves for sustained success.

43

APPROACH TO ESGINTRODUCTION

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

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

POLICY

We work diligently to ensure that we approach our business from an ESG point of view while delivering long-term value
for our stakeholders. Our Sustainability Policy influences the way we manage our company and the way we interact withsociety at large.
We have a long-standing commitment to operational sustainability, underscored by a history of continuous performance
improvements. Below, we outline our ESG mission and the key components of our longer-term ESG strategy.

ESG
Overview
Approach
Goals
Governance

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES44APPROACH TO ESGINTRODUCTION

ESG MISSION: ADVANCING A MORE SUSTAINABLE WORLD

2022 ESG HIGHLIGHTSSTRATEGYGUIDING PRINCIPLES

Innovate advancements that enable abetter, safer, more secure, and moresustainable world.

Push boundaries and explore new approaches
to develop innovative and sustainable products
and solutions.

Optimize our use of resources and thebeneficial social impacts associated with
our operations.

Pursue continual improvements to protect
our planet.

SOCIAL

Leverage our global and increasingly
diverse team to actively drive oursustainability mission.

Respect human rights and promote an ethical,
safe, and healthy work environment. Foster anenvironment of trust and respect, where teammembers collaborate to drive innovation, andare able to contribute to their full potential.

GOVERNANCE

Collaborate with our stakeholders on
global sustainability initiatives. Ensureaccountability, and build trust throughtransparency in our business practices
and operations.

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

OUR BUSINESSECONOMYINNOVATIONGOVERNANCE
ESG
Overview
Approach
Goals
Governance

ENVIRONMENTALOUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

45

ESG GOALSINTRODUCTION

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

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
Overview
Approach
Goals
Governance

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESINNOVATIONENVIRONMENTAL

SOCIAL

GOVERNANCE

Design and manufacturetechnology that positively
impacts the planet and society

Carbon neutrality by 2035

25% women in R&D by 2025

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

50% underrepresented minorities
in our US workforce by 2025

Work with our supply-chain
partners to reduce theirenvironmental footprint

Optimize natural resourcesby 2027• 50% renewable electricity• 60% of wastewater recycled• 90% of waste recycled

Zero tolerance of forced laborand human-rights abuses

Develop higher-performing,
more energy-efficient products

Integrate ESG into our businessso we can foster ownership andaccountability

Zero workplace injuries

46

ESG GOALSPROGRESS TOWARD OUR ESG GOALSINTRODUCTION
2022 ESG HIGHLIGHTSINNOVATIONOUR BUSINESSGOALSPROGRESS IN 2022

Design and manufacturetechnology that positively
impacts the planet and society

We work to reduce the environmental impact of our facilities and our supply chain, and we consider ways to decrease
the use of raw materials in our designs.

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 performancein a smaller footprint, with the goal of saving on raw materials.

Carbon neutral by 2035

In 2022, we decreased our absolute Scope 1 & 2 emissions by 1% compared to our baseline year of 2021.

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

In 2022, we decreased our absolute Scope 1 & 2 emissions by 1% compared to our baseline year of 2021.

50% renewable electricity
by 2027

In 2022, we used 35% renewable electricity, an increase of 4 percentage points compared to 2021, and an increase of
21 percentage points compared to 2012.

60% of wastewater recycled
by 2027

In 2022, we recycled 48% of wastewater, an increase of 1 percentage point compared to 2021, and an increase of 16
percentage points compared to 2012.

90% of waste recycled
by 2027

In 2022, we recycled 83% of waste, an increase of 7 percentage points compared to 2021, and an increase of 10
percentage points compared to 2012.

25% women in R&D by 2025

In 2022, there were 19% women in R&D, an increase of 2 percentage points compared to 2021.

50% underrepresented
minorities in our US workforce

In 2022, there were 51% underrepresented minorities in our US workforce, an increase of 2 percentage points
compared to 2021.

Zero tolerance of forced laborand human-rights abuses

In 2022, we took the following steps to ensure zero tolerance of forced labor and human-rights abuses:• Increased the number of supply-chain due-diligence audits• Focused due-diligence audits on supply-chain risks identified during COVID-19• Published our Human Rights Policy, which includes a stronger focus on our salient human-rights risks• Updated the NXP Human Rights Management System to reflect continued changes in the human-rights regulatory
landscapeZero workplace injuries

We maintained a low Total Case Incident Rate (TCIR) of 0.10 in 2022, and remain well below semiconductorindustry averages.

Work with our supply-chain
partners to reduce theirenvironmental footprint

In 2022, we surveyed our suppliers, to gauge their environmental footprints, and used the results to derive
action plans.

Integrate ESG into ourbusiness so we can foster
ownership and accountability

In 2022, we established an ESG Program that addresses all the relevant areas of our business and also identifies roles
and responsibilities.

ECONOMY
GOVERNANCEENVIRONMENTAL

ESG
Overview
Approach
Goals
Governance

OUR TEAM MEMBERSENVIRONMENTSOCIALSUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESGOVERNANCE

47

ESG GOALSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSSUSTAINABILITY SCORECARD FOR 2022

We know that, as a large, multinational company, our operations are stronger when weleverage workforce diversity. We are also committed to reducing the environmental impact of
our operations while being good stewards of our planet and doing our part to create a moresustainable world.

Committee (HRCC) approved the introduction of a sustainability scorecard. The scorecard
contains multiple metrics and targets that support measurable year-on-year progress toward
our long-term environmental and people-related aspirations. It is important to us that all teammembers participate in this progress. Therefore, the scorecard is applicable to the AIP for allteam members and the target weighting of the sustainability component is set at 20% of our AIP.

In 2022, we added a sustainability component to our short-term Annual Incentive Plan (AIP) toreinforce our corporate commitments is these areas. Our Human Resources and Compensation

The following table lists our 2022 Sustainability Scorecard Goals, explains why we chose them,and describes the progress we made toward meeting those goals over the past twelve months.

ECONOMY
GOVERNANCE
ESG
Overview
ApproachGoals

2022 Sustainability Scorecard Goal

Why It Was Chosen?

Achievement

Roadmap for Carbon Neutrality

After engaging with external and internal
stakeholders, climate change, in particular carbon
neutrality, emerged as an important environmental
topic to be addressed in a transparent andmeasurable way. We also received feedback fromshareholders that committing to the sciencebased targets is important. A roadmap with theinterim steps to achieve the long-term goals are afundamental part of that SBTi commitment.

We sent a formal commitment letter to SBTi,
stating a goal of carbon neutrality by 2035 using
science-based targets.

Because we have global manufacturing
operations, including wafer fabrication andassembly and test, we recognize the importanceof using renewable electricity to power ourfacilities around the world. It is also an importantcomponent of our roadmap toward
carbon neutrality.

As of year-end, we have achieved 35% usage of
renewable electricity.

We acknowledge water as an important part ofour production processes and understand that, asa good steward, we should look to limit our use orreuse. Since it’s not currently technically feasible todrastically reduce the amount of water we use in
our manufacturing processes, we focus instead on
increasing our water recycling rate so we use lessincoming water.

We established a detailed roadmap of actions
and investments to improve water management
through future investments andprocess improvements.

Publish carbon neutrality commitment, submit
Science Based Targets initiative (SBTi) commitment
letter and develop a comprehensive roadmap

Governance

OUR TEAM MEMBERSENVIRONMENT

Renewable Electricity
Attain renewable electricity usage ≥29%

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Minimize Impact on Global Water Supplies
For the countries and regions where we have
manufacturing, assembly, and/or test facilities,
update water-recycling goals

We developed a roadmap for Scope 1 & 2
emissions with specific actions to achieve thegiven goal recognizing that key steps andinvestments must be taken along the journey.

2022 Performance
ACHIEVEDACHIEVEDACHIEVED48

ESG GOALSINTRODUCTION
2022 ESG HIGHLIGHTS

2022 Sustainability Scorecard Goal

Why Chosen?

Achievement

Reduce Carbon Emissions

Our roadmap to carbon neutrality includes annual
emission-reduction targets to put NXP on aclearly-defined path to reduce emissions that are
in line with the Paris Agreement goals.

As of year-end, we reduced our absolute carbon
emissions to 1,099 kTons CO2e.1

A safe and healthy workplace protects workers
from injury and illness. It can raise employee
morale, increase productivity, and improve quality,
while also lowering injury/illness costs, reducing
absenteeism, and minimizing turnover. Whilesafety is important for all our team members, weespecially focus on those who work in our various
factories around the world. We want to maintainour historically low injury rate and remain among
the best in the industry for this metric.

We conducted safety surveys to identify areasof safety risk. As a result, we developed andconducted safety training for 99% of relevant
team members and implemented corrective
actions where needed.

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 and ideasof our team members. To make measurable
progress, we established aspirational goals for
women representation by 2025 with interim
milestones of achievement.

We focused on improving our representation
within the indirect labor (IDL) portion of theworkforce by increasing the diversity of qualified
candidates, introducing more acts of engagement
and inclusion, and ensuring retention of diverse
talent. We accomplished an overall net increase of
20% in our women in IDL in the period December
31, 2021 to December 31, 2022.

Our diverse and talented team members drive
the innovation that sets our company apart andfuels our success in the market. We aim to createa clear purpose, connecting to the underlying
values that define the way we work andthe everyday behaviors that demonstrate
those values.

The purpose and values were defined throughengaged leadership ideation. The values were
further defined and connected to demonstrable
behaviors built on a foundation of trust andrespect. These values are now embedded in ourpeople systems and programs from enabling
performance to NXP manager training.

Reduce carbon emissions to ≤1250 kTons CO2e
by end of 2022

GOVERNANCE

Worker Safety
Conduct a global safety survey and ensure teammembers are properly trained on safety

ESG
Overview
Approach
Goals
GovernanceDiversity & Inclusion
Increase women in global indirect labor by ≥10%
by end 2022

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT

Cultural Transformation

PRODUCT STEWARDSHIP

Demonstrate that we have made innovationand growth essential components of ourcorporate culture

APPENDICESACHIEVEDOUR BUSINESSECONOMY2022 Performance
ACHIEVEDACHIEVEDACHIEVEDThis metric includes our Scope 1 & 2 emissions using the Intergovernmental Panel on Climate Change (IPCC) 2006 methodology for Perfluorinated Compounds (PFC) emissions.

1

49

ESG GOVERNANCE
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
Overview
Approach
Governance

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Program oversight is delegated to the Nominating,Governance, and Sustainability Committee, which oversees
integration of a broad set of ESG considerations into business
functions, and delegates aspects of ESG oversight to the Auditand Human Resources Compensation Committees for ESG
matters within their core areas of expertise.

NXP’s ESG Management Board, which is comprised of Management Team members and other senior leaders, oversees theimplementation of ESG 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 Executive Vice President (EVP) of Global Operations. The ESG
Management Board meets regularly to ensure our ESG performance is in line with our strategy and goals.

NXP ESG GOVERNANCE MODEL

Sustainable Manufacturing• Nominating, Governance, and Sustainability Committee –Oversight of sustainability policies, goals, and programs• Audit Committee – Oversight of ESG disclosure processes
and controls, and internal and external assurance over
ESG reporting• Human Resources and Compensation Committee –Oversight of human-capital management policies,
programs, and initiatives, including company culture, talentdevelopment, employee retention, diversity and inclusion,and compensation, including the alignment of ESG goals to
incentive pay programs
The Nominating, Governance, and Sustainability Committee
receives quarterly updates from representatives of the ESG
Management Board and, in turn, reports on these efforts inplenary meetings of NXP’s Board of Directors.
The CEO and the NXP Management Team, under thesupervision of NXP’s Board of Directors, are responsible for
implementation of NXP’s ESG strategy, policies, and goals.

Supplier Management

Board of Directors
Ultimate ESG Oversight

ESG Management Board
Chaired by Chief Sustainability Officer

NXP ESG Program

PeopleStrategic Business Model

Reporting

NXP ESG Program - Seven Pillars

Goals

Our ESG strategy is aligned with and incorporated into
the company’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 totheir responsibilities, and then integrating committee work onthese issues in their reports to the full Board.

Brand and Reputation

Governance50

OUR TEAM MEMBERS

THE HEART OF NXP51OVERVIEW
INTRODUCTION~34,500

2022 ESG HIGHLIGHTSTeam Members1

OUR BUSINESS

34%

37%

9,497

of Team Members
Dedicated
to R&Dof Team Members
are Women

Online Training
CoursesCompleted

ECONOMY
GOVERNANCE

NXP’s complete workforce footprint is given in “Appendix A: ESG Performance.”

ESG
OUR TEAM MEMBERS
Overview

OUR TEAM MEMBERS: THE HEART OF NXP

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

Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion

OUR PURPOSE

Compensation and Benefits

Our purpose is to bring together bright minds to create breakthrough technologies thatmake the connected world better, safer, and more secure.

Development

OUR VALUES

Our values are our fundamental beliefs and guiding principles. They speak to how we operate,
how we engage with and develop our team members, and how we push the boundaries ofcreativity and innovation. Our values build on a strong foundation of trust and respect for one
another. We hold ourselves accountable to these values by ensuring they are reflected in ourtalent programs, including hiring, learning and development, our performance evaluation
process, our rewards programs and our promotions.

Future Talent
Retention

HIGH PERFORMANCE

Health and Safety
Human Rights
Community Outreach

INNOVATION

Team-Member Demographics

EXPERTISE

COLLABORATIONOWNERSHIPGROWTHENVIRONMENT
SUPPLIER ENGAGEMENTTRUST AND RESPECTPRODUCT STEWARDSHIPAPPENDICES

1On December 31, 2022, we had approximately 34,500 employees,including approximately 1,500 employees in our joint venture.
52

OVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYWe have a long history of empowering our team members to develop their skill sets andexpand their capabilities. When it comes to engagement and development, we want ourteam members to grow, progress, and advance across job types, functions, organizations,geographies, and levels — all at a pace that is unique to the individual.

OUR POLICIES AND PROGRAMS

Across the globe, we have policies and programs to find and retain the best talent, with a
specific focus on the following:• Driving team-member engagement• Building thought leadership

GOVERNANCE• Embracing diversity, equality, and inclusion• Providing competitive and fair compensation and benefits

ESG• Enabling talent development and growth opportunities• Investing in future talent

OUR TEAM MEMBERS• Focusing on team-member retention

Overview• Giving back to our communities

Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
53

DRIVING TEAM-MEMBER ENGAGEMENTINTRODUCTION

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

2022 ESG HIGHLIGHTSENGAGING TEAM MEMBERS THROUGH SURVEYSOUR BUSINESSECONOMY
GOVERNANCE
ESG

To assess and improve team-member engagement, we regularly conduct our global Winning
Culture Survey. We invite NXP team members to share their feedback on a variety of factors,
including engagement, strategy, culture, leadership, continuous improvement, collaboration,
execution, ownership, work environment, support, and diversity, equality, and inclusion.
Surveys are administered by a third party to ensure confidentiality.
Our 2022 survey solicited input from our indirect-labor (IDL) team members, meaning thoseteam members not directly involved in production of a product. The survey results showed
positive momentum, with an increase in favorability to 97% when compared to responses
from our previous survey cycle. The results show that collaboration and ownership are thecornerstones of NXP’s culture and that our team members are engaged, feel pride in thecompany, and believe that NXP is also a great place to work.

OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent

89%

85%

83%

Response Rate

Engagement

Great Place toWork

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

88%

84%

Proud

ValuedPRODUCT STEWARDSHIPAPPENDICES
54

DRIVING TEAM-MEMBER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

Year-over-year, NXP saw improvements in 33 of the original 34 items in the survey. The
third-party administrator of the survey reported that 88% of the survey items scored more positively
than the 75th percentile benchmark, composed of companies operating in the technology sector.
Insights from our survey equip us to improve the team-member experience as well as our policies andprocesses. Using team-member feedback, we have created and improved company and/or country
and region-specific programs and made updates to our tools and resources. This includes:• Focusing on talent growth and development – To lift organizational performance andengagement, we have created development programs for all team members, including thefollowing new 2022 programs:– New Manager Essentials, an online, self-paced series of courses to help new managers,
including manager assimilation, which features two in-person meetings with the team and adebrief with the manager.

OUR TEAM MEMBERS– NXP Manager Intensive, an in-person, three-day leadership development program that teaches
managers how to effectively lead and manage their teams from within the framework of
NXP’s values.

Overview– An updated Enabling Performance process that supports everyday, spontaneous feedback.

Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

For an in-depth look at the development programs we offer team members, please refer tothe “Building Thought Leadership” and “Enabling Talent Development and Growth
Opportunities” sections.
• Introducing global “Recharge Days” – To recognize the ongoing hard work of our team members
and continue to support their well-being, we introduced NXP Recharge Days, which feature
no-meeting days in the days before/after company holidays to encourage NXP team members totake time off to recharge. In 2022, we selected holidays within each of our three regions, allowing
for time off several times a year for our teams to rest, recharge, and refocus. The well-being of
our team members remains a priority for NXP and our global Recharge Days are one of the many
benefits that support the integration of work with life commitments.

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

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

APPENDICES
55

DRIVING TEAM-MEMBER ENGAGEMENTINTRODUCTION

EXTERNAL AWARDS AND RECOGNITIONNXP is honored to have received external awards and recognition for our commitment to the development of human capital.
Some of the honors received include:2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion

Austria• For the fourth year in a row (2019 - 2022), NXP
received the Leading Employer Award in Austria, andwas rated the number-two semiconductor company inAustria by the Leading Employer Institute.
• NXP was recognized for its strong mentoring efforts
and active participation in the Business Cross
Mentoring Program in Austria, which supports women
who are high-potential managers in technical domains
by growing their skills and network.
• NXP was officially certified as a “Family Friendly
Employer” by the Austrian federal ministry.
Certification reflects our conformance with various
requirements, and confirms that we have a strategy,
with targets, for becoming even more family friendly.

France• NXP received the 2022 Top 25 Companies in FranceAward, recognizing the company as one of the bestcompanies at which to grow your career in France, as
judged by the online professional network, LinkedIn.

Germany• NXP Germany was presented with a 2022 Stevies
Award, recognizing the effectiveness of our Virtual
Showroom, which connects NXP with our audiences
and allows them to experience the company’s
breakthrough technologies in a new, interactive way.

Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Mainland China• In 2022, NXP was awarded the 2021 Tianjin
Economic-Technological Development Area (TEDA)
Top 100 Enterprises Award, recognizing enterprises
in TEDA that are outstanding and contribute to local
government and economic development.
• NXP received the 2022 ASPENCORE WorldElectronics Achievement Award by AspenCore MediaGroup, recognizing the company as Processor/DSP/FPGA provider of the year.

Malaysia• NXP was recognized for being one of 46 companies
honored with the 2022 MY AMCHAM CARES award.
The award recognizes NXP Malaysia’s support ofcorporate sustainability initiatives throughout 2022,
based on the five pillars of Strategy, Sustainability,
Communication, Measurability, and Partnership.
• NXP was awarded the Certificate of Recognition
for Excellence in Corporate Social Responsibility by
the American Malaysian Chamber of Commerce.
The certificate demonstrates understanding of thelink between business operations and society byconducting business in a way that creates long-term
economic and social values.

APPENDICES
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DRIVING TEAM-MEMBER ENGAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Mexico• In November 2022, the Mexican Chamber ofElectronics, Telecommunications, and Information
Technologies (CANIETI) honored NXP for 30 years ofpartnership and active collaboration. Together withCANIETI, NXP Mexico has consistently participatedwith the local “triple helix” of industry, academia,
and government in many initiatives around Science,
Technology, Engineering, and Math (STEM) education,social initiatives, and collaboration with peers for the
benefit of the Guadalajara high-tech ecosystem andsociety overall.

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent

Netherlands• For the third year in a row (2020 - 2022), NXP wasawarded the title of Most Attractive Employer in the
Netherlands by Kantar, the international research
partner of the Dutch staffing agency Randstad.
• NXP received the 2022 Konig Willem I Prijs Award,
naming the company as the winner of the largebusiness category for sustainable entrepreneurship.

Taiwan• NXP Taiwan received the Outstanding Foreign Firms
Award from the General Chamber of Commercein Taiwan. The Minister of Economic Affairs(MOEA) in Taiwan nominated NXP for this honor,
which recognizes the company’s contribution to
the semiconductor industry in Taiwan and NXP’scommitment to investing in the region. The award is
known as the Oscar of Taiwan’s business sector.
• NXP was one of only ten companies to receive the2022 National Industrial Relations Excellence Awardin Taiwan, recognizing our collaborative and healthy
working relationship with the union representing ourteam members.

Thailand• NXP Manufacturing Thailand received a certificate
from the Metropolitan Health and Wellness Institution(Department of Health), recognizing the company’scommitment to supporting the health of womenof childbearing age and driving action to promote
the consumption of vegetables, fruits, and othernutritious foods.

• NXP received the 2022 National Charity Award andthe 2022 Waste Recycle Award from the Ministry of
Economic Affairs Authority in Taiwan.

United States• NXP was recognized as one of the 2022 Best Large
Employers in Texas, as determined by the Forbes
media company and Statista, a statistics portal formarket and consumer data.

• NXP received a 2022 EE Award from EE Times Asia,
which recognizes companies that help with “creating
the future with the electronics industry and changing
the world with engineers.”• The online recruiting platform, Handshake, recognized
NXP with a 2022 Early Talent Award, acknowledging
the company’s best-in-class talent engagement in the
Software and Technology category.

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
57

BUILDING THOUGHT LEADERSHIPINTRODUCTION

Our talented and innovative team members create breakthrough technologies that make the connected world better, safer,and more secure.

2022 ESG HIGHLIGHTSINVESTING IN R&D

OUR BUSINESSNXP targets investment of approximately 16% of revenue in non-GAAP2 R&D every year, primarily focused on the teammembers who create our intellectual property, products, and customer solutions. NXP’s breakthrough technologies help tocreate a connected world that is better, safer, and more secure – targeting edge devices for the automotive, industrial, smart
home, communications, infrastructure, and mobile markets.

ECONOMYDEVELOPING THOUGHT LEADERS

GOVERNANCE

2022 R&D TEAM-MEMBER ADVANCEMENTS

ESG

49 Technical
Directors Named

OUR TEAM MEMBERS

7 Program
Directors Named

1 Program SeniorDirector Named

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

9 Fellows Named

Development

957 Individual Patents Awarded

Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

14%

Team-Member Demographics

of R&D Team
Members
Promoted

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Reconciliations of non-GAAP R&D to GAAP R&D can be found in the “Investor Relations” section of our website athttps://investors.nxp.com/financial-information/financial-information-0

2

APPENDICES

58

BUILDING THOUGHT LEADERSHIPINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Our commitment to developing thought leaders is evidenced
by the more than 10,000 team members (representing 34%
of our NXP workforce and 56% of our IDL workforce) who are
specifically dedicated to R&D. Through broad exposure to jobbased development activities, we were able to advance 14% of
these team members in 2022 through internal promotions. In
addition, we hired 3,185 new R&D team members, and named
49 technical directors, one program senior director, sevenprogram directors, and nine fellows.
To enable in-depth analysis of the current R&D workforce
baseline and support our strategic R&D workforce planning,
we updated our R&D job structure with more defined job
descriptions and specific skill domains. R&D team members
have been transitioned into the new job profiles, providing
valuable data on the R&D population and helping us to better
assess and develop the skills and capabilities of these teammembers across NXP. The new insights establish the baseline
for internal discussions. For example, R&D Talent 2027 was
one of the topics shared during our 2022 Strategic Planning
Alignment (SPA) meetings, in which the NXP Management
Team discussed strategic plans for the next five years. Asa follow up to the SPA, workforce planning insights werediscussed with the R&D Management Team for the longer-term
strategy of building R&D talent for the future.
To further develop the R&D community, we expanded the NXP
R&D Academy, offering a variety of learning opportunities.
We have dedicated development programs in the areas ofarchitecture, functional safety, design quality, cryptography,
security, artificial intelligence, and ideation.

Many of our R&D team members participated in an NXP school
and other development activities listed below.
• The NXP Architecture and System Engineering (ASE)
School continues to offer ASE 1 (Basic) and ASE 2(Advanced) courses. The ASE School was created todevelop top technical experts, architects, and systems
engineers and help them deliver top-rated hardware andsoftware solutions according to current and future market
demands. Ultimately, the ASE School offers exposure to
the latest technology trends through enriching technicalsessions and thought-provoking workshops led by internal
experts and selected external partners. The desired result
is to expand our pool of technical talent and make ourcurrent and future Architectural or System Engineers
more effective. To date, we have 461 nominations and 131
graduations for the ASE School.
• The NXP Safety Academy helps team members explore
safety products and enablement collateral to simplify
compliance with the ISO 26262 standard. Coursework
helps team members understand safety deliverables
and evaluate how they can help accelerate time tomarket. Safety documents are often large and complex,
so understanding what type of information is included
and how to use the information helps us save thecustomer valuable development time. Four different
on-demand learning paths have been defined to give
team members the opportunity to gain expertise andmore quickly design safety-critical automotive applications.
In total, approximately 13,000 training modules havebeen completed.

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES59

BUILDING THOUGHT LEADERSHIPINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion• We launched the NXP School of Artificial Intelligence(AI) in mid-June 2022 and already have 143 nominations.
The School of AI aims to empower NXP engineers byequipping them with cutting-edge AI technology concepts
and allowing them to develop an edge over industry peers
to lead NXP forward. These engineers will be able to learn
and apply AI concepts in their respective domains. The
long-term vision is to produce 100 AI-trained technologists
every year. The first cohort includes 50 participants in Level
1 (AI Basic Learning).
• The NXP School of Ideation is a course curriculum
designed to bring out the best ideas and stimulate the flowof innovation at NXP via various workshops. Launched in
mid-2022, the school offers various online and in-person
workshops that have already been attended by more than
170 participants. In each workshop, students learn todeeply understand a problem (and be sure it is a problem
worth solving), come up with a range of possible solutions,and then test those solutions. Students use a structured
process to learn how to turn their abilities and ideas
into practice.

Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

We also offer trainings and regular webinars, allowing our
R&D community to grow their knowledge and stay up to datewith the latest technology developments and innovations.
For example:• We hosted the 2XP, a session that allows NXP experts toshare their work and latest insights with their peers. We
also introduced the Distinguished Lecturer Series (DLS)
as an extension of the 2XP webinars that gives people
external to NXP, including professors, suppliers, andcustomers, a way to discuss exciting, emerging technicaldevelopments with our R&D community. In 2022, there
were 21 2XP sessions (with three presentations each) and
12 Distinguished Lecturer sessions, which collectively
engaged more than 2,700 attendees.

Some other examples of programs and initiatives on a global
or local scale that stimulated innovation and growth in 2022:• We continued the Technical Leadership Program in India,
which had 81 team members participate. Thirty-one of theparticipants were part of a mentoring program that paired
them with technical NXP leaders.
• NXP continued to engage with startup incubators suchas Startup Autobahn and Silicon Catalyst to nurture newand emerging technologies that have the opportunity
to drive the next wave of innovation and growth for thesemiconductor industry and society at large.
• We hosted the Artificial Intelligence in Mobility (AIM)
event, an online smart-car race challenge (season two) that
had more than 450 platform registrations, and participationfrom more than 220 premiere institutions from throughout
India, giving us 100-plus qualifying teams. Fifteen teams
impressed the panel at the pre-finale round and, fromthere, just four teams moved on to the Grand Finale stage.
• Via the NXP University Council, we continued to drive
cooperation with the academic world and build an active
network between NXP and universities. The Council
supports local teams to establish cooperation contracts,
support recruitment, and promote NXP products forstudent use.
• To stimulate knowledge transfer, we continued to have anumber of NXP Fellows who act as part-time professors
at several universities, which creates another strong link
between the university and NXP, and is beneficial for
all involved.

PRODUCT STEWARDSHIPAPPENDICES
60

BUILDING THOUGHT LEADERSHIPINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

We continue to build momentum with our support for Project and Program Managers (PMs).
In Q4 2022, we launched the fifth group for the R&D Project Leadership Program and kicked
off the PM Masterclass 1 session in August 2022. Looking ahead to 2023, we will launch
additional PM Masterclass 1 sessions and intend to introduce the PM Masterclass 2 session
for higher-level team members.
Our process for new product introductions is complex, requiring large investment as wellas successful, timely, and efficient completion. Our PM talent is vital to our ability to drivethese projects to completion, hence NXP has placed greater focus to further invest in skilled
and capable project leaders. For example, the company organized a summit for our key PM
leaders, during which we focused on harmonization, the PM role model, community building,and skill building. Our consistent focus on R&D and innovation resulted in NXP being
awarded 957 individual patents during 2022.

NXP PM DEVELOPMENT PROCESS:PM UNIVERSITY OVERVIEW3
Trainings

Overview
Team-Member Engagement

Masterclass 1

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

PM Leadership
AcademyG3, G4Development

Masterclass 2

Masterclass 3

G5, G6

G7

Future Talent
Retention

Development

Health and Safety
Human Rights

Mentoring Program

Community Outreach

Online Course

Team-Member Demographics

Looking Ahead

ENVIRONMENT

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

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

The terms G3, G4, G5, etc. refer to job grades within NXP.

361

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAt NXP, inclusion is key to living our core values, which arebuilt on a foundation of trust and respect. We recognize
the importance of representation, value diversity, equality,
and inclusion, 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 ininitiatives and resources to drive cultural awareness across thecompany, spearheaded by our Vice President and Head ofDiversity, Equality, and Inclusion (DE&I).
In 2022, we continued making progress on our DE&I journey.
We started the year by reflecting on our year-over-year
progress toward achieving our 2025 aspirational representation
goals, and our efforts to embed inclusion deeper within
the organization.

KEY HIGHLIGHTS FOR THE YEAR
• Implementation of DE&I questions within the Winning
Culture Survey – In conjunction with our third-party
survey partner, we introduced new diversity, equality,
and inclusion questions to our team-member survey, togain better insight into the team-member experienceand the sense of belonging. 89% of IDL team members
participated in the survey. Collaboration, ownership, andDE&I were the three categories with the highest favorability
ratings. After evaluating the survey results across a variety
of demographics, we learned we had a few pockets ofteam members within the company that didn’t feel astrong sense of belonging and inclusion. We conductedfocus sessions with team members from these groups
and determined recruitment, retention, development,
belonging, and communications were opportunity areas.
We collaborated with the focus teams to develop a robust
action plan aimed at improving these areas of opportunityand fostering a stronger sense of inclusion and belonging.

• Unconscious bias training for people managers – This
year, we announced our plan to deliver unconscious-bias
training to all people managers within the company. The
NXP Management Team (MT) kicked-off the initiativeby completing their session at the start of the year,with additional sessions being held for members of our
Employee Resource Groups (ERGs). Training delivery will
be an ongoing initiative until we reach our full 2,800-plus
manager population.

• Participated in the Bloomberg Gender Equality Index – For
the second year in a row, we engaged in the Bloomberg
Gender Equality Index to demonstrate our commitment
to promoting gender equality, transparent reporting,and an inclusive workplace, while helping to establish acomparable data set within our industry.
• Increased our ERG footprint – Our new ERG, United
Veterans, supports our active-duty and retired US
military veterans.

• Establishing a Diversity & Inclusion Council – We createda Diversity & Inclusion Council in August 2022, with the
purpose of serving as an advocate, resource, and governing
entity to advance NXP’s global, strategic diversity, equality,
and inclusion initiatives. The council includes many of themost senior leaders within the company, including thePresident and CEO, Chief Human Resources (HR) Officer,
Chief Sustainability Officer, Executive Vice President of
Global Operations, Head of Strategy, Vice President andHead of DE&I, along with business and strategy leadersand ERG members.
• Focus on Diverse Hiring Practices – We continued
our practice of requiring diverse candidate slates for
management roles and, where applicable, increased theaward amounts for our Employee Referral Program when
qualified women or under-represented minorities are hired
via an internal referral. We conduct a monthly review
with our leaders and Talent Acquisition Team to ensurealignment to this process.
• Introduced an Exit Interview Process – To gain a better
understanding of what’s contributing to the attrition rateof women globally and minority team members within the
United States, we implemented an exit-interview process
where these team members at specific job levels are given
the opportunity to provide direct feedback to the VP andHead of DE&I prior to exiting the company. An invitation
to participate in an exit interview is extended to the teammember upon termination notification.

APPENDICES62

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION

APPROACH

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

2022 ESG HIGHLIGHTSOUR BUSINESSLEADERSHIP

Leadership commitment and ownership

BUILDING

Building and sustaining a qualified, diverse talent pipeline andequitable processes

FOSTERING

Diversity, Equality, and Inclusion

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 fosteringrespect for everyone’s differences

Compensation and Benefits• Leveraging the diversity of thought and life experiences

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership

Development• Cultivating a collaborative work environment where team members feelvalued and are comfortable being their true selves

Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

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

Team-Member Demographics

POLICYENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESThe NXP Diversity, Equality, and Inclusion Policy outlines our key belief that every team member should be treated with respect.
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 team members, and we recruit, hire, and promote based
solely on suitability for the job and other objective and non-discriminatory criteria. By working to foster a diverse, equal, andinclusive environment where everyone feels welcomed, valued, and accepted as they are, we increase collaboration, advanceinnovation, and enable our team members to unlock their full potential.
63

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION
2022 ESG HIGHLIGHTS

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 and ethnicity representation.
We continue to focus on hiring, development, and retention across all global sites to meet our 2025 representation goals among our team-member population.

OUR BUSINESSECONOMY2025 DE&I GOALSGOVERNANCE



 

ESG

40% Women in
Overall Global
Workforce 



30% Women
in Global IDL
Workforce

20% Women
in Executive
Positions

25% Women in
R&D Positions

50% Minority
Representation in
the United States

OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

2022 DE&I PERFORMANCE

Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

37%

25%

16%

19%

51%

Women in Overall
Global Workforce

Women in Global
IDL Workforce

Women in
Executive
Positions4

Women in R&D
Positions

Minority
Representation in
the United States5

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP
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 within minority representation employees who have not self-identified an ethnicity.

4
5

APPENDICES64

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSIn a competitive hiring market, our overall team-member population grew by 11% compared
to 2021. Of this increased population, we saw an increase of 1 percentage point with women in
the global IDL workforce, 2 percentage points with women in R&D positions, and 3 percentage
points with women in executive positions. Women in the global workforce remained the samein 2022 compared to 2021. While we present gender representation data by men and women,
we acknowledge this is not fully encompassing of all gender identities.

WorkforcebyGenderGender(HC)
Workforce by(HC)
ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement

100% 100%
75%
50%

75%
100%
50%
75%
25%
50%

25%
0%

36%

0%
25%
0%

36%

Workforce by Gender (HC)
37%

36%

37%

37%

36%

37%

36%

37%

37%

64%

63%

64%

63%

63%

64%

37%

36%

63%

64%

37%

63%

63%

64%

63%

64%

63%

63%

2018

2019

2020

2021

2022

20182018

2019
2019

2020
2020

Women
2021
2021

Thought Leadership

Male
Male
Male

Diversity, Equality, and Inclusion

37%

2022 2022

Women
Women

Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTGENDER REPRESENTATION

Women represent 37% of our global workforce, and we continue to strive for noticeable
improvements in hiring women across all global sites. Additionally, we are committed toincreasing, developing, and promoting more women into technical and leadership positions
within our organizations.
To that end, we monitor gender statistics globally, across all roles, and look for continuous
improvements, which include an evaluation of the practices at the country level. Each country’s
leadership team ensures we are making improvements, where needed.
Our 2025 aspirational representation goals highlight our commitment to increasing therepresentation of women and under-represented populations at NXP. With regional hiring
targets, diverse interview panels, and inclusive leadership trainings and practices, we increase
our ability to advance representation and promote inclusion.

PRODUCT STEWARDSHIPAPPENDICES
65

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYRACE AND ETHNICITY REPRESENTATIONIn the United States, we monitor race and ethnicity representation to ensure we are attracting,developing, and retaining diverse team members.
Over the course of 2022, our Asian American population increased by 1 percentage pointcompared to 2021. We also increased the percentage of Black/African American team members
within the company by 1 percentage point, while attrition decreased from 17.6% in 2021 to
12.7% in 2022, for this group of team members. Similarly, our population of Hispanic/Latinoteam members also grew by 1 percentage point.
A breakdown of NXP’s United States (US) population, as of December 31, 2022:

GOVERNANCE

United States Race and Ethnicity

Unit

2022

White (Not Hispanic / Latino)%

49%

Asian (Not Hispanic / Latino)%

22%

Hispanic / Latino%

16%

Black or African American(Not Hispanic / Latino)%

6%

Native American or Alaska Native(Not Hispanic / Latino)%1%

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

%

0.2%

Health and Safety

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

Human Rights

Undeclared

%

6%

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention

Community OutreachTeam-Member Demographics

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 demonstrated part of our day-to-day activities.
NXP encourages what we call “Inclusion Insights” to embed inclusive practices throughout
our company every day. An Inclusion Insight is a one-to-five-minute exchange about a specificinclusion topic at the beginning of formal team meetings. Inclusion Insights are intended toserve as regular reminders about the importance of being inclusive at work, at home, and in
all aspects of our lives. The initiative is becoming more and more of a standard practice acrossthe organization. Anticipated outcomes include better engagement, increased collaboration,high performance, and innovation. Team-member feedback suggests the practice is effective.
Inclusion creates an environment in which all team members feel welcomed, valued, accepted,
respected, and included, and enables everyone to perform at their best.
We continually look for ways to advance inclusion within the company. In November, we
spotlighted the contributions of men, positive male role models, and focused on men’s healthand well-being in connection with “Movember.” Movember is an international cause thatencourages men to grow a mustache to increase awareness and raise funds for men’s health –
specifically prostate cancer, testicular cancer, mental health, and suicide prevention.

FOSTERING TEAM-MEMBER ENGAGEMENT VIA ERGs

An instrumental part of our approach to DE&I are the voices of our team members and their
engagement in driving inclusion and supporting our strategic initiatives for diversity, equality,
and inclusion.   
NXP’s ERGs are instrumental in enabling our culture and inclusive work environment, as we work
to ensure diversity throughout our company and bring unique perspectives and skills to help
those in our communities. In 2022, we:• Established United Veterans, a new ERG which supports our active-duty and retired military
veterans in the US• Grew ERG membership overall, year-over-year, by 24%

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
66

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTIONNXP now has nine primary ERGs, with 23 chapters represented in Asia, Europe, Mexico, and the United States.

2022 ESG HIGHLIGHTSNXP PRIMARY ERGs

OUR BUSINESSECONOMY
GOVERNANCE

Asian Cultural
Team

Black
Achievement
Leadership Team

Emerging
Professionals /Young Community

EQUAL

Hispanic
Education
Awareness TeamInterconnection

No eXtra Planet

United Veterans

Women in NXPESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

Membership and participation in ERGs is open to all NXP team members, and global
engagement is encouraged. Each ERG has defined mission/vision statements and goals, 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 experiences with the
ERGs, team members provide direct feedback to ERGs through surveys sent to participants.

When possible, our ERGs also partner with external organizations committed to advancing
STEM education, community wellness, and sustainable environmental practices. For example,
in 2022, our ERGs raised and donated funds and led 12 volunteer opportunities. This year, our
ERGs partnered with:• El Buen Samaritano, Texas• For Our City Day Chandler, Arizona• Based on this feedback, 2022 performance by our ERGs increased by 18% compared
to 2021.

• Green Corn Project, Texas• In 2022, the ERGs collectively hosted more than 100 events, including professionaldevelopment workshops, networking sessions, and cultural-awareness activities. For
example, our Interconnection ERG celebrated Eid al-Adha by inviting team members toenjoy traditional Muslim food and learn more about the holiday.

• National Society of Black Engineers Fresh Start, Texas

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 and teams. An exampleof this collaborative effort is the company’s annual observation of International Women’s Day(IWD), which celebrates the social, economic, cultural, and political achievements of women. In
2022, thousands of NXP team members around the world participated in more than 65 virtualand onsite IWD events. Another example of global collaboration is NXP’s first Pride flag-raisingacross our global sites. Additional annual observances celebrated by our ERGs include Black
History Month, Pride Month, Hispanic Heritage Month, and Global Diversity Awareness Month.

• Huston Tillotson University’s Austin Pre-Freshman Engineering Program (AusPREP), Texas• Out Youth, Texas• Valley of the Sun United Way, Arizona• The National Expert Organization on Girls in STEM (VHTO), Netherlands
NXP engages regularly with our ERG leaders, meeting several times a year to share regular
updates about our focus on and progress in DE&I, while listening for areas of opportunity
to consider. In 2022, for example, based on input from ERG leaders, we invited selectERG leaders to attend an in-depth workshop on executive coaching and development.
The workshop, led by an external facilitator, focused on executive presence, engagement,
effectiveness, and insights, and included role-playing and coaching sessions with opportunities
for direct and focused feedback.

PRODUCT STEWARDSHIPAPPENDICES67

EMBRACING DIVERSITY, EQUALITY, AND INCLUSIONINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

DE&I COMMITMENT

NXP’s commitment to DE&I is also reflected in ourcollaboration with universities. We are committed to increasing
representation of women and other under-represented 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.
For example, to support NXP’s aspiration to improve gender
representation:• The Women in NXP China chapter participated in avideo campaign for new college graduates where theyshared their experiences on NXP’s inclusive culture anddevelopment opportunities.
• In the EMEA region, we organized panel discussions withlocal female NXP engineers in March 2022, helping toconnect female university students with role models.
• Another initiative, called “Women in Technology,” wasstarted in 2022 in India. This is a year-long program,designed for women in engineering studies, that consistsof specialized training by industry experts for a total of 50
women. The aim is to encourage young women and mentor
them for a successful career in the industry.
Also, the Black Achievement and Leadership Team ERG
partnered with National Society of Black Engineers (NSBE)
chapters to host Leveling Up Workshops, an internallydeveloped, career exploration workshop which provides
guidance, support, and early access to tools, tips, and NXP
resources to students.

DEVELOPING OUR DIVERSE WORKFORCE

Our premier Leadership Development Program targets leaders
at the director level and above. Within the cohort of 2022
program participants, we’ve reached our target of having
women and under-represented minorities account for 40% of
the participants.

Our ERGs initiate mentorship platforms within NXP. For
example, our Women in NXP India chapter launched Building
Pathways, an internal networking platform for team members
to share inspiring stories and provide guidance on career
and well-being.

Through our ERGs, NXP regularly facilitates training on DE&I
topics. As an example, our Young Community and EQUALERGs collaborated on a panel to discuss diverse representationand positive action. These ERG-led sessions give our global
team members the opportunity to engage in open discussions
and create awareness of inclusive behaviors.

NXP also engages in professional development conferencesthat enable the continued growth of our diverse workforce.
In 2022, NXP team members have participated in the Texas
Conference for Women, the Black in Tech Conference, and the
Global Semiconductor Alliance’s Women’s Leadership Initiative.

Our ERG-hosted events are aimed at promoting careerdevelopment, enhancing business knowledge, and building
leadership skills.
For example:• Our Asian Cultural Team ERG hosted a discussion with NXP
Executive Vice President, Ron Martino, and NXP Fellow,
Tu-Anh Tran, where they discussed the key to successful
leadership and contributing to a high-performance culture.
Also, in 2022, our ERGs welcomed more than 20 external
speakers and organizations for professional development
and networking events.
• Our Black Achievement and Leadership Team ERG hosted asession with NXP CFO, Bill Betz, titled “All About Finance,”
which allowed Bill to share inputs about his role at NXP
along with information about the current financial climate
and the company’s financial strategy.

Looking Ahead
NXP will continue to enhance our diversity, equality, andinclusion efforts, define processes, and embed strategies
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 Insight andexpanding our Inclusion Insights library• Make progress toward achieving our 2025
representation targets

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
68PROVIDING COMPETITIVE AND FAIR COMPENSATION AND BENEFITSINTRODUCTION

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

2022 ESG HIGHLIGHTSCOMPENSATIONOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT

NXP provides team members with total rewards packages consisting of base salary and shortterm incentives for all team members, as well as equity-based long-term incentives for otherteam members. We offer locally competitive benefits aimed at supporting team members’
financial, physical, and mental well-being.
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 and long-term incentive awards,
to deliver on our pay-for-performance philosophy.
Since 2022, we have linked a portion of our executive and employee compensation to our
ESG goals. For more information, see our 2023 Proxy Statement and the “ESG Goals” sectionof this Report.
NXP has policies and procedures in place to promote pay equity. We perform pay reviews twicea year, alongside NXP’s rewards processes, to ensure we are delivering pay decisions with anappropriate focus on fairness. We developed this proactive process to evaluate each rewardbased compensation program in real time, to provide leaders with feedback to create more
visibility into fair and equitable compensation while decisions are being made. We also analyze
potential compensation recommendations or changes within functional areas and departments
in order make appropriate adjustments and promote pay equity. Review results 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, race, and ethnicity.
We believe that pay decisions should be made based on three factors: external considerations(i.e., market conditions), employee performance/contributions and internal equity. NXP utilizes
third-party data to formulate compensation and benefits programs that are fair, equitable, andcompetitive. We then empower leaders to recognize both individual and team accomplishments
through a variety of 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.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
69

PROVIDING COMPETITIVE AND FAIR COMPENSATION AND BENEFITSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

BENEFITSNXP helps our team members maintain theirhealth and financial well-being by providing
benefits that may include an employee stock
purchase plan (where eligible team members
can purchase NXP shares through payroll
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, andother employee-assistance programs.
We also offer a global Flexible Work
Arrangement program, which offers
eligible team members the ability to work
a combination of onsite and remotely.
Although our way of working focuses onmeaningful face-to-face interactions, wehave incorporated flexibility into our work
arrangements in a way that allows us tomaintain the focus on strong and effective
teamwork, collaboration, and community.

Americas Benefits Overview
NXP supports team members in Brazil,
Canada, Mexico, and the United Statesby offering a benefits program that
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 UnitedStates, we have medical and mentalhealth benefits for team members who
are transgender, and we also offer up to
five visits of back-up care (for children or
the elderly), tutoring for children, onsite
gyms or gym allowance, onsite healthchecks and flu shots, and time off forcommunity service and voting.

In some countries, we also support part-timework schedules, helping to promote overall
well-being and greater work-life integration forour team members.

APAC Benefits Overview
NXP supports team members in APAC
countries with benefit programs tailoredto the specific country. This can include
annual health and wellness checks,
medical-insurance coverage, hospital
coverage, and certain allowances,in addition to any statutory benefits.
Retirement benefits are available ateach site, with a mixture of pension
plans and defined-contribution plans.
At several NXP manufacturing sites,
we supply allowances for the purchaseof rice, as well as cafeterias serving
food, for the convenience of our teammembers. Certain sites also offer onsite
health centers and designated areas
for sporting activities and religious
practices. NXP supports cultural eventswith gifts and time off for Diwali,
the Dragon Boat Festival, andChinese New Year.

EMEA Benefits Overview
NXP supports team members in EMEA
countries with life insurance, personalaccident insurance and retirement(in line with local market practice),in addition to statutory benefits. We
have a variety of car-allowance andlease programs in the countries where
our customers are present. In several
countries, including France, the United
Kingdom, and sites 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 thatassist team members with commuting,meals, and other work-related costs.
We also support health/sports-related
activities and cultural events for ourteam members.

NXP’s benefits programs vary by country andregion. Below is an overview of some of thebenefits we offer in each region.

ENVIRONMENT

Looking Ahead

SUPPLIER ENGAGEMENT• We will continue to focus our total rewards programs on attracting,motivating, retaining, and rewarding our talented team members

PRODUCT STEWARDSHIP• We 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 employee well-being

APPENDICES
70

ENABLING TALENT DEVELOPMENT AND GROWTH OPPORTUNITIESNXP has a long history of empowering our team members to develop their skill sets and expand their capabilities.

INTRODUCTION

We have a strong commitment to continuous learning, and we understand that development happens when multiple learning
approaches come together. We believe that, by utilizing the 70/20/10 model, learning can achieve new levels through experience,collaboration, and education.

2022 ESG HIGHLIGHTSOUR BUSINESSOUR APPROACH: THE 70/20/10 MODELECONOMY70%

Learning Through On-the-Job Experience – On-the-job learning begins for team members on day one, withorientation, and continues, throughout their time at NXP, with regular and ongoing programs for growth anddevelopment, offered at both the local and global level. We work to create developmental opportunities for ourteam members through challenging stretch assignments, project roles, cross-functional interactions, cross-geography
engagements, and both temporary and longer-term job rotations – all of which are used to stimulate core skills,
develop leadership competency, provide on-the-job learning experience, and fuel the career growth of ourteam members.

20%

Learning Through Others – We believe some of the best career learning is gained by working with and observing
others, mentoring, and continuous feedback. Learning new skill sets from the industry’s best is both a foundational
learning strategy and an opportunity we use at NXP to develop talent. There are many programs our team members
can use to build relationships with peers and mentors and to enhance team-member development. We also have adeliberate and continuous feedback process for making sure that learning and improvement is a daily habit.

10%

Learning Through Education – Coursework is a vital tool, blending internally designed and externally sourced courses
and learning resources to provide our team members 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 theUnited States – where we cover a portion of the costs for team members to pursue degrees and/or certifications inapproved fields of study.

GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

71

ENABLING TALENT DEVELOPMENT AND GROWTH OPPORTUNITIESINTRODUCTIONGLOBAL ONLINE TRAINING6
Global Online Learning

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

Unit

2021

2022

Training Courses Completed

Hours

8,852

9,497

Online Training Hours

Hours

89,591

168,229

Average Online Training Hours

Hours

3.0

5.1

IDL

Hours

7.0

8.0

DL

Hours

0.2

0.6

Overview

Average Online Training Hours by Role

Average Online Training Hours by Gender

Overview

Women

Hours

2.2

4.1

Team-Member Engagement

Men

Hours

3.5

5.7

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Online training metrics include mandatory compliance training and team-member-elected training.

6

72

ENABLING TALENT DEVELOPMENT AND GROWTH OPPORTUNITIESINTRODUCTION

OUR LEARNING AND DEVELOPMENT PROGRAMS

2022 ESG HIGHLIGHTS

Examples of our current programs include the following (in alphabetical order):OUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

NXP has a wide variety of learning and development programs for our team members across the globe, including new offerings, introduced in 2022, and others to come in 2023.

• Code of Conduct – NXP is committed to being an
ethical company and a responsible business partner andemployer. Therefore, it is important that everyone whoworks for NXP understands and adheres to the values andprinciples reflected in the Code of Conduct (the Code) andincorporates these values and principles in their day-today activities. Annual Code of Business Conduct training is
mandatory for all team members and contractors with anactive email address.
• Leadership Development Program – Designed for moresenior leaders to continue to develop leadership capability
at NXP. This is a six-month, in-person experience designed
to enhance leadership effectiveness. Leaders participate inintensive, small-group coaching, workshops, and on-thejob practice. Together, class participants focus on theirindividual business challenges and leadership skills toachieve significant business results and, in the process,develop career-long relationships. Leaders attend a total offour two-day in-person workshops, scheduled across six tonine months, and, in between sessions, apply their learningin practice and participate in peer coaching.
• New-in-Career Development Program – Provides teammembers who are new to their career with the necessary
knowledge and tools to understand more about NXP, ourstrategy, our culture, and our values. You can read more
about this program below in the “Investing in Future
Talent” section.

• New Manager Essentials – New Manager Essentials is
an online learning journey that provides foundational
knowledge for all new managers, whether newly promoted
or newly hired into the role of people leadership. Throughthis program, managers study the NXP strategy andkey skills, such as communication, collaboration, andpsychological safety. In addition, managers learn the core
processes which they will use to lead throughout the year.
• NXP Citizen Data Scientist Program (CDSP) – Aims tomodernize our workforce with the latest training and tools
for data science. The CDSP is a 14-week introduction todata science and machine learning, requiring no previous
experience in these fields. Team members who participate
benefit from live and prerecorded lectures, mentoringfrom experienced data scientists, and cooperative handson development of a solution to a real and pertinent
NXP business problem. The program culminates in a twoday live Hackathon event, whereby each team finalizes a
proof-of-concept solution to their use case and delivers ashort presentation. Over the last four years, this program
has helped to upskill 73 Citizen Data Scientists from 12
countries and regions in 13 business domains, exploring
48 unique use cases.

• NXP Mentoring Program – We believe that every NXP
team member has wisdom and experience to share withothers. NXP is launching a global mentoring platformthat will let team members and leaders sign up to either
become or find a mentor. The platform will enable teammembers to locate peer mentors, subject-matter-expertise
mentors, career mentors, leadership-development mentors,
and reverse mentors, as well as program-specific mentors,
such as our School of Architecture and Women’s Network.
• NXP R&D Academy – To further develop the R&D
community, we expanded the NXP R&D Academy, offeringa variety of learning opportunities. We have dedicateddevelopment programs in the areas of architecture,functional safety, design quality, crypto and security,
artificial intelligence, and ideation. To learn more about
our work in this space, refer to the “Building Thought
Leadership” section earlier in this chapter.
• NXP Smarties – Competency-aligned development
guides that team members can use to self-assess their
behaviors against the 14 Korn Ferry Leadership Architectcompetencies, aligned to our NXP Values, and get tips on
how to further develop those competencies.

• NXP Manager Intensive – A three-day, in-person
experience designed to support managers in their role
to foster high-performance and engagement. Managers
learn how to enact and live the NXP values through ninecore management practices. Throughout this interactive
workshop, participants share experiences and learning witha cohort of up to 30 managers.

PRODUCT STEWARDSHIPAPPENDICES
73

ENABLING TALENT DEVELOPMENT AND GROWTH OPPORTUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPWe also offer a variety of sessions to benefit key audiences. For example:– NXP Operations – Throughout 2022, team members
participated in a number of training courses with a focus
on growing and developing.

○ Manufacturing-site learning activities, such as softskills development training through our ERGs,
Front-End Operations overview classes (all systems
and theories), external training, including vendor
and higher-education courses, along with mentor
assignments and tracked engagements for every newengineer in Operations.

• Team-Effectiveness Workshops – During these sessions,team members learn to understand more about themselves
and others using psychometric tools. In addition to learning
to work better with colleagues, they learn how to havemore open, positive conversations, use their strengths
with confidence, improve their development areas, andunderstand the value they bring to projects.

○ Mandatory Training: All team members go througha variety of programs related to Environment, Healthand Safety, Ethics, Quality, and Technical Training.

– NXP Sales – NXP business units and functions createdspecific training courses to increase the knowledge andawareness of Sales team members. For example:

Our customers are key to what we do. We value collaboratingexternally as a way of sharing our expertise with our customers
and design partners, but also as a development opportunity
for our own team members. We host and engage regularly
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 skill.

• Business and Function-Specific Training – We offer training
on a variety of topics, including project management,
business intelligence, and technical skills. Below are just a
few examples of training that falls within this focus area:○ Voluntary Training: We offer soft-skills training, forthings like critical thinking and decision-making,along with training on leadership skills, including our
NXP Manager Intensive Program, and site-specificlearning activities, such as our Team Effectiveness
Program.
– Assembly and Test – Team members participated in
more than 2,100 courses/sessions, totaling 36,000 hoursof training, which included:○ Programs such as Total Quality, a Green Belt andBlack Belt Program, and 3x5 Why Problem-Solving.
In 2022, the Assembly and Test Team certified two
master black belts and 13 green belts.
○ Manufacturing-site learning activities, such as Leader
as a Teacher, people spotlight, career roadshow, theSPOT ONE program on the transformation of a newera, Employee Assistance Program courses, and theSeven Habits of Highly Effective people.
– Front-End Operations – Throughout 2022, teammembers participated in more than 61,840 hours of
training, which included:○ Programs such as Total Quality, a Green Belt andBlack Belt Program, and 3x5 Why Problem-Solving.

○ NXP hosted 29 Franklin Covey personal-development
workshops for Sales Operations team members,
focused on building and maintaining extraordinary
productivity habits, unconscious bias, and leadershipeffectiveness. In 2022, 250 team members
participated in these sessions.
○ In 2022, additional sales training included earlyin-career and new-hire training in the Americas,
leadership development training for Sales leaders,
Sales Operations tools training, and technical training
focused on products and solutions for customer
application engineers. The team also renewed thetraining section of the NXP Sales portal to include
multiple new offerings and a new-hire curriculum for
Sales team members.

Looking Ahead
In 2023, NXP is excited to launch a global Learning
Management System that will enable full distributionof content creation and learning assignments. This will
enable NXP to get the right learning to the right people
at the right time.

• Periodic Webinars – Team members are offered theopportunity to attend live sessions to build theircommunication and professional skills such as the “Art ofFeedback” and “Giving and Receiving Feedback with a
Growth Mindset.”• Self-Service Resources – Courses on topics that help
team members develop personally and professionallyare featured in a centralized portal that houses all NXP
learning opportunities.

APPENDICES
74

INVESTING IN FUTURE TALENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

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

INTERNS

Our internship programs focus on the technical advancement and skills development students
need as they prepare to enter the professional workforce. In 2022, we continued to welcome
university students to NXP. We granted more than 1,100 internships to university students andconverted 39% of our interns into NXP team members.

NEW COLLEGE GRADUATES

Our internship programs build a highly capable and energetic pipeline of new college
graduates. In 2022, we were pleased to welcome more than 1,000 IDL new college graduates,
an increase over the 644 new college graduates we hired in 2021. These hires represent 23%
of our overall IDL hiring activity, in which 35% of new college graduate hires were women and
66% were underrepresented minorities in the US.

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion

IDLIDL
New
College
Hires
(HC)
New
College Graduate
Graduate Hires(HC)

Compensation and Benefits
1,500 1,500

Future Talent

1,250
1,250 1,500
1,000
1,000 1,250
750
19%
1,000
750
500 19%750
19%500 250
500
311
0
250
250
311 2018

Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTIDL New College Graduate 40%
Hires(HC)39%40%

NumberNumberof Peopleof People

Retention

Number of People

Development

0

0

30%

30%

30%

598

30%

30%

2019
2019

39%

30%

460

2019
2020
598
460
311
598
460
New College Graduates Hired

20182018

40%

2020
2020

College
Graduates Hired
Hired
NewNew
College
Graduates

50%

50%

39%40%
50%

40%

30%
40%
20%
30%
10%
20%

644

1,070

2021
2021

2022 2022

0%
10%
2021
2022 1,070
644
644
1,070
Intern Conversation Rate 0%

30%
20%
10%
0%

InternConversation
Rate Rate
InternConversation

PRODUCT STEWARDSHIPAPPENDICES
75

INVESTING IN FUTURE TALENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

UNIVERSITY PARTNERSHIPS AND ENGAGEMENT

Through our partnerships with universities across the world, we fund and support advanced research programs and projects that demonstrate our commitment to invest in people as well as
technology. Quite often, these partnerships translate into new and exciting solutions for our customers and markets.  
To drive deeper awareness and engagement with our university partnerships, NXP maintains a University Relations Council, which has the goal of driving a coherent and aligned approach towards
university partnerships by linking recruitment, global sales and marketing, and R&D programs. In 2022, we strengthened this global and local collaboration and successfully implemented many
initiatives and activities.
Our 2022 university funding and support was diverse, and allowed us to support advanced research programs and sponsorships, including the following:• ~80 university projects led by NXP – Projects in countries and regions across the globe,
including Austria, Belgium, China, Czech Republic, France, Germany, India, Netherlands,
Romania, the United Kingdom, and the United States, led by NXP and supported byvarious business lines and functions. As part of this engagement, NXP sponsors students,
professorships, and lab equipment.
• 70-plus projects with the Semiconductor Research Consortium (SRC) – Projects engaged
NXP liaisons in Canada, India, and the United States with university professors and students
on advanced silicon design, production, and manufacturing processes. These programs also
provided students with a path for technology transfer and expertise in the industry.
• EcoCar – A United States Department of Energy program that allows NXP to work with
12 universities across the US to develop more economical, environmentally friendly,
and connected vehicles.
• 2022 NXP Cup – Invites participants to an autonomous robotics and automotive challenge.
Participants build, program, and race a model car against other teams, aiming for the fastest
time with precise maneuvering. The 2022 event engaged more than 100 university teams in
Europe. The virtual events and live finals drew more than 2,300 views on YouTube.

• NXP HoverGames – A virtual coding and hardware challenge, incorporating NXP
technology in drones. The challenge takes place over several months and addresses someof the biggest challenges facing society, such as disaster management, health crises,
environmental protection, and wildlife preservation. NXP has engaged more than
313 teams (registrations ongoing), with a large number of participants from India andthe United States.
• 2022 NXP Smart Car Race Design Challenge – Engineering students in India spent twodays focused on artificial intelligence in mobility. Participants raced their driverless vehicle
prototypes on a virtual racetrack, using skills in the areas of coding, AI algorithms, sign
recognition, sensors, motion detection, camera vision, image processing, and more. Morethan 620 registered for the event from more than 24 states and 87 universities. Seventeen
teams of 57 students each were short-listed for the two-day grand finale of live races, withan in-depth evaluation from external judges.
• National University Students Intelligent Car Race – By sponsoring the “Intelligent Vision”
segment of this event, hosted by Chinese universities, NXP provided 680 students
and 354 teachers, from 200+ universities, with our specially designed products forimage classification.

Team-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
76

INVESTING IN FUTURE TALENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

UNIVERSITY AMBASSADOR PROGRAM

As we engaged virtually with universities throughout the
COVID-19 pandemic, we’ve learned that students seek
connections with our company that go beyond therecruiting team.
To help foster connections with students that go beyond therecruiting team, our University Ambassador Program invites
all team members to raise awareness at universities andencourages young professionals to join NXP.
As University Ambassadors, team members can connect
with potential student hires in a variety of ways, such as
speaking at job fairs, hosting guest lectures at universities, andengaging with students who are interested in getting handson experience through our internship program. In addition,
students can reach out directly to our University Ambassadors,
through campaigns organized by NXP, to ask about theirexperiences as an NXP team member. There is a direct benefit
to those participating, and students and ambassadors are often
both enriched.

NEW-IN-CAREER DEVELOPMENT PROGRAM

We believe early success in a career significantly drives the
future success of our company. The first months of a new job
can seem daunting. With this in mind, the company has a
New-in-Career Development Program focused on supporting
emerging professionals in their transition to the working world.
The aim of the New-in-Career Development Program is toprovide our team members who are new in their career with
the necessary knowledge and tools to understand more about
NXP, our strategy, our culture, and our values. In addition, teammembers receive guidance on developing the professional
skills they will need to successfully drive their development andreach their career goals.
As part of this program, new-in-career hires also receive an
onboarding gift to make them feel welcome and a part of the
NXP team.

COUNTRY AND REGION-SPECIFIC PROGRAMSFOR FUTURE TALENTNXP empowers our leaders and teams to create and launch
programs that target the individual needs of future talent in a
specific country or region.

Our Campus Connect Program in India helps NXP reach out touniversity faculty and students to share a technical overview ofcurrent topics of interest in the semiconductor, electronics, andembedded sectors. The program aims to provide opportunities
for academia, through multiple focused tracks of technicalwebinars, hackathons, and proof-of-concept solutions, tosolve current problems and create a partnership between thebrightest university talents and experienced industry experts.
Ultimately, the program helps pave the way for a seamless
transition into their career.
We also have a Virtual Campus Connect Program in EMEA,
which is a virtual event aimed at university students andgraduates from our tier-one universities in the EMEA region.
This initiative gives students and graduates the chance to learn
more about NXP’s breakthrough innovations, our culture, ourvalues, and our career opportunities.
Similar virtual sessions have been held in China, the UK, andthe US, where NXP ambassadors shared company insights withtargeted universities, reaching 20,000 students and graduates,and garnering approximately 200 direct applications.

Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
77

FOCUSING ON TEAM-MEMBER RETENTIONINTRODUCTION

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

2022 ESG HIGHLIGHTS

GlobalTurnover
GlobalVoluntary
Voluntary Turnover

OUR BUSINESSGOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent

12.1%
Global Voluntary Turnover
12.1%

4,000
4,000 5,000
NumberNumberof Peopleof People

ECONOMY

Number of People

5,000 5,000

3,000
2,000
1,000

0

3,000 8.5%
4,000
2,000
3,000
1,000
2,000
0
1,000
0

8.5%

7.8%

7.8%
8.5%

2,352

2,3522018
2,352

20182018

7.8%

2,151

12.1%
6.9%

11.7%

11.7%
15%
10%
11.7%

6.9%

1,903

2020
2020

GlobalVoluntary Turnover
Turnover
GlobalVoluntary

15%

10%

10%
5%

6.9%

2019
2020
2,151
1,903
2,151
1,903
Global Voluntary Turnover

2019
2019

15%

3,472

3,674

5%
0%

2021
2022 3,674
3,472
3,674
Percentage
0%

3,472

2021
2021

2022 2022

Percentage
Percentage

5%0%Voluntary turnover varies by country, and our turnover rate remains below the competitive
benchmark in each country where we have team members. 2021 and 2022 had higher turnoverrates than previous years, but these increases can be explained by conditions in the individual
markets where our team members reside. We continue to drive programs centered aroundretention actions for strategic roles and top-performing talent, as well as programs targeting allteam members, including the following:• Global flexible work arrangements – We incorporate flexibility into our work style byallowing qualified team members work onsite and remotely. Participating team members
follow a defined process for their respective country. This new way of working offers apositive 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. Each country has well-being embedded into
its internal communications, team-building activities, and local celebrations. This year,
we also introduced global Recharge Days, which encourage NXP team members to taketime off or enjoy no meetings in the days surrounding select company holidays and local
celebrations. In 2022, these days coincided with regional holidays, allowing for paiddays off several times a year for our teams to rest, recharge, and refocus. We also offer
benefits programs throughout the world that are aimed at physical, emotional, andfinancial well-being.
• Consistent communications and business updates – This includes quarterly town-hall
meetings, small group sessions between NXP team members and leaders, and regular wellbeing check-ins led by NXP managers to ensure team members are thriving.

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

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

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
78

HEALTH AND SAFETY
INTRODUCTION

LONG–TERM AMBITION

2022 ESG HIGHLIGHTS

Achieve Zero Workplace Injuries
and Illnesses

OUR BUSINESSECONOMY
GOVERNANCE

2022 HEALTH AND SAFETY PERFORMANCE

ESG

Maintained a Low Total Case
Incident Rate (TCIR) of 0.10

OUR TEAM MEMBERS
Overview
Team-Member Engagement

NXP is committed to ensuring a safe and healthy workplace for our team members, partners, and visitors. Despite increased
demand for our products in 2022, which led to an increase in production activity, we maintained a low injury rate that remains
among the lowest in the industry.
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 to safeguard
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 Systemprocess, 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 safety survey, 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.
We continued to manage the impact of the COVID-19 pandemic on our team members and workplaces. While many sites have
moved forward due to the prevalence of vaccines, some sites and team members were still impacted by the COVID-19 pandemic
in 2022. We continue to monitor at the local level and adjust our policy as needed.

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future TalentISO

ISO 45001 Management
System Certified

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Continued Focus on Worker
Safety Councils

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
79

HEALTH AND SAFETY
INTRODUCTIONHEALTH 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 andmental wellness, as described below:

2022 ESG HIGHLIGHTSOUR BUSINESSAll 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 team members. We offer
comprehensive health-insurance plans, and many of our sites organize annual physicals and preventative health screenings, including flu shots.

MEDICALECONOMY
GOVERNANCE
ESG

PHYSICAL

Several of our global sites offer subsidized gym-membership plans, access to fitness classes, and/or onsite fitness facilities. In addition to physicalfitness, we offer programs and guidance on nutrition, weight loss, and avoiding unhealthy habits, such as smoking, drinking, 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 withmajor life events. In addition, our Human Resources team members are available to help address other workplace concerns. NXP also offers a variety ofinternal and external online resources addressing various life events.

OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership

EMOTIONAL /Diversity, Equality, and Inclusion

MENTAL

Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPSAFETY PROGRAMS

All our manufacturing sites have Health and Safety experts who specialize in supervising protective measures and creating safe and ergonomically friendly workplaces. All areas of the workplace areincorporated, including areas of production, offices, labs, and other technical areas.
Our proactive safety initiatives include:• Employee Emergency Response Teams that perform regular training and drills• Active participation of non-management team members in site-level safety committees/councils• Multiple grievance mechanisms available to team members that enable anyone to report 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

APPENDICES
80

HEALTH AND SAFETY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership

GOVERNANCE

The governance of Health and Safety lies within the EHS Management Board, which consists ofexecutives and senior leaders who define the development, approval, purpose, value, strategies,
policies, and goals, along with the metrics used to gauge the success of each plan.
Corporate EHS and the Global EHS Leadership Team collectively establish risk-mitigation
strategies and develop and deploy standards, programs, and procedures to reduce risks tohealth and safety worldwide.
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.
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 and demonstrate ourcommitment to safety. These committees meet regularly to assist with hazard identification
and risk assessments, investigate incidents, implement EHS policies, identify opportunities forcontinuous improvement of the EHS Management Systems, and take an active role in safety
awareness and training.

CERTIFICATION

We ensure the health and safety of our team members by using advanced
management systems and certifications that enable adoption and consistent
implementation on a global scale. All manufacturing sites, as well as ourheadquarters, are certified to the ISO 45001 standard for Occupational Health and
Safety, and are audited both externally and internally for third-party certification. Our
non-manufacturing sites follow our internal procedures related to Health and Safety and arealso periodically audited. These audits help us control our risks and improve performance while
protecting the well-being of our team members.
The benefits of ISO 45001 include a greater emphasis on worker participation and consultation,
ensuring workers are able to join in all parts of the Management System process, including risk
and hazard identification, incident investigation, and awareness programs. As a result, all teammembers are empowered to help create a safer work environment.

Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
81

HEALTH AND SAFETY
INTRODUCTIONEVALUATION
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 likelihood of a given
occurrence and proactively mitigate risks and hazards throughprograms, procedures, and engineering controls.

Company-wide, NXP trains our team members to ensure they
are equipped with the skills and knowledge to perform theirfunctions safely. This includes job-specific and site-specifictraining, on-the-job training, and specialized training that
includes chemical handling, chemical management andsafety, emergency response, ergonomics, and other safetyrelated topics.

SELF-ASSESSMENTS

VALIDATIONRISK ASSESSMENTS
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPTRAINING

During annual EHS self-assessments, each site completes achecklist that evaluates the Management System elements of
the ISO 45001 standard. To address issues, each site createsa corrective action plan and closes out the nonconformances
accordingly. As part of our membership in the Responsible
Business Alliance (RBA), each manufacturing site also
completes an RBA Self-Assessment questionnaire that, among
other topics, addresses health and safety as well as elements ofthe management systems.

AUDITSThe EHS and Social Responsibility teams use external audit
firms to conduct internal EHS-related audits. These selected
firms are experts in the standards for EHS Management
Systems and NXP Social Responsibility Standards.
Internal EHS audits are typically conducted approximately
every 30 months and audit nonconformances are categorizedaccording to severity.
Our registrar, Lloyd’s Registrar Quality Assurance (LRQA),
conducts third-party audits each year to evaluate corporate
EHS and, on average, assesses two manufacturing sites per
year as determined by LRQA. In 2022, NXP was recertified
to the ISO 45001 standards with a more detailed audit atfive locations, including our headquarters. LRQA used a
combination of onsite and remote audits, as dictated byinternal and/or local gathering requirements, to audit asampling of compliance and management systems. A formal
report was issued, and corrective actions are being tracked
until LRQA indicates they have been satisfactorily closed.

The Sustainability Office validates the information enteredin the Health and Safety database. Validation consists of thefollowing steps:• Check for completeness of data (sites and parameters)• Compare data from the reporting period with data fromprevious periods• Determine whether changes in data are significant• Seek explanations for significant data changes• Compare related data (e.g., number of illnesses and injuries
versus lost workdays)• Investigate notable eventsThe EHS Teams at each manufacturing site meet weekly withthe senior manufacturing management to review performance,
the progress of improvement projects, and expectations foreach project milestone.
To ensure reliable and accurate reporting, we conduct internal
audits of our manufacturing sites, large offices, and R&D sites,
checking for proper reporting procedures and data trails.

APPENDICES
82

HEALTH AND SAFETY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

RESULTSIn 2022, 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 work-related
accidents for our workers or contractors.

INJURY RATE

We maintained a low Total Case Incident Rate (TCIR) of 0.10 in 2022, 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, ranges from 0.38 to 1.03. NXP’s low injury rate is attributed to the robust Healthand Safety programs we have in place at all our manufacturing sites and our EHS awarenessinitiatives at many of our office and R&D sites.

Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Total Count

Total Case Incident Rate (TCIR)OUR TEAM MEMBERS

Thought Leadership

Number of Occupational Illnesses and Injuries
50

40

1.2

Team-Member Engagement

Each year, the number of occupational illnesses and injuries and the number of hours worked
vary. We continue to maintain our benchmark-low number of occupational illness and injuries.
We attribute this to our ongoing focus on preventative measures. In 2022, we saw a slight
uptick in recordable injuries as we returned to pre-COVID-19 pandemic staffing levels. We
will continue to investigate all work-related injuries to determine root causes and corrective/
preventative actions.

Injury Rate

ESG

Overview

OCCUPATIONAL ILLNESSES AND INJURIES

1.0

30

20

0.8
10

0.6

0

0.4

2015

2016

2017

2018

2019

2020

2021

2022

0.2

0

2012

2013

2014

2015
ESIA

2016

2017
SIA

2018

2019

2020

2021

2022

NXP

ENVIRONMENT
SUPPLIER ENGAGEMENTTCIR is a measure used by the US Occupational Safety and Health Administration (OSHA) tomonitor 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 toidentify patterns across different manufacturing and non-manufacturing sites.

PRODUCT STEWARDSHIPAPPENDICES
83

HEALTH AND SAFETY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

SEVERITY RATE

The severity rate indicates the seriousness of injuries. It is a calculation that describes the numberof 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.

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, and categorizing
injury types to help identify corrective actions.

Although our severity rate ticked up in 2022, the overall severity rate continues to trend
downward. An increase in severity rate can be due to just one or two incidents where additional
medical time off is needed. We continue to look for preventative measures to reduce thenumber of incidents. Our successful efforts to share and communicate issues and root causes
across all sites are reflected in our ability to remain below the industry average for severity rate,
which historically ranges from five to eight.

InjuryOccurrenceby Workplace
Workplace
Environment
InjuryOccurrence byEnvironment

ESG

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention

97%

97%
97%
Manufacturing

8

Manufacturing
Manufacturing

Community Outreach

Non-Manufacturing

Non-Manufacturing
Non-Manufacturing

6

Injury by Category

4

100%

3%
12%

14%
24%

2

14%

75%

Health and Safety
Human Rights

3%

Severity Rate

10
Days Away From Work x 100 / Working Hours

OUR TEAM MEMBERS

3%3%

Injury Occurrence by Workplace Environment

0

2015

2016

2017
ESIA

Team-Member Demographics

2018

2019
SIA

2020

2021

12%

4%
12%

7%
20%

10%

7%

16%

39%

36%

6%
8%

22%

50%

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

NXP in Action

38%
23%

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 theprivate industry and federal agencies who have implemented effective management
systems for health and safety, and maintain injury and illness rates below national Bureauof Labor Statistics averages for their respective industries.

23%

0%

40%

14%

34%

18%
25%

20%
19%

25%
24%

36%

3%

56%

ENVIRONMENT

24%

3%

31%

29%

28%

29%

2022

NXP

23%

26%

33%

33%

32%

26%

25%
16%
4%

2013

2014

Ergonomics

2015

2016

Slips and Falls

2017

2018

Machine Safety

2019

2020

2021

Chemical Incidents

2022
Other

APPENDICES84

HUMAN RIGHTSINTRODUCTION

2022 HUMAN-RIGHTS PERFORMANCE

2022 ESG HIGHLIGHTSOUR BUSINESSHuman-Rights Due Diligence
14 Supply-Chain Due-Diligence Audits in 2022

NXP recognizes that our operations can impact the human rights of our team members,
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.

LABOR AND HUMAN-RIGHTS COMMITMENTS
ECONOMY
GOVERNANCE

External Engagement
Sharing Practical Approaches to Labor andHuman-Rights Challenges

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership

HUMAN-RIGHTS DUE DILIGENCE
Due-Diligence Results
Instances of Working-hour Challenges, Recruitment-Related Fees
Paid by Workers, and Insufficient Rest Days

Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

NXP collaborates closely with our business partners to proactively and transparently identify
and address potential human-rights allegations and prevent or address credible human-rights
abuses. The scope of this commitment includes, but is not limited to, the transportation,
harboring, recruitment, transfer, or receipt of persons by means of threat, force, coercion,
abduction, fraud, or payments to any person having control over another person for
exploitation. This commitment is reflected in the NXP Human Rights Policy published in 2022.
The Policy was prepared by the NXP Sustainability Office, under the supervision of the ESG
Management Board and approved by the Board of Directors.

Labor and Human-Rights Commitments
Published NXP’s first Human Rights Policy in 2022

To identify potentially adverse human-rights impacts and put in place prevention andmitigation measures, in 2022, we updated the NXP Human Rights Management System. The
Management System provides clear guidance on how human-rights due diligence is to be
conducted across our business value chain. We use input from internal and external resources
to inform our approach and responses.
Due diligence is an integral part of our business decision-making and risk-management
systems. Our in-place due-diligence processes respect the way we manage labor and humanrights, health and safety, and environmental risks associated with our operations and supply
chain. Such due diligence includes risk assessments, compliance monitoring, remediation, andconsultation and engagement with workers, management, and other key stakeholders, as wellas measurement and public reporting.

Team-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES85

HUMAN RIGHTSINTRODUCTION

NXP examines human-rights risks on a continual basis, and relies on stakeholder feedback and engagement whenevaluating these risks.

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

IDENTIFY
AND ASSESS• Supplier risk assessment• Self-assessment questionnaire• Audit• Collaboration and engagement with stakeholders andhuman-rights experts• Review and assessment of previous due-diligence results

INTEGRATE
AND ACT• Policies, standards, and tools• ESG Management Board• Capacity-building• Collaboration with Purchasing Team• Monthly post-audit follow-up calls

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

COMMUNICATE• SpeakUp hotline• Worker-management dialogues and focus-group discussions• Internal and supplier grievance mechanisms• Annual reporting

GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES86

HUMAN RIGHTSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

SALIENT HUMAN-RIGHTS RISK ASSESSMENT

In our operations and our supply chain, we use indirect labor,
direct labor (including foreign migrant workers), temporary
workers, and agency workers. We engage with all relevant
functions and businesses across NXP and our supply chain to
identify practices that may lead to non-compliance with ourpolicies and standards.

No Fees

The Social Responsibility and Procurement Teams identify
salient human-rights risks using our own risk analysis, ourcollaboration and engagement with key stakeholders –including industry associations, expert groups, and nongovernmental organizations (NGOs) – and the results from our
supplier assessments and audits. The following are the issues
within NXP and our supply chain we determined are mostcritical to labor and human rights.

Retention ofDocuments
Fair Wages
Forced andBonded LaborOUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent

Accurate
Contracts

Fair Treatmentof Vulnerable
Workers

Salient
Human-Rights
IssuesRetention

Working Hours
and Rest Days

Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT

Young Workers

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES87

HUMAN RIGHTSINTRODUCTION

We minimize human-rights risks by making continuous improvements, to our policies, strategies, collaborative capacity-building,self-assessments, and audits, within NXP and our supply chain, based on our own experiences, shared industry best practices, andemerging issues, trends, and developments.

2022 ESG HIGHLIGHTSNO FEES• A clear policy prohibits charging fees to workers and ensures compliance.
• If workers are found to have paid fees to gain employment, reimbursement toworkers must be completed within 30 days of discovery.
• A grievance mechanism is in place to confidentially report policy violations.

RETENTION OF
DOCUMENTS• 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.

OUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

FAIR TREATMENTOF VULNERABLE
WORKERS

Development
Future Talent
Retention
Health and Safety• The well-being and health and safety of workers must be ensured during pandemic
and post-pandemic conditions.
• Workers must not be discriminated against, regardless of pandemic circumstances.
• Workers must continue to be given adequate protection from exposure to hazards,
including the pandemic illness.
• A grievance mechanism is in place to confidentially report unfair treatmentof workers.

Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPWORKING HOURSAND REST DAYS• 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 aswell 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.

APPENDICES88

HUMAN RIGHTSINTRODUCTIONYOUNG WORKERS
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE• The term “child” refers to any person under the age of 15 or under the minimum age for employment in the country,
whichever is greater.
• A comprehensive policy for child labor clearly states the minimum age for workers.
• A comprehensive policy prohibits young workers under the age of 18 from performing work that may jeopardize theirhealth or safety, including night-shift and overtime work.
• An age-verification process is in place with inspection of validity of at least two identity documents, to be
returned to worker.
• Personal-record systems are in place as a means of identification and verification.
• If workers are discovered to be below the legal age limit, workers will be protected and provided the opportunity forcompletion of education.
• A grievance mechanism is in place to confidentially report policy violations.

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement

ACCURATECONTRACTS

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent• Contracts may not violate relevant laws or place a worker at risk.
• Prior to departure or hiring, workers are provided with an accurate written employment contract with details of working
conditions including nature of work, wages, benefits, and duration of contract.
• Contracts are written in a language that the worker understands prior to employment. If amendments are made prior
to employment, the contract must provide equal or better terms of employment.
• Contracts ensure workers are free to leave their employment, upon giving reasonable notice, without penalty perapplicable law and regulations.
• A grievance mechanism is in place to confidentially report contract-related information.

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPFAIR WAGES• Workers cannot receive less than the legal minimum wage for all regular hours worked. If legally minimum wage is not
set, then industry prevailing wage will be the standard.
• Overtime rates are to be applied to the base wage as required by law or employment contract, whichever is higher.
Where the law is silent, the premium must be at least an additional 50% per hour of the base wage for piece rate andhourly work, or an additional 50% per hour of the average earnings.
• Workers have wage slips in a language they understand, with clear details regarding regular and overtime hours
worked and rates.
• Wages are paid within 14 days after the end of the working period.
• Deductions as a disciplinary measure are prohibited.
• There is a grievance mechanism to confidentially dispute wage and benefit-related payments.

APPENDICES89

HUMAN RIGHTSINTRODUCTIONSALIENT HUMAN-RIGHTS ISSUES: 2022 RESULTS
Our Operations

Our Supply Chain

No FeesWorkers did not pay fees.

35% of audited suppliers charged hiring fees. All but two suppliers refundedthese fees. Dialogue to close the one nonconformance is ongoing.

OUR BUSINESS

Retention of Documents

Personal documents are retained by workers.

Of 14 suppliers, all have returned personal documents to workers.

ECONOMYFair Treatment ofVulnerable Workers

While the hiring of foreign migrant workers at NXP slowed due to theongoing COVID-19 pandemic and border closures, NXP continued to comply
with our Employer Pays policy, which ensures these workers are treated withrespect and dignity during recruitment and hiring.

The resumption of supplier audits enabled NXP to interview workers andgauge their well-being during the pandemic. No serious issues have beenreported, even though workers were provided with the NXP anonymous
phone line to report any concerns or impacts to their rights.

Working Hours and Rest Days

At one site, the 60-hour working limit was exceeded for approximately 900
workers, or 30% of the site's direct-labor workforce, for a period of one
week. This was due to the continued labor shortage, challenges in hiring
foreign migrant workers, and a border closure during a significant increasein production demand. The site was able to resolve the issue quickly byefficiently allocating the workforce to support production.

64% of audited suppliers did not monitor working hours and rest days,
resulting in nonconformances against NXP’s requirements. Four suppliers
have yet to close this nonconformance.

Young Workers

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

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

Accurate Contracts

Accurate contracts issued to all workers in their native language.

42% of audited suppliers had inaccurate contracts. All suppliers, except one,have closed this nonconformance.

Fair Wages

No discrepancies in wages or benefits.

21% of audited suppliers had discrepancies in wages and benefits.
All suppliers have closed this nonconformance.

2022 ESG HIGHLIGHTSGOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENTHUMAN-RIGHTS ACHIEVEMENTS

NXP’s Social Responsibility Program was again recognized in 2022 for its work in addressing
modern-day slavery issues within NXP operations and our supply chain.
The Asia-Pacific UN Forum on Business and Human Rights invited NXP to be a featured panelist
in a session about access to remedy for vulnerable workers during the COVID-19 pandemic.
We described our work in the supply chain and our efforts to help foreign migrant workers, who

are some of the most vulnerable to human-rights abuses during a crisis such as the COVID-19
pandemic and post-pandemic challenges. We also offered a proposal for how businesses cancollaborate with governments and civil-society organizations to address human-rights
challenges for foreign migrant workers and how these workers can get access to grievancemechanisms and remedies.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
90

GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYWe believe in making a positive difference in the communities where we live and work. We arecommitted to supporting these efforts across the globe and encourage our team members togive generously of their time, resources, and talents to impact our communities. Many major
NXP sites have their own volunteer and donation programs that emphasize education, poverty,
hunger, health, and well-being within their respective communities.

ALIGNMENT WITH THE UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS (SDGs)
Our community-outreach activities focus on the following four SDGs:

GOVERNANCE
ESG

No Poverty

Zero Hunger

OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits• Donations and volunteerism
to support povertystricken communities anddisadvantaged youth• Clothing donation drives• Food-pantry volunteer service,donations, and fundraisers

Development
Future Talent
Retention
Health and Safety

Good Health andWell-Being

Quality Education

Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT• Financial support andvolunteerism to help those
impacted by the COVID-19
pandemic• STEM skills-based training• Mentoring and volunteering at local
schools and local organizations• Donating equipment and supplies tosupport learning and development
opportunities

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
91

GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSRESPONDING TO HUMANITARIAN SUPPORT EFFORTS

As a global company, NXP is committed to responding to and supporting our team members and those impacted during times of crisis and humanitarian need. When the Russia-Ukraine war
unfolded, the company’s Crisis Management Team began monitoring the situation closely and developed contingency plans to address employee safety and propose options for offering assistance.
NXP donated $250,000 USD to the United Nations Refugee Agency (also known as the United Nations High Commissioner for Refugees or UNHCR). Local teams across NXP also organized anumber of spontaneous relief initiatives to show support and compassion for the people of Ukraine.
Examples of this support include:

ECONOMY
GOVERNANCE

Belgium• Donated 60 laptop and 15 desktop computers to the Digital for Youth organization, tohelp ensure that young refugees from Ukraine had access to education.

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT

Czech Republic• Hosted three bake sales during the year to benefit the Red Cross and local
Ukrainian refugees.
• Donated $10,000 USD to transition a local kindergarten gym into a fully functioningclassroom for use by 17 Ukrainian refugee and local families for the duration of the
Ukrainian crisis.

Netherlands• Supported Ukrainian refugees in several ways, including converting a local nursing
home into a refugee shelter (with tables, chairs, and 110 beds), donating 140 laptops
to aid children’s study needs, and partnering with local organizations to collect goods
and clothing (i.e., Jeans Donation Drive) to benefit women, men, and children.

United Kingdom• Donated £2,500 to Disaster Emergency Committee Ukraine Appeal.

• Donated laptops to several local organizations working with socially disadvantaged
kids and Ukrainian refugees.
• Donated $10,000 USD to the Naděje charity organization to provide local
accommodations, furniture, and other needed items for 30 refugee mothers andtheir children.
• Collected and donated much-needed supplies and goods for Ukraine, including
food, hygiene and cosmetic supplies, and inflatable mattresses and sleeping bags.
Donations went to support various charitable organizations, including
ADRA International.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
92

GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSTEAM MEMBERS IN ACTION

NXP team members are passionate about having a positive
impact on our local communities. Across the globe, our teammembers are generous with their time, resources, and talents
to make a difference in the areas in which we work and live.

GOVERNANCE

Throughout the year, team members supported a varietyof community and/or non-profit organizations. They gave
their time and resources to events that promoted STEM
education, offered food, clothing, computer equipment, andbasic necessities to those in need, helped to beautify theenvironment, supported local blood drives, and more.

ESG

The following list is just a sampling of the selfless acts teammembers performed in 2022.

OUR TEAM MEMBERSINVESTING IN STEM EDUCATIONECONOMYOverview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights

Mainland China• Graduated the first NXP class from Tianjin University(TJU) in June 2022. Based on TJU course architecture,
the course combined theory with NXP’s application
examples, practical experience, and technology
trends from the market. Students in the NXP classbenefited from the company’s strong positions in AI
and the Internet of Things (IoT), which are supported
by a full product portfolio and extensive technology.

Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Germany• Supported mint: pink, a program that helps highschool-age girls develop an interest in STEM work.

India• Launched Artificial Intelligence in Mobility (AIM), a
new initiative focused on creating awareness andenthusiasm in the field of artificial intelligence via asmart-car race for engineering students. Technicalleaders taught students how to program embedded
controllers and encouraged participants to explore
the world of AI for automated driving.
• Hosted Campus Connect, which helps createstrong partnerships with universities by offering
students technical information on various topics
of interest in semiconductors, electronics, andembedded-system design.
• Presented Tech Start Up, an annual challenge fortechnology startups in India that emphasizes NXP
technologies and applications. The platform offers
participants opportunities to collaborate with industry
leaders, boost their growth prospects, and increase
their global visibility and network scalability.
• Promoted Women in Technology (WiT), a new, yearlong program, hosted by industry experts, thatoffers specialized training to 50 women engineering
students. The aim is to encourage young womenand mentor them toward a successful careerin the industry.
• Hosted the Young Innovator Design Challenge(YIDC), a one-of-a-kind challenge for the children
of NXP India team members, featuring themesthat encourage participants to design embedded
innovations using NXP semiconductor chips
and microbit kits.
• Offered a financial contribution to Indian Institute ofTechnology of Hyderabad (IITH) to support a STEM
training program for youth in higher education.

APPENDICES
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GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS

Malaysia• Collaborated with Monash University to support
technical-degree students, working on their finalyear projects, and PhD candidates. This collaboration
creates a talent pipelines for NXP Malaysia, as
candidates have the opportunity to be converted into
NXP positions at the end of each project or program.

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Mexico• Sponsored, for the seventh year in a row, theTechnovation Challenge, which gives girls ages 10 to18 programming and entrepreneurship experienceby having them design, over a three-month period, amobile application that solves a community problem.

Netherlands• Contributed to Project Computational Thinking,which helps teachers stimulate the developmentof computational thinking in schools. The project
involved 20 schools, the Junior Technovium
educational institution, the Devlab research alliance,
the Fontys and HAN Universities of Applied
Sciences, and NXP. Twenty NXP team members also
volunteered for the project.
• Hosted the NXP Weekend School, during whichchildren ages 10 to 14 are welcomed onto the NXP
campus to learn about a variety of professions. Ina targeted half-day session, NXP explains what asemiconductor chip is, what it can do, how many
details it contains, and how small these details must
be to fit. The children also tour the facility and learn
how to make flashing lights from LEDs.
• Participated in Girls Day, where the company opens
its doors to girls ages 10 to 15 to introduce themto science and technology. The students toured thefacility, witnessed product demonstrations, enjoyedlunch, and heard team members talk about theirexperiences working in a high-tech company like NXP.
• Engaged students in a high-tech summer camp, in
partnership with local organization Stichting Meneer
Rick. More than 100 students were introduced to theworld of technology, played sports and games, andlearned about NXP and other companies.

ENVIRONMENT
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2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Taiwan• Partnered with the mentoring programs of two top-tier STEM universities, National
Cheng Kung University (NCKU) and National Tsing Hua University (NTHU), to develop
the students’ skills for their future careers. Over a six-month period, students usedclassroom training to enhance their knowledge of the semiconductor industry while
also working on personal development and professional preparation.
• Sponsored two Maker + Hacker competitions, organized by three leading universities,
National Taiwan University (NTU), NTHU, and National Yang Ming Chiao Tung
University (NYCU). Nearly 500 participants, competing in 88 teams from different
universities, took part in the competitions.

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

United Kingdom• Operated a STEM team, whose primary goal is to help inspire our young people tohave a genuine passion for STEM, our industry and NXP, and to provide guidance,
direction, and support to help maximize potential. The team hosts an annual workplacement program, where young people visit the site each week during the academic
year. During the visits, the students have mentors, who support them in developing a
STEM-based activity that is shared with local high schools. The project culminates in acompetition, with the finals held at the NXP Glasgow site.
• Supported the 2022-23 Girls in STEM program, helping four girls interested inengineering careers develop a drone-based workshop. Other activities included
flying-car competitions with local high schools, supporting career fairs and innovation
days, and providing support for teams of partner schools entering national STEM
competitions, such as Teentech and the Landrover Challenge.

United States• Partnered with local FIRST Robotic Competition (FRC) teams to host STEM-based
summer camps:– NXP Austin partnered with the Westlake High School FRC 2468 team to hostsummer 2022 STEM camps for the children of NXP team members.
– NXP Chandler held a summer 2022 STEM camp in partnership with Red Mountain
High School’s FRC 2403 team. The three week-long camps introduced third- to fifthgrade students to robotics concepts using Lego EV3 and Sphero programmablerobots, and introduced sixth- to ninth-grade students to higher levels ofprogramming, computational thinking, and software development.
• Awarded a Grant to the Chandler Public Library. The grant from NXP Chandler helped
build the library’s STEAM Experience installation, which is an immersive experience,
housed in specially prepared cases, that offers interactive STEAM activities that letchildren ages 6 to12 create, play, and learn. NXP volunteers supported the laser
cutting and assembling of the cases.
• Sponsored The Tech Challenge, a program of The Tech Museum in San Jose, that
invites students in grades 4 through 12 to use an engineering design process to solvea real-world scenario.
• Engaged NXP Encourage Resources Groups in activities to promote STEM awarenessand engagement:– The Black Achievement & Leadership Team (BALT) ERG in Austin partnered with
NASA and the Austin Professional’s chapter of the National Society of Black
Engineers to host a workshop in their FreshStart Program. The interactive workshop
introduces STEM concepts to youth and provides parents with insights on how to
support their student’s STEM journey.
– The Hispanic Education Awareness Team (HEAT) employee resource groupchapter in Austin volunteered at El Buen Samaritano’s youth summer STEM camp.
Volunteers performed live demos of NXP-powered products and taught students
about the semiconductor manufacturing process using a volunteer-made coloring
book.

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GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

GIVING
Austria• Donated meal coins and money to benefit the Caritas
kindergarten class in Graz to help purchase newclassroom furniture.
• Contributed to the creation of the Herberstein Animal
Park’s Tierisch (“beast”) App, which shares insights
on park wildlife and quizzes visitors. The app features
NFC technology from NXP Gratkorn.
• Donated used laptops to a school project in Ghana.
• Made an annual donation to the local Red
Cross organization.

Mainland China• Donated 100 laptops to local organizations –including Educating Girls of Rural China and the Pridefrom the Mountains organization – to support theonline learning needs of students when schools wereclosed during the COVID-19 pandemic.
• Donated clothing, books, and stationery to
students in Guangdong Yao Autonomous County
Yuexiu Elementary School and Qinghai Huangnan
autonomous prefecture.
• Provided financial donations to benefit theanti-epidemic program of Shanghai Overseas
Chinese Foundation.
• Donated 100 new jackets to the Shanghai West
Tianmu Road government for distribution to elderly
people in need.

Czech Republic• Hosted four blood-donation events, with each event
providing about ten liters of blood, an amount thatcan save as many as 30 lives.
• Provided financial support to two local organizations:
the Tree of Life, a mobile treatment unit supporting
those who are terminally ill, including some children,
and Salamander, a local organization for naturepreservation in the Beskydy region.
• Donated $2,000 USD to be used toward the purchaseof a van for HOPE, a local charity that offers daily
support to autistic adults.
• Donated gently used books to be sold, with theproceeds benefiting the local ADRA International
charity organization.

• Participated in a blood donation drive, organized by
the Shanghai Blood Center, that engaged more than
35 Shanghai team members.
• Donated RMB 25,000 to the Red Cross of China. The
funds were donated by NXP in Tianjin and will be
used to improve the living conditions of local people
in remote mountainous regions.

France• Continued to promote the inclusion of disabled
people through the sale of products crafted bythose with disabilities in Toulouse, Sophia-Antipolis,
Caen, and Saclay. The teams also organize an annual
Christmas toy donation for disabled children.

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
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GOVERNANCE

Germany• Participated in regular blood-donation drives with thelocal Red Cross.
• Donated pasta, baby food, clothing, 30 blankets, and16 backpacks to the local Hanseatic Help charitableorganization.
• Hosted an annual Christmas donation benefiting many
local charities, including the Alsterdorf Foundationin Hamburg, the Kinderhaus Rabe in Dresden, andbrotZeit in Munich.

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

India• Donated to the Prime Minister National Relief Fund,which provides support for people affected by naturaland man-made disasters.
• Supported Joy of Giving Week and The Giving Treeby donating small gifts to children studying in Nai
Disha School and Old Age-Home.

Development

Malaysia• Donated $20,000 USD worth of essential supplies
to support those impacted by unprecedented flash
floods – benefiting 127 individuals who were strandedin their homes and 267 individuals who had property
damage to property, vehicles, and more.

Netherlands• Donated more than 175 laptops to Allemaal Digital, afoundation established at the start of the pandemic tocollect laptops and tablets, refurbish them, and givethem to people in financially vulnerable situations.

Singapore• Volunteered at the Willing Hearts Soup Kitchen,helping to prepare vegetables and distribute meals to
those in need.

Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

Japan• Donated foreign-currency coins and bills collectedfrom team members’ overseas business trips to
UNICEF.

Taiwan• Donated 15 laptops to YongAn Children’s Home tobenefit children in need.
• Worked with the local government and a clinic to
set up an onsite vaccination station, and organized
three sessions for our team members, suppliers, andcompanies in the Nanzih Technology Industrial Park.

Thailand• Donated 200 fingertip oxygen meters and 200
digital thermometers to Health Center 53, Laksi
District, Bangkok Metropolitan Administration, for
distribution to those with confirmed COVID-19 casesin the community.
• Donated personal protective equipment (PPE),
including 50 raincoats, 50 pairs of rain boots, 100
pairs of safety glasses, and 200 pairs of rubber
gloves, to the Laksi district office and government
body for flood relief in Bangkok and thesurrounding area.

United Kingdom• Donated a range of healthy foods, to be given to
people in the local community who struggle to afford
good-quality produce.
• Raised £2,000 in a charity raffle to benefit the
Woman’s Aid organization.
• Donated jackets and coats to the Emergency
Accommodation Shelter to support homeless people
and families.

• Organized an onsite blood-donation drive in July
2022 and November 2022.

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GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT

United States• Donated (collectively) more than $50,000 USD tosupport various community initiatives, including thefollowing:– Provided school supplies for K-12 students acrossthe Chandler Unified School District and ICAN,
a free after-school program that serves East
Valley youth.
– Raised more than $2,500 USD in school supplies
for the Texas-based Foundation Community’s backto-school drive to support their free after-schooland summer learning programs.
– Raised funds for I Live Here I Give Here’s Amplify
Austin Day, the biggest day of giving in Central
Texas to support local nonprofits.
– Donated to Arizona Sustainability Alliance’s Food
Tech for the Future, a program dedicated tocreating and supporting regenerative local foodsystems.
– Supported the Vietnam Veterans of America
through a clothing and shoe drive, where teammembers donated new and gently used items.
– Donated to Code2College, a non-profit providing
access and opportunities in STEM to students fromunderrepresented backgrounds.
– Raised funds for El Buen Samaritano, a nonprofit
ensuring access to healthcare, education, andessential needs to the Latino community of Central
Texas, in partnership with the HEAT ERG.

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2022 ESG HIGHLIGHTSOUR BUSINESSVOLUNTEERING
Mainland China• Completed a local garbage clean-up activity at the
Chongqing Garden Expo.

ECONOMY
GOVERNANCE
ESG

Czech Republic• Volunteered at spring and fall garden clean-up events
to support the local Iskerka organization, which helps
people with mental disorders.
• Planted hundreds of trees to help ensure thesustainability of the Beskydy mountain range.

India• Provided special education opportunities for children
with visual impairment, in partnership with the
Saksham Foundation charitable organization.
• Worked with local organizations, including Nai
Disha, Diksha, National Workers Welfare Trust,and the Samridhi Kasvahalli Centre, to educate
underprivileged children.

Malaysia• Collaborated with Monash University to support
technical-degree students, working on final-year
projects, and PhD candidates. This collaboration
creates talent pipelines for NXP Malaysia, as
candidates have the opportunity to be converted
into NXP positions at the end of each projectand program.

• Supported a scholarship program for underprivilegedchildren seeking higher technical educationin collaboration with the Joining Hands
youth organization.

• Collaborated with NGO Yayasan Basmi Kemiskinan/
Poverty Eradication Foundation (YBK) to identify andsupport individuals who are underprivileged andliving in poverty.

OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

Germany• Partnered with RWTH AACHEN UNIVERSITY in
Germany to share HoverGames Drone Kits (KITHGDRONEK66). The team continues to discuss ways
NXP technology can help people in need.

Japan• Participated in cleanup activities to beautify the areasurrounding the work site.

Netherlands• Celebrated Earth Day by learning about the art ofbeekeeping, engaging in a nature walk while clearing
litter, and helping to make the site more beautiful.
• Participated in a local Cycling for Charity competition,with seven rounds of sponsored cycling, tobenefit the Oncology Fund of Radboud University
Medical Center.
• Supported the Swim to Fight Cancer organization,with seven NXP team members from Nijmegen andEindhoven participating in a 1500-meter swim to raisemoney for cancer research.

PRODUCT STEWARDSHIPAPPENDICES
99

GIVING BACK TO OUR COMMUNITIESINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSSingapore• Volunteered to prepare ingredients, distribute meals,
and prepare 144 food bags for distribution to those in
need. Duties included food sorting and quality check,collating, and packing.

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENT

United States• Sponsored Keep Austin Beautiful Day, an annual
event of cleaning and restoring Austin’s green spaces.
NXP volunteers cleaned Longhorn Shores, a publicpark on Lady Bird Lake.
• Volunteered with Austin Habitat for Humanity to build
homes in East Austin, providing two local families with
an affordable path to homeownership.
• Partnered with Valley of the Sun United Way toassemble 150 STEAM kits, designed to inspire thenext generation of artist-engineers by teaching themthe magic of circuits and electricity.
• Sponsored and participated in the Gazelle
Foundation’s Run for the Water race to provide cleanwater to the people of Burundi.
• Raised funds and participated in the Lymphoma
Research Foundation’s annual Arizona walk to raiseawareness to eradicate lymphoma and serve thosetouched by this disease.
• Volunteered with Feed My Starving Children for theirannual Hope Filled Holiday event to hand-pack meals
to be distributed to food partners around the world.

PRODUCT STEWARDSHIPAPPENDICES
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INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement

The NXP workforce includes:• DL team members, who are directly involved in the production of goods and typicallywork in our fabs
• IDL team members, who are professional team members at the individual contributor,
manager, and executive7 level in non-fab functions, such as R&D and General, Sales,and Administrative (GS&A)
On December 31, 2022, our total extended workforce was 39,731 team members,
representing 33,037 NXP employees, 1,492 joint-venture (JV) employees, and 5,202
people working as contingent labor across three regions and 30+ countries. Note: this isrepresentative of total NXP headcount (HC) and not a Full-Time Equivalent (FTE) count, as
disclosed in the NXP International Financial Reporting Standards (IFRS) filing.
NXP directly hires recruited foreign migrant workers with support from NXP-approved laboragencies that help with document processing, such as visa applications, renewals, anddormitory accommodations.
Demographics data, given on the following pages, is represented as total NXP HC and iscurrent as of December 31, 2022.

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development

LegendFuture Talent
Retention

HC – HeadcountHealth and Safety

IDL – Indirect Labor

Human Rights

DL – Direct Labor

Community Outreach

FT – Full Time

Team-Member Demographics

PT – Part Time
ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Executive positions are defined as Vice President and above.

7

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INTRODUCTION

Social8

Unit

2019

2020

2021

2022

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

Percentage of ISO 45001-Certified Manufacturing Sites

%

100%

100%

100%

100%

Number of ISO 45001-Certified Manufacturing Sites

#

9

9

9

9

Human Rights Policy9

Yes/No

Yes

Yes

Yes

Yes

Policy Against Child Labor

Yes/No

Yes

Yes

Yes

Yes

UN Global Compact Signatory

Yes/No

Yes

Yes

Yes

Yes

Responsible Business Alliance (RBA) Full Member

Yes/No

Yes

Yes

Yes

Yes

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

Years

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but
in some cases
more frequently
subject toapplicable law

Overview
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Frequency of Team-Member Sexual-Harassment Training

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPThe sum of percentages may not add up to 100% due to rounding.
We published our first, stand-alone Human Rights Policy in 2022. Previously, human rights clauses were embedded within existing policies and commitments.

8

APPENDICES

9

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TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

HC

34,81733,48036,22339,731

HC

27,75927,73029,86133,037

%

80%

83%

82%

83%

HC

1,651

1,454

1,487

1,492

%

5%

4%

4%

4%

HC

5,407

4,296

4,875

5,202

%

16%

13%

13%

13%

Americas

%

20%

19%

18%

18%

APAC

%

59%

60%

61%

61%

EMEA

%

21%

21%

20%

21%

Americas

%

—%

—%

—%

—%

APAC

%

91%

99%

100%

100%

EMEA

%

9%

1%

—%

—%

Americas

%

20%

20%

18%

15%

APAC

%

54%

53%

59%

60%

EMEA

%

26%

27%

23%

25%

External Temp

%

24%

33%

31%

30%

Contractor

%

76%

67%

69%

70%

Workforce Footprint
2022 ESG HIGHLIGHTSOUR BUSINESSExtended Workforce - Total
Employees

ECONOMY

Joint Venture
GOVERNANCE
ESG

Contingent LaborOUR TEAM MEMBERS
Overview
Team-Member Engagement

Employees

Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent

Joint Venture

Retention
Health and Safety
Human Rights
Community OutreachContingent Labor

Team-Member Demographics

ENVIRONMENT

Contingent Labor by TypeSUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
103

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

Americas

%

27%

24%

22%

21%

APAC

%

42%

44%

46%

46%

EMEA

%

31%

32%

32%

32%

Americas

%

7%

12%

12%

13%

APAC

%

90%

84%

84%

83%

EMEA

%

3%

4%

4%

4%

Individual Contributor (DL)

%

36%

38%

41%

39%

Individual Contributor (IDL)

%

53%

51%

50%

52%

People Manager (IDL)

%

11%

10%

9%

9%

Executive (IDL)

%

0.6%

0.5%

0.5%

0.5%

Americas

%

25%

23%

21%

19%

APAC

%

35%

36%

39%

41%

EMEA

%

40%

41%

40%

40%

Percent R&D of Total NXP Footprint

%

32%

32%

31%

34%

Employee Type by Region
2022 ESG HIGHLIGHTSOUR BUSINESS

Indirect Labor (IDL)ECONOMY
GOVERNANCE

Direct Labor (DL)ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

Employee by Role

Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT

R&D Employee by Region

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
104

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

Full-Time (FT)

%

99.4%

99.3%

99.5%

99.5%

Part-Time (PT)

%

0.6%

0.7%

0.5%

0.5%

Women

%

37%

36%

37%

37%

Men

%

63%

64%

63%

63%

Women

%

21%

21%

19%

18%

Men

%

79%

79%

81%

82%

Women

%

37%

36%

37%

37%

Men

%

63%

64%

63%

63%

Americas

%

12%

11%

11%

12%

APAC

%

79%

79%

80%

78%

EMEA

%

9%

9%

9%

11%

Americas

%

25%

24%

22%

22%

APAC

%

48%

48%

51%

51%

EMEA

%

28%

28%

27%

27%

Employment Type
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCEFT Employment by Gender

PT Employment by Gender

ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement

Employee by GenderThought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

Employee Gender by Region

Development
Future Talent
Retention

Women

Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENTMen

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
105

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

Women

%

14%

13%

13%

16%

Men

%

86%

87%

87%

84%

Women

%

16%

16%

16%

18%

Men

%

84%

84%

84%

82%

Women

%

39%

38%

39%

39%

Men

%

61%

62%

61%

61%

Women

%

22%

23%

24%

25%

Men

%

78%

77%

76%

75%

Women

%

62%

58%

56%

55%

Men

%

38%

42%

44%

45%

Women

%

16%

16%

17%

19%

Men

%

84%

84%

83%

81%

White (Not Hispanic / Latino)

%

52%

52%

51%

49%

Asian (Not Hispanic / Latino)

%

21%

21%

20%

22%

Hispanic / Latino

%

13%

14%

15%

16%

Black or African American (Not Hispanic / Latino)

%

4%

4%

5%

6%

Native American / Alaska Native (Not Hispanic / Latino)

%

0.4%

0.5%

0.6%

0.6%

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

%

0.2%

0.2%

0.2%

0.2%

Employee Gender by Role
2022 ESG HIGHLIGHTS

Executive
OUR BUSINESSECONOMY
GOVERNANCE

People Manager

Individual Contributor

ESG
OUR TEAM MEMBERS

IDL

Overview
Team-Member Engagement
Thought Leadership

DL

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

R&D

Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

United States Race and Ethnicity

APPENDICES
106

TEAM-MEMBER DEMOGRAPHICS
Unit

2019

2020

2021

2022

Two or More Races (Not Hispanic / Latino)

%

0.5%

0.6%

0.9%

1%

Undeclared

%

8%

8%

7%

6%

White (Not Hispanic / Latino)

%

68%

68%

63%

64%

Asian (Not Hispanic / Latino)

%

9%

9%

10%

13%

Hispanic / Latino

%

6%

6%

6%

7%

Black or African American (Not Hispanic /Latino)

%

5%

5%

6%

7%

Native American or Alaska Native (Not
Hispanic / Latino)

%

—%

—%

—%

—%

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

%

—%

—%

—%

—%

Two or More Races (Not Hispanic / Latino)

%

—%

—%

1%

1%

Undeclared

%

13%

12%

14%

7%

Health and Safety

White (Not Hispanic / Latino)

%

59%

60%

59%

57%

Human Rights

Asian (Not Hispanic / Latino)

%

19%

19%

18%

20%

Hispanic / Latino

%

8%

9%

9%

11%

Black or African American (Not Hispanic /Latino)

%

3%

3%

3%

3%

Native American or Alaska Native (Not
Hispanic / Latino)

%

0.3%

0.3%

0.2%

0.3%

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

%

—%

—%

—%

0.1%

Two or More Races (Not Hispanic / Latino)

%

0.1%

0.2%

0.5%

0.7%

Undeclared

%

10%

9%

9%

8%

INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYSocialUnited States Race and Ethnicity Continued

United States Employee Race and Ethnicity by Role

GOVERNANCE
ESG
OUR TEAM MEMBERS

Executive

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention

Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

People Manager

107

TEAM-MEMBER DEMOGRAPHICS
Unit

2019

2020

2021

2022

White (Not Hispanic / Latino)

%

53%

51%

51%

49%

Asian (Not Hispanic / Latino)

%

23%

27%

27%

30%

Hispanic / Latino

%

11%

9%

10%

10%

Black or African American (Not Hispanic /Latino)

%

3%

2%

3%

3%

Native American or Alaska Native (Not
Hispanic / Latino)

%

0.4%

0.3%

0.4%

0.2%

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

%

0.4%

0.1%

0.1%

0.1%

Two or More Races (Not Hispanic / Latino)

%

0.6%

0.6%

0.9%

1%

Undeclared

%

9%

9%

9%

7%

Diversity, Equality, and Inclusion

White (Not Hispanic / Latino)

%

38%

50%

47%

44%

Compensation and Benefits

Asian (Not Hispanic / Latino)

%

13%

10%

10%

9%

Hispanic / Latino

%

32%

28%

27%

29%

Black or African American (Not Hispanic /Latino)

%

12%

8%

10%

12%

Native American or Alaska Native (Not
Hispanic / Latino)

%

0.6%

0.9%

1%

2%

Team-Member Demographics

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

%

0.9%

0.6%

0.6%

0.6%

ENVIRONMENT

Two or More Races (Not Hispanic / Latino)

%

0.9%

0.8%

1%

2%

Undeclared

%

3%

3%

3%

3%

INTRODUCTION

Social2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Individual Contributor (IDL)ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership

Development
Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

SUPPLIER ENGAGEMENT

Individual Contributor (DL)PRODUCT STEWARDSHIPAPPENDICES108

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

<31 years old

%

15%

19%

22%

25%

31–50 years old

%

61%

59%

57%

55%

51+ years old

%

23%

22%

21%

20%

Executive

%

—%

—%

—%

—%

People Manager

%

0.1%

0.1%

0.1%

0.1%

Individual Contributor

%

15%

19%

22%

24%

Executive

%

0.2%

0.2%

0.2%

0.1%

People Manager

%

7%

6%

6%

6%

Individual Contributor

%

54%

53%

51%

50%

Executive

%

0.4%

0.4%

0.3%

0.3%

People Manager

%

4%

3%

3%

3%

Individual Contributor

%

19%

18%

17%

17%

%

7.8%

6.9%

12.1%

11.7%

Americas (IDL and DL)

%

5.8%

5.6%

9.1%

10.4%

APAC (IDL and DL)

%

9.7%

8.9%

15.7%

14.7%

EMEA (IDL and DL)

%

4.2%

2.5%

4.3%

3.8%

Employee by Age
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

Employee Age by Role
GOVERNANCE<31 years old
ESG
OUR TEAM MEMBERS
Overview

31–50 years old

Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development

51+ years old

Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

Employee Attrition
Voluntary Turnover

Global Employee Voluntary Turnover
ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

109

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

%

5.9%

5.1%

7.9%

7.5%

Americas (IDL)

%

5.6%

6.2%

8.6%

9.4%

APAC (IDL)

%

7.3%

6.1%

9.9%

9.0%

EMEA (IDL)

%

4.3%

2.7%

4.5%

3.9%

%

11.0%

9.8%

18.4%

18.1%

Americas (DL)

%

6.9%

3.6%

10.5%

13.1%

APAC (DL)

%

11.7%

11.2%

20.3%

19.5%

EMEA (DL)

%

1.9%

0.7%

2.1%

2.9%

Women

%

22%

21%

23%

24%

Men

%

78%

79%

77%

77%

<31 years old

%

24%

22%

28%

25%

31–50 years old

%

59%

60%

55%

56%

51+ years old

%

17%

18%

16%

19%

Women

%

59%

63%

55%

60%

Men

%

41%

37%

45%

40%

<31 years old

%

52%

45%

53%

58%

31–50 years old

%

37%

44%

38%

35%

51+ years old

%

11%

11%

9%

8%

Global IDL Employee Voluntary Turnover2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

Global DL Employee Voluntary Turnover

GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion

IDL Voluntary TurnoverCompensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPDL Voluntary Turnover

APPENDICES
110

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

%

3.9%

3.2%

3.8%

1.5%

Americas (IDL and DL)

%

5.8%

5.4%

4.6%

1.4%

APAC (IDL and DL)

%

3.5%

4.1%

4.1%

1.2%

EMEA (IDL and DL)

%

3.2%

5.4%

2.2%

2.8%

Americas

%

21%

19%

19%

19%

APAC

%

47%

56%

56%

47%

EMEA

%

31%

25%

25%

34%

Americas

%

2%

2%

11%

16%

APAC

%

97%

97%

89%

83%

EMEA

%

0.5%

0.1%

0.6%

2%

Women

%

23%

23%

27%

29%

Men

%

77%

77%

73%

71%

Women

%

31%

32%

30%

35%

Men

%

69%

68%

70%

65%

Women

%

66%

56%

53%

56%

Men

%

34%

44%

47%

44%

Involuntary Turnover2022 ESG HIGHLIGHTS

Global Employee Involuntary Turnover

OUR BUSINESSECONOMY
GOVERNANCE

Employee Hiring
ESG
OUR TEAM MEMBERS

IDL

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion

DL

Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights

Employee Hiring by TypeIDL

Community OutreachTeam-Member Demographics

IDL New College Graduate

ENVIRONMENTDL
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

111

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

White (Not Hispanic / Latino)

%

22%

47%

42%

32%

Asian (Not Hispanic / Latino)

%

37%

32%

18%

26%

Hispanic / Latino

%

6%

10%

17%

18%

Black or African American (Not Hispanic / Latino)

%

2%

2%

11%

9%

Native American or Alaska Native (Not Hispanic / Latino)

%

—%

0.4%

1%

1%

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

%

—%

—%

0.4%

0.3%

Two or More Races (Not Hispanic / Latino)

%

0.8%

0.4%

3%

3%

Undeclared

%

32%

9%

7%

12%

White (Not Hispanic / Latino)

%

35%

29%

33%

35%

Asian (Not Hispanic / Latino)

%

39%

43%

44%

39%

Hispanic / Latino

%

9%

11%

10%

13%

Black or African American (Not Hispanic / Latino)

%

3%

2%

4%

5%

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)

%

4%

2%

7%

4%

Undeclared

%

10%

14%

3%

4%

United States Hiring by Race and Ethnicity
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS
Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community OutreachTeam-Member Demographics

United States New College Gradate Hiring by Race and Ethnicity 		

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
112

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

IDL

%

40%

44%

49%

48%

DL

%

66%

61%

66%

68%

IDL

%

50%

45%

44%

45%

DL

%

34%

39%

32%

29%

IDL

%

10%

11%

6%

7%

DL

%

0.4%

0.7%

2%

3%

Hiring by Age
2022 ESG HIGHLIGHTS<31 years old
OUR BUSINESSECONOMY
GOVERNANCE
ESG

31–50 years old

51+ years old

R&D Hiring by Region

OUR TEAM MEMBERS

Americas

%

15%

13%

11%

14%

Overview

APAC

%

42%

38%

61%

47%

EMEA

%

43%

49%

29%

39%

Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits

IDL Talent Hiring

Development

University

%

45%

35%

24%

23%

Global NXP Intern Conversion Rate

%

30%

30%

40%

39%

Future Talent
Retention
Health and Safety
Human Rights
Community OutreachGlobal Employee Promotion Rate

%

7%

7%

8%

11%

Team-Member Demographics

IDL

%

8%

8%

11%

13%

DL

%

5%

4%

4%

7%

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES
113

TEAM-MEMBER DEMOGRAPHICS
INTRODUCTION

Social

Unit

2019

2020

2021

2022

Hours

89,591

168,229

Global Online Courses Completed by Executives

Courses123

110

Global Online Courses Completed by People Managers

Courses

2,197

2,551

Global Online Courses Completed by Individual Contributor (IDL and DL)

Courses

6,532

6,836

Global Online Learning Courses Completed by Employees (Total Courses per Employee)

Courses

8,852

9,497

IDL

Hours

7.0

8.0

DL

Hours

0.2

0.6

Women

Hours

2.2

4.1

Men

Hours

3.5

5.7

23

25

36

8

7

12

Training
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

Total NXP Online Training Hours

Total Online Training (Average Hours)

Online Training by Gender

Overview
Team-Member Engagement
Thought Leadership
Diversity, Equality, and Inclusion
Compensation and Benefits
Development
Future Talent
Retention
Health and Safety
Human Rights
Community Outreach

Health and Safety
Occupational Illness and Injuries#

Total - Injury Count NXP Contractors#

35

Severity Rate

Rate

4.64

2.26

1.47

2.86

Total Case Incident Rate (TCIR)

Rate

0.12

0.08

0.08

0.10

#

0

0

0

0

Yes/No

Yes

Yes

Yes

Yes

#

17

4

6

14

Fatalities - Employees

Team-Member Demographics

ENVIRONMENT

Supply Chain
Supply-Chain Management - Social Responsibility

SUPPLIER ENGAGEMENT

Total Number of Audits

PRODUCT STEWARDSHIPAPPENDICES
114





ENVIRONMENTOPTIMIZING OUR RESOURCE USE AND CONSUMPTION,MINIMIZING WASTE, AND CONTINUOUSLY IMPROVINGOVERVIEW
INTRODUCTIONENVIRONMENTAL LONG-TERM AMBITIONS

2022 ESG HIGHLIGHTSOUR BUSINESS

Develop
Collaborative
Solutions for
Circular Economy

Minimize Impact
on Global Water
Supplies

Carbon Neutral
by 2035

Reduce Useof Targeted
Chemicals ofConcern

Collaborate with
our Suppliers
to Reduce their
Environmental
Footprint

90% Waste
Recycled

Work with Our
Supply Chain to
Reduce Impacts
and Measure Our
Portion of Their
Carbon Footprint

ECONOMY
GOVERNANCE

2027 ENVIRONMENTAL MID-TERM GOALSESGOUR TEAM MEMBERS

35% Reductionin Scope 1 & 2
Carbon Footprint(2021 Baseline)

60% of Wastewater
Recycled

50% Renewable
Energy Use

ENVIRONMENT
Overview
Management
Emissions2022 ENVIRONMENTAL PERFORMANCE

EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

1%

Decrease in Absolute
Scope 1 & 2 Emissions
Compared to 2021

9%

Decrease in Normalized
Scope 1 & 2 Emissions
Compared to 2021

35%

Renewable
Electricity Use

48%

of Wastewater
Recycled

83%

Waste Recycled

Updated Supplier
Questionnaires to
Determine NXP’s
Upstream Scope 3
Emissions

PRODUCT STEWARDSHIPAPPENDICES

As an environmentally responsible manufacturer committed to continuous improvement, we strive to optimize our use of natural resources, minimize releases to the environment, and achieve
operational efficiencies. To support these objectives, we maintain and implement an environmental management system and several programs.
Key environmental principles are embedded in our Sustainability Policy.
116

MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSCERTIFICATION

In accordance with criteria from theInternational Organization of Standardization(ISO), our environmental management
system is certified to ISO 14001 at all our
manufacturing sites.

GOVERNANCEECONOMY
GOVERNANCE

Our Environment, Health, and Safety (EHS) Management
Board is responsible for environmental management, including
strategy, approval, and resourcing. The EHS Management
Board is chaired by the Executive Vice President (EVP) of
Operations and supported by senior leaders in business lines
and staff functions.

ESG
OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging

NXP’s Sustainability and EHS Teams manage annual strategies,
policies, goals, and metrics, 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 risks.
Our EHS Team performs formal reviews with all manufacturing
sites on a monthly basis, to examine data, discuss the progressof improvement projects, and set expectations for the
next period.

RISK ASSESSMENTS, SELF-ASSESSMENTS,
AND AUDITS

Hazardous Chemicals and Materials

RISK ASSESSMENTS
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESAll 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,
and waste management, to proactively identify, mitigate, andmanage potential environmental hazards using programs,
procedures, and engineering controls.

SELF-ASSESSMENTS

As part of our membership in the Responsible Business
Alliance (RBA), each of our eight manufacturing sites is required
to complete an RBA Self-Assessment that covers environmental
and management systems. Conducting self-assessments helps
us evaluate potentially significant social and environmental
risks at our manufacturing sites so we can apply appropriate
mitigation and controls as needed.

AUDITSThe EHS and Social Responsibility Teams use external
audit firms to conduct internal EHS audits. Internal 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 third-party audits to evaluate corporate EHS
and, on average, two manufacturing sites as determinedby LRQA. In 2022, NXP was recertified to the ISO 14001
standards with a more detailed audit at five locations,
including our headquarters. LRQA used a combination of
onsite and remote audits, as dictated by internal and/or local
gathering requirements, to audit a sampling of complianceand management systems. A formal report was issued, andcorrective actions are being tracked until LRQA indicates thatthey have been satisfactorily closed.
Larger offices and R&D sites conduct annual self-assessments
and are audited by a third party approximately every five years.
We take Notices of Violations (NOVs) seriously. We work
quickly to identify corrective actions and take steps to minimize
the chance of reoccurrence. In 2022, we received two NOVs,
both relating to minor deficiencies. One resulted in a pending
conditional fine, due to an inability to close a storm drain incase of an incident.

TRAINING

We offer company-wide training to ensure our global workforce
is equipped with the skills and knowledge to perform theirfunctions safely and without harming to the environment.
This includes job-specific and site-specific training, on-the-job
training, and specialized training that includes the preventionof stormwater pollution, management of hazardous waste
and wastewater, handling of chemicals, shipping of hazardous
materials, and other topics related to the environment. Training
and awareness includes engaging our team members inincident investigations, to identify potential improvements
and assist in the implementation and ongoing improvement ofmanagement systems.

VALIDATION

NXP’s data-management system tracks and calculates ourenvironmental performance at each manufacturing site. On aquarterly basis, the Sustainability Office validates 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.
Validation consists of the following steps:• Check for completeness of data (sites and parameters)• Compare data from the previous period with data fromcurrent reporting period• Determine whether changes in data are significant• Seek explanations for any significant data changes• Investigate significant events
To ensure reliable, accurate, and complete reporting, EHS also
conducts internal data audits of our manufacturing sites as wellas our larger office and R&D sites. The audits check for proper
reporting procedures and data trails. NXP has updated someenvironmental data from previous reporting periods. Where
the updated data exceeds a 5% change, we have included an
explanation in the related section.

117

EMISSIONSINTRODUCTION

LONG-TERM EMISSIONS AMBITIONS

2022 ESG HIGHLIGHTS

Carbon Neutral by 2035

OUR BUSINESSAs semiconductor technology evolves, manufacturing
processes are becoming more complex. Smaller, fastersemiconductors require more process steps to produce, whichmeans production consumes more energy and requires more
processing chemicals. That, in turn, translates to an increase inemissions. We work to offset this by continually optimizing ourprocesses and increasing our abatement of process emissions.

Collaborate with our Supplierson their Environmental
Footprint

ECONOMYOur manufacturing sites generate Scope 1 (direct) and
Scope 2 (indirect) greenhouse gas (GHG) emissions. The
main contributors to our carbon footprint are emissions frompurchased electricity, perfluorinated compounds (PFCs), andheat-transfer fluids (HTFs).
Greenhouse Gas Emissions

GOVERNANCE

2027 MID-TERM EMISSIONS GOALSESGWork with Our Supply Chain to
Reduce Impacts and Measure
NXP’s Portion of their Carbon
Footprint

35% Reduction in Scope 1& 2 Carbon Footprint(2021 Baseline)

OUR TEAM MEMBERS

Greenhouse Gas Emissions
Greenhouse Gas Emissions

Greenhouse Gas Emissions 8%

ENVIRONMENT

5%

8%

8%

5%

Overview

5%

8%
5%

Management
Emissions
Energy2022 EMISSIONS PERFORMANCE

Water

34%

Waste
Packaging

34%

34%

34%

54%

54%

54%

54%

Hazardous Chemicals and Materials

1%

SUPPLIER ENGAGEMENT

Decrease in Absolute
Scope 1 & 2 Emissions
Compared to 20211

PRODUCT STEWARDSHIP

9%

Decrease in Normalized
Scope 1 & 2 Emissions
Compared to 20211

Updated Supplier
Questionnaires to
Determine NXP’s
Upstream Scope 3
EmissionsElectricity (Manufacturing and Non-Manufacturing)
PFCs
HTFs
Electricity (Manufacturing and Non-Manufacturing)Electricity(Manufacturing and Non-Manufacturing)Electricity (Manufacturing
and Non-Manufacturing)
PFCs
HTFs

PFCsEmissions HTFs
Other

Other Emissions
PFCs
HTFs

Other Emission

Electricity, PFCs, and HTFs are essential to semiconductor
manufacturing. Since it’s not currently feasible to eliminate thesources of these emissions from our production processes, wehave set reduction goals for both Scope 1 & 2 emissions.

APPENDICES

1

 e have updated our calculation of PFC emissions and, by extension, the totals of our Scope 1 emissions. We use the IPCC 2006 methodology for data leading up to andW
including 2020, and the IPCC 2019 methodology for 2021 and all the years following.
118

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

GOALS

Our goal to be carbon neutral by 2035 presents multiple layers of complexity, given that
we use renewable and non-renewable electricity, fossil fuels, PFCs, and HTFs. The picture
becomes even more complex when we consider annual increases in semiconductor production
which, in turn, increase our GHG emissions. In 2022, to keep ourselves accountable, we
committed to aligning our targets with the Science Based Targets initiative (SBTi)2. We arecompiling data for SBTi validation and have identified the a number of mid-term goals.
By 2027, our mid-term goal is to reduce Scope 1 & 2 absolute emissions by 35% from a2021 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, anotherof 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 emissions reduction.
Strategy

OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

Electricity

PFCs

HTFs

Increase Percentage ofRenewable Electricity

Replace or Minimize Use of
GHGs

Substitute Chemicals to
Reduce HTF Emissions

Optimize Building Operations Optimize Processes
and Product-Testing
Processes

Design New Equipment toPrevent Emissions

Power Down Equipment
When Not in Use

Reduce Leakage

Phase Out Non-Critical Usesof HTFsUse Efficient Lighting
Technologies and Schedules

Install PFC Abatement
Equipment

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

2

119

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSCARBON FOOTPRINT

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 threeof the protocol’s defined categories: Scope 1 (direct emissions), Scope 2 (indirect emissions,owned), and partial Scope 3 (business travel and product transportation).

2022 SCOPE 1 & 2 EMISSIONS PERFORMANCEECONOMY

Normalized Emissions

Absolute Emissions

9%

1%

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

Decreasefrom 2021

Decreasefrom 2021

33%

20%

Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Decreasefrom 2012

Decreasefrom 2012

PRODUCT STEWARDSHIPAPPENDICES

120

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYCARBON FOOTPRINT25

In 2022, the demand for our products increased 9% compared to 2021. That meant ourelectricity, PFC3, and HTF consumption increased as well. However, due to conservation andreduction projects, our absolute Scope 1 & 2 emissions decreased 1% compared to 2021 andour normalized Scope 1 & 2 emissions decreased by 9% from 2021. While a 9% production
increase is significant, our ongoing efforts to conserve electricity, optimize our processes,
increase renewable electricity use, upgrade tools, and install abatement equipment, resulted in adecrease for absolute and normalized Scope 1 & 2 emissions.

20

15

A decade of collective effort has significantly reduced our Scope 1 & 2 emissions. Since 2012,
we’ve lowered normalized emissions by 33% and absolute emissions by 20%.

10

GOVERNANCE

5

ESG
3

OUR TEAM MEMBERS

Normalized Combined Scope 1 & Scope 2 Market-Based Emissions

Tons CO2e/m2

INTRODUCTION0 e used IPCC 2006 methodology for PFC reporting in 2021, but have transitioned to IPCC 2019 methodology in 2022. For theW“Emissions” section of this Report, we report both values using both IPCC 2006 and IPCC 2019 methodologies for displaying PFC
data in this section. Moving forward, we will only report using IPCC 2019 methodology.

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Normalized Scope 1 & Scope 2 (Market Based) Emissions

ENVIRONMENT
Overview

Absolute Scope 1 & Scope 2 Market-Based Emissions

Management

1750000

Emissions
Energy1,500,000

Water
1250000

Waste
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Tons CO2e

Packaging

1,000,000
750000500,000
250000
0

2012

2013

2014

2015

Scope 1 Emissions

2016

2017

2018

2019

2020

2021

2022

Scope 2 Emissions (Market-Based)

Market-based emissions reflect actual data from energy providers.
121

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSSCOPE 1 EMISSIONSThe GHG Protocol defines Scope 1 emissions as direct emissions from company-owned andcontrolled resources, including process emissions (from onsite manufacturing) and stationary
combustion (fuels, heating sources, etc.).

Our Scope 1 emissions include PFCs, HTFs, emissions from the consumption of fossil fuels, andemissions of gases identified in the Kyoto Protocol, including Nitrous Oxide (N2O) and Sulfur
Hexafluoride (SF6).

ECONOMY2022 SCOPE 1 EMISSIONS PERFORMANCE
GOVERNANCE

Normalized Emissions

Absolute Emissions

6%

3%

ESG
OUR TEAM MEMBERSENVIRONMENT
Overview
Management

Decreasefrom 2021

Increasefrom 2021

32%

18%

Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Decreasefrom 2012

Decreasefrom 2012

APPENDICES

122

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
Overview

SCOPE 1 EMISSIONSIn 2022, NXP adopted 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 isimportant because it provides two things:• Supplementary methodologies for sources and sinks of greenhouse gases for areas thatcurrently have gaps and where new technologies and production processes necessitate
revised methodologies. The additions also address sources and sinks that were not wellcovered by the 2006 IPCC Guidelines.
• Updated default values of emission factors and other parameters, based on the latest
available scientific information, where there are significant differences from the default
values presented in the 2006 IPCC15.

10

8

Having adopted the 2019 Refinement, we have updated some of our historical data. As aresult, the PFC emissions and, by extension, our Scope 1 emissions, differ from what werepreviously reported. To be specific, we now use IPCC 2006 Tier 2a for 2012 through 2020
PFC data and IPCC 2019 Tier 2c for 2021 and 2022 PFC data. To make comparison easier, we
report PFC values for 2022 and 2021 using both IPCC 2006 and IPCC 2019 methodologies
in the “Emissions” section of this 2022 Report. In future, we will only report using IPCC 2019
methodology. For additional information on our updated IPCC calculation methodology, pleasesee our discussion of “PFCs,” on the following pages.

Water
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Absolute Scope 1 Emissions
800,000

In 2022, demand for our products increased by 9% compared to 2021. As a result, we usedlarger amounts of processing chemicals that are classified as Scope 1 emissions. While ourabsolute Scope 1 emissions increased by 3%, our normalized Scope 1 emissions decreased by
6% compared to 2021.
Since 2012, our efforts to optimize our processes, upgrade tools, and install abatement
equipment have lowered our absolute Scope 1 emissions by 18% and our normalized Scope 1
emissions by 32%.

40

600,000

Tons CO2e

Energy62Management
Emissions

Normalized Scope 1 Emissions

12

Tons CO2e/m2

INTRODUCTION

400,000

200,000

PRODUCT STEWARDSHIP0APPENDICES

2012

2013

2014
PFCs

2015

2016
HTFs*

2017

2018

2019

Fossil Fuel

2020

2021

2022

N2 O

*HTF emissions begins reporting in 201332019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories

Appendix G lists the chemicals included in each Scope 1 category.
123

EMISSIONSINTRODUCTIONSCOPE 1 EMISSIONS BY TYPE
PFCs2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

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 tominimize the impact of PFCs on the environment.
NXP is a signatory to two documents – the Memorandum of Understanding in the UnitedStates and the Memorandum of Agreement in Europe – which seek 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).

2022 PFC EMISSIONS PERFORMANCE
Normalized Emissions

Absolute Emissions

6%

16%

ENVIRONMENT
Overview
Management
Emissions
EnergyWater

Increasefrom 2021

Increasefrom 2021

42%

31%

Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Decreasefrom 2012

Decreasefrom 2012124

EMISSIONSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
PackagingTransitioning from IPCC 2006 to IPCC 2019 has changed the calculation for PFC emissions,
resulting in an increase in total PFC emissions of 20% for 2021 and 19% for 2022 compared tothe 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 & 2 emissions, as well as our2035 goal of carbon neutrality.

PRODUCT STEWARDSHIPAPPENDICES

8

Our PFC usage today is significantly higher than it was ten years ago, because we produce
increasingly complex products that involve more processing steps compared to 2012, andthese added processing steps require more PFCs. Also, over the past several years, we haveupdated the manufacturing processes that use PFCs as etch gases, so we can produce finer,
smaller semiconductor devices, and these newer processes add to our overall PFC use.

6

4

2

In 2022, demand for our products increased by 9% compared to 2021. Higher demand,
combined with our newer, more PFC-intensive processes, raised our PFC usage. As a result,
our absolute PFC emissions increased by 16%, and our normalized PFC emissions increased
by 6% compared to 2021. Additionally, after conducting an inspection, in 2022, we concluded
that the PFC reporting at one of our manufacturing locations was incomplete. We updated ourreporting methodology and updated our PFC data for previous years.

0We’ve chosen to use the IPCC 2019 Tier 2c methodology because it provides an updated andsound scientific basis for supporting the preparation and ongoing improvement of national
GHG inventories, and that makes our calculations for PFC emissions more accurate. However,the IPCC 2019 Tier 2c methodology requires a higher level of data granularity than we haveavailable for the years leading up to and including 2020. For this reason, we only report using
the IPCC 2006 Tier 2a methodology for those years.

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

IPCC 2019 Tier 2c Methodology / AR5

Absolute PFC Emissions
600,000

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 historical values up until
2020. The results using the IPCC 2019 Tier 2c methodology, for 2021 and 2022 data, include
revised emission factors, with further refinement by process type.
In future, we will use the IPCC 2006 Tier 2a methodology for data leading up to and including
2020, and will switch to the IPCC 2019 Tier 2c methodology, with Global Warming Potentialsof the IPCC Assessment Report #5 (AR5), as of 2021.

2012

IPCC 2006 Tier 2a Methodology / AR4

Our ongoing efforts to optimize our processes, upgrade tools, and install abatement
equipment, resulted in a continuous decrease of PFC emissions, despite using more PFCs in
our manufacturing processes. Since 2012, our absolute PFC emissions have decreased by 31%
and our normalized PFC emissions have decreased by 42%.

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Normalized PFC Emissions

10

Tons CO2e/m2

2022 ESG HIGHLIGHTS

PFCs

500,000

Tons CO2e

INTRODUCTION

400,000

300,000

200,000

100,000

0

2012

2013

2014

2015

2016

2017

IPCC 2006 Tier 2a Methodology / AR4

2018

2019

2020

2021

2022

IPCC 2019 Tier 2c Methodology / AR5

125

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYHTFs

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 theremainder are used in manufacturing processes.

2022 HTF EMISSIONS PERFORMANCE
Normalized Emissions

Absolute Emissions

45%

40%

50%

43%

GOVERNANCE
ESG
OUR TEAM MEMBERS

Decreasefrom 2021

Decreasefrom 2021

ENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

Decreasefrom 2012

Decreasefrom 2012

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

126

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

HTFs

Normalized HTF Emissions

3.0

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 2013, when we began reporting HTF emissions, absolute HTF
emissions have decreased by 43% and normalized emissions by 50%.

2.5

2.0

After conducting an inspection, in 2022, we concluded that the HTF reporting at one ofour manufacturing locations was incomplete. We updated our reporting methodology andupdated our 2021 HTF data. Earlier years were not impacted by this change.

Tons CO2e/m2

INTRODUCTION

GOVERNANCE

1.5

1.0

0.5

ESG

0
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

OUR TEAM MEMBERSENVIRONMENT
Overview

Absolute HTF Emissions

Management
Emissions

200,000

EnergyWater
Waste

150,000

Packaging

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Tons CO2e

Hazardous Chemicals and Materials
100,000

50,000

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

127

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSFOSSIL FUELS

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 andcontrol humidity in our clean rooms.

2022 FOSSIL-FUEL EMISSIONS PERFORMANCEECONOMY

Normalized Emissions

Absolute Emissions

5%

4%

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

Decreasefrom 2021

Increasefrom 2021

16%

1%

Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Decreasefrom 2012

Increasefrom 2012

PRODUCT STEWARDSHIPAPPENDICES128

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSIn 2022, our manufacturing sites experienced colder weather, and our production increased
by 9% compared to 2021. As a result, our consumption of fossil fuels increased and ourabsolute emissions increased by 4% compared to 2021. However, our normalized fossil fuelconsumption decreased by 5% compared to 2021.

Normalized Fossil-Fuel Emissions

1.0

0.8

Our consumption of fossil fuels also varies each year depending on weather conditions but,
since 2012, we have increased absolute emissions by 1% and decreased normalized emissions
by 16%.

Tons CO2e/m2

INTRODUCTIONECONOMY
GOVERNANCE

0.6

0.4

0.2

ESG

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

OUR TEAM MEMBERSENVIRONMENT
Overview

Absolute Fossil-Fuel Emissions

Management

50,000Emissions
EnergyWater

40,000

Waste
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Tons CO2e

Packaging

30,00020,00010,000

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

129

EMISSIONSINTRODUCTION

N2O

2022 ESG HIGHLIGHTS

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.

OUR BUSINESSECONOMY
GOVERNANCE

2022 N2O EMISSIONS PERFORMANCE
Normalized Emissions

Absolute Emissions

4%

5%

ESG
OUR TEAM MEMBERSENVIRONMENT

Decreasefrom 2021

Increasefrom 2021

16%

0.2%

Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Decreasefrom 2012

Increasefrom 2012

PRODUCT STEWARDSHIPAPPENDICES

130

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

N2O

In 2022, our production increased by 9% compared to 2021 and, since N2O is used in multiple
areas, our consumption of N2O also increased. As a result, we saw an increase of absolute N2O
emissions by 5% from 2021 and an increase in absolute emissions by 0.2% from 2012.
For several years, however, we have been installing the most up-to-date abatement technology
and upgrading existing process tools. Our ongoing efforts to upgrade our abatement
technology and process tools have yielded a decrease in normalized N2O emissions by 4%compared to 2021 and a decrease in normalized emissions by 16% compared to 2012.

Normalized N2O Emissions

0.30

0.25

0.20
Tons CO2e/m2

INTRODUCTION

0.15

After conducting an inspection, in 2022, we concluded that the N2O reporting at one ofour manufacturing locations was incomplete. We updated our reporting methodology andupdated our 2021 N2O data. Earlier years were not impacted by this change.

0.10

0.05

ESG

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

OUR TEAM MEMBERSENVIRONMENT
Overview

Absolute N2O Emissions

Management
Emissions

20,000

EnergyWater
Waste

15,000

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Tons CO2e

Packaging
10,000

5,000

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

131

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSSCOPE 2 EMISSIONSThe GHG Protocol defines Scope 2 emissions as indirect emissions from the generation ofpurchased 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 BUSINESSECONOMY
GOVERNANCE

2022 SCOPE 2 EMISSIONS PERFORMANCE
Normalized Emissions

Absolute Emissions

12%

4%

ESG
OUR TEAM MEMBERSENVIRONMENT

Decreasefrom 2021

Decreasefrom 2021

34%

21%

Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Decreasefrom 2012

Decreasefrom 2012

PRODUCT STEWARDSHIPAPPENDICES

132

EMISSIONS

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Normalized Scope 2 Market-Based Emissions

SCOPE 2 EMISSIONS

15

We produce increasingly complex products that involve many more processing steps, allof which require electricity. Although demand for our products increased in 2022 by 9%compared to 2021, causing an uptick in overall electricity use, our absolute Scope 2 emissions
decreased by 4%. Also, our normalized Scope 2 emissions decreased by 12% compared to2021. These improvements reflect our increased focus on energy conservation and the use ofrenewable electricity.

10

Tons CO2e/m2

INTRODUCTION

Our efforts in the past ten years, to conserve electricity and optimize our process tools, haveproduced a continuous decrease in Scope 2 emissions, even though many of our processing
steps are more complex and require more electricity to run. Since 2012, our absolute Scope 2
emissions have decreased by 21% and our normalized Scope 2 emissions by 34%.

5

ESG
0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

OUR TEAM MEMBERSENVIRONMENT

Absolute Scope 2 Market-Based Emissions

Overview

900,000

Management
Emissions

750,000

EnergyWater

600,000

Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

Tons CO2e

Waste

450,000

300,000

150,000

PRODUCT STEWARDSHIP0APPENDICES

2012

2013

2014

2015

2016

Manufacturing

2017

2018

2019

2020

2021

2022

Non-Manufacturing

Market–based numbers reflect actual data from energy providers.

133

EMISSIONSSCOPE 3 EMISSIONS
2022 SCOPE 3 EMISSIONS PERFORMANCE

2022 ESG HIGHLIGHTS

Business-Travel Emissions

OUR BUSINESSECONOMY
GOVERNANCE
ESG

606%
Increasefrom 2021

Decreasefrom 2012

Decreasefrom 2019

Scope 3 Emissions
60,00050,000OUR TEAM MEMBERS

40,000ENVIRONMENT
Overview

Our Scope 3 emissions are reported on two types of travel: business travel and producttransportation. As we return to pre-pandemic levels of business travel, we expect to see anincrease in Scope 3 emissions. However, compared to 2019, we are still showing a marked
decrease. We will continue to explore ways to minimize our Scope 3 emissions.

66%

30%

The GHG Protocol defines Scope 3 emissions as indirect emissions, not included in Scope 2,that occur in the value chain of the reporting company. Our Scope 3 emissions are currently
limited to business travel and product transport. We continue to work with our supply chain tofurther quantify Scope 3 emissions.

Tons CO2e

INTRODUCTION

30,000

Product-Transport Emissions

Management

20,000Emissions
10,000

EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

2%

Increasefrom 2021

22%

Increasefrom 2012

0
2012

2013

2014

2015

2016

Business Travel

2017

2018

2019

2020

2021

2022

Product Transport

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

134

EMISSIONSINTRODUCTIONSCOPE 3 EMISSIONS
BUSINESS TRAVEL

2022 ESG HIGHLIGHTSOUR BUSINESSIn 2020 and 2021, the COVD-19 pandemic essentially stopped all travel. In 2022, however, as
pandemic-related restrictions began to ease, our emissions from business travel began returning
to previous levels, totaling 9,098 tons of CO2e. This is still lower than 2019, before the pandemic
began. We have updated the business-travel emissions for 2021 because additional data
became available after publication of the 2021 Report.

ECONOMYPRODUCT TRANSPORTATION

Emissions from product transportation include transporting semi-finished products between
manufacturing sites, and transporting fully finished products to warehouses and customers.
In 2022, our CO2e emissions from product transportation were estimated at 20,555 tons
CO2e (based on kilograms per kilometer).
Having updated our calculation methodology to align with industry best practices, we arerestating our product-transport emissions for 2017, 2018, 2019, 2020, and 2021. The 2021
data also includes updates we received after publication of the 2021 Report.

GOVERNANCE
Product-Transportation Emissions

Business-Travel Emissions

ESG
30,00030,000OUR TEAM MEMBERS
25,000ENVIRONMENT

25,00020,00020,000Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

Tons CO2eManagement

Tons CO2e

Overview
15,00010,00010,000

5,000

5,000
0

0
2012

SUPPLIER ENGAGEMENT

15,000

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Flight emission factors provided by the UK Department of Environment, Food and Rural Affairs (DEFRA).

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Air-freight CO2e calculation is 0.567 kg/km as set by the Intergovernmental Panel on Climate Change (IPCC).

PRODUCT STEWARDSHIPAPPENDICES

135

EMISSIONSINTRODUCTION
2022 ESG HIGHLIGHTSNON-GREENHOUSE GAS EMISSIONSNOX, SOX, AND VOCs

2022 NON-GHG ABSOLUTE EMISSIONS PERFORMANCEOUR BUSINESSECONOMY

NOx

SOx

VOCs

48%

67%

30%

Our non-greenhouse gas (non-GHG) emissions, which include nitrogen oxides (NOx), sulfur
oxides (SOx), and volatile organic compounds (VOCs), mostly come from our manufacturing
processes, including the use of chemical solvents in the photolithography process, but also fromour boilers and emergency generators.
Since 2011, we have seen a significant reduction in non-greenhouse gas emissions. This includes
decreases in emissions related to NOx, SOx, and VOCs compared to 2021 levels. However, we
still have an increase in VOCs since 2012, due in part to the expansion of the Systems on Silicon
Manufacturing Company (SSMC) facility in Singapore.

GOVERNANCE
ESG
OUR TEAM MEMBERS

Decreasefrom 2021

Decreasefrom 2021

NOx, SOx, and VOC Emissions

275000250,000

Decreasefrom 2021

225000200,000
Kilograms (kg)

ENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

175000150,000
125000100,000
75000

64%

Decreasefrom 201210%

Decreasefrom 201213%

Decreasefrom 2012

50,000
25000
0
2012

2013

2014
NOx

2015

2016

2017
SOx

2018

2019

2020

2021

2022

VOC

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

136

ENERGY
INTRODUCTION
2022 ESG HIGHLIGHTS

Long-Term Energy Ambition
100% Renewable Electricity, Contributing to Our 2035 Goal of Being
Carbon Neutral

OUR BUSINESSECONOMY
GOVERNANCE

2027 Mid-Term Energy Goal
50% Renewable Electricity Use

ESG

2022 ENERGY PERFORMANCEOUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging

35%

Renewable
Electricity Use

3%

Decrease inNormalized Electricity
Consumption from
2021

12%

Decrease inNormalized Scope 2
Emissions from 2021

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Primary sources of energy for our manufacturing, testing, and office sites come from theelectrical grid. We purchase renewable electricity when available, and continue to purchaseelectricity from fossil-fuel sources in jurisdictions where reliable and abundant alternative
energy sources are not available.
We use natural gas to power heating, cooling, and humidity-management equipment criticalto 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.
137

ENERGY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSELECTRICITY

Semiconductor manufacturing is an electricity-intensive process, with wafer fabrication
requiring more electricity than assembly and test. Electricity consumed at our nonmanufacturing sites accounts for only 3% of NXP’s total consumption.
2022 Manufacturing Electricity Consumption
2022 Manufacturing Electricity Consumption
2022 Manufacturing Electricity Consumption

ECONOMY
41%41%
41%

GOVERNANCE
ESG

59%

59%59%OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions

Assembly and Test
Assembly and Test

Assembly and Test

Wafer Fabs
Wafer Fabs

Wafer Fabs

Energy20222022
Manufacturing
vsvsNon-Manufacturing
Electricity
Consumption
Manufacturing
Non-Manufacturing Electricity
Consumption

Water

2022 Manufacturing vs Non-Manufacturing Electricity Consumption

3%3%

Waste

3%

Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP97%

APPENDICES

97%
97%

Non-Manufacturing

Manufacturing

Non-Manufacturing

Manufacturing

Non-Manufacturing

Manufacturing138

ENERGY
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSELECTRICITY RESULTS
2022 TOTAL ELECTRICITY-CONSUMPTION PERFORMANCE
Normalized

Our ongoing efforts to conserve electricity and optimize our manufacturing processes havehelped us use electricity more efficiently, in spite of increases in our manufacturing capacity
and higher demand for our products. Compared to 2012, our absolute electricity consumption
has increased only 7%, despite high product demand, and our normalized electricity
consumption has decreased by 10%.

Absolute

Normalized Manufacturing and Non-Manufacturing Electricity Consumption

3.5

ECONOMYESG

3%

Decreasefrom 2021

6%

Increasefrom 2021

2.5
2.0
kWh/cm2

GOVERNANCE

3.0

1.5

OUR TEAM MEMBERS

1.0
0.5

ENVIRONMENT
Overview

0Management

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Emissions
Water
Waste
Packaging
Hazardous Chemicals and Materials

10%

Decreasefrom 2012

7%

1750

Increasefrom 2012

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Absolute Manufacturing and Non-Manufacturing Electricity Consumption

We produce increasingly complex products that involve many more processing steps, requiring
greater electricity consumption. In 2022, we continued our expansion of our Systems on
Silicon Manufacturing Company (SSMC) wafer fab in Singapore, as well as a remote facility in
Tianjin, China. This, coupled with an increase in product demand of 9% in 2022, resulted in ourabsolute electricity consumption increasing by 6%, while our normalized electricity decreased
by 3% compared to 2021.

1,500

Gigiwatt Hours (GWh)

Energy

1250
1,000
750
500
250
0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

139

ENERGY
INTRODUCTION

ELECTRICITY CONSUMPTIONNON-MANUFACTURING

MANUFACTURING
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYTo reduce electricity consumption, our manufacturing sites continually optimize processes andreplace or upgrade equipment. Examples of this ongoing work include:• Reducing air-flow velocity in clean rooms

Electricity at our offices and R&D sites represents 3% of our total consumption. In 2022, ourabsolute non-manufacturing electricity consumption increased by 7% compared to 2021 asa result of team members returning to the office in sites where improvements relating to the
COVID-19 pandemic made this possible.
Since 2012, our non-manufacturing electricity consumption has decreased by 64%, mainly due
to site consolidations and various site-specific projects, such as switching to LED bulbs andcommunicating more with team members about energy conservation.

• Reducing and optimizing exhaust and air-extraction systems• Upgrading air dryers• Optimizing the water flows of cooling towers

GOVERNANCE• Purchasing energy-efficient chillers, compressors, and vacuum pumps• Powering equipment off when not in use

ESG• Upgrading to LED lighting

OUR TEAM MEMBERSENVIRONMENTManufacturing Electricity Consumption

Overview
Emissions

1,600

EnergySUPPLIER ENGAGEMENT

1,200

Gigawatt Hours (GWh)

Hazardous Chemicals and Materials

Gigawatt Hours (GWh)

Packaging

150

1,400

Water
Waste

Non-Manufacturing Electricity Consumption

175

1,800

Management

1,000
800
600

125
100
75
50

400

PRODUCT STEWARDSHIP

25

200

0

0

APPENDICES

2012

2013

2014

2015

Water Fabs

2016

2017

2018

2019

2020

2021

2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Assembly and Test

140

ENERGY
INTRODUCTION
2022 ESG HIGHLIGHTS

ELECTRICITY ENERGY SOURCES4

Electricity is generated from a variety of energy resources in the grid, and these resources
vary depending on region and country. Currently, we use a mix of energy sources becauseof its availability, stability, and reliability. However, our ambition is to transition to 100%
renewable electricity.

OUR BUSINESS
2022 Electricity Energy Sources From the Grid
2022 Electricity Energy Sources From the Grid

GOVERNANCE
ESG

36%36%

35%35%

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.

36%

35%

OUR TEAM MEMBERSENVIRONMENT

Renewable Energy Sources From the Grid

3%

100%

3% 3% 5%

Overview

22%

5%5%

Management

Since 2015, we have steadily increased our use of electricity that comes from renewablesources. In 2022, 35% of our overall electricity use was from renewable energy sources. Our
Nijmegen wafer fab, in the Netherlands, runs on 100% renewable electricity. We continue tolook for new ways to increase our use of renewable electricity sources through powerpurchase agreements.
Our total electricity consumption increased by 6% compared to 2021 due to significant
production increases in the Asia-Pacific region. Our manufacturing sites in the Asia-Pacificregion use a lower percentage of renewable electricity and, at the same time, the electricity
consumption at these sites increased by 10% compared to 2021. At our Tianjin facility in China,
we increased our renewable electricity percentage from 27% in 2021 to 74% in 2022. Overall,renewable energy as a portion of electricity from the grid increased by 4 percentage points toa total of 35% renewable electricity for the company overall.

2022 Electricity Energy Sources From the Grid
ECONOMYRENEWABLE ELECTRICITY

14%

17%

17%

17%

22%

20%

22%

Emissions
EnergyWater

Natural Gas

Coal

Nuclear

Other Non-Renewable

Renewable

Natural Gas

Coal

Nuclear

Other Non-Renewable

Renewable

Natural Gas

Waste
Packaging

Coal
Nuclear
Other Non-Renewable
The sum of percentages may not add up to 100% due to rounding.

23%

23%

24%

32%

31%

35%

75%

Renewable
50%

Hazardous Chemicals and Materials

86%

83%

83%

83%

80%

77%

77%

76%

68%

69%

65%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

25%

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

0%

Non-Renewable Energy

APPENDICES
4

Renewable Energy

 enewable-energy information from utility providers is published after the release of our annual Corporate Sustainability Report.
R
Utility providers are approximately one year behind our reporting schedule. We make adjustments as needed for the previous
reporting year’s data on renewable energy.
141

ENERGY
INTRODUCTION

ENERGY CONSUMPTION
NATURAL GAS

2022 ESG HIGHLIGHTSOUR BUSINESS

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. Due to colder weather and increased production,
our 2022 absolute natural-gas consumption increased 3% from 2021. Compared to 2012, ourconsumption has decreased 3%.

ECONOMYDIESEL FUELIn 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 52% less diesel in 2022
compared to 2021. The significant decrease reflects the 2021 winter storm in Austin, Texas,
which affected two of our manufacturing facilities and required extended use of ouremergency generators.

GOVERNANCE
ESG
Natural-Gas Consumption

OUR TEAM MEMBERS

Diesel-Fuel Consumption

25,000,000

150,000

20,000,000

120,000

Management
Emissions
EnergyWater
Waste

Cubic Meters (m3)Overview

Kilograms (kg)

ENVIRONMENT

15,000,000

10,000,000

90,00060,000

Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

5,000,000

30,000

0

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

PRODUCT STEWARDSHIPAPPENDICES

142

ENERGY

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

Other Fossil-Fuel Consumption

OTHER FOSSIL FUELSOther fossil fuels we use include gasoline, liquefied petroleum gas (LPG), and town gas. In
2022, our consumption of other fossil fuels increased by 36% from 2021, and has increasedby 123% since 2012.
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 ouronsite cafeterias.
Town gas, also known as coal gas, is a manufactured gaseous fuel made from coal, and isused for heating in some geographical regions, including Asia. We use town gas as part of therecent expansion at our SSMC wafer fab in Singapore, which accounts for the increase in otherfossil-fuel consumption in 2022.

45000
40,00035000
Gigajoules (GJ)

INTRODUCTION

30,00025000
20,00015000
10,0005000
0OUR TEAM MEMBERS

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

ENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

143

WATER
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 high standards for
wastewater treatment and discharge.

INTRODUCTION
2022 ESG HIGHLIGHTSLong-Term Water Ambition
Minimize Impact on Global Water Supplies

We understand that, in addition to impacting our manufacturing sites, water availability also
impacts other industrial, agricultural, and residential users in the communities where we
operate. By using less water, we can help increase the supply for others in our communities.

OUR BUSINESSECONOMY
GOVERNANCE

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 ourincreases in production. To reduce the amount of incoming water we consume, we focus on a
mid-term goal of increasing our water recycling rate to 60% by 2027.

2027 Mid-Term Water Goal
60% of Wastewater Recycled

Many of our manufacturing and testing 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 the impacts 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.

ESG

2022 WATER PERFORMANCEOUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging48%

Wastewater
Recycled

1%

Decrease inNormalized Water
Consumption from
2021

4%

Decrease inNormalized Water
Consumption from2012

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

144

WATERINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENTGLOBAL 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 ispublished by the data-analysis company Verisk Maplecroft. It quantifies baseline water stresswhere 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 theratio of water use to renewable supply, so it’s easier to visualize the inherent water stress in thearea. Within catchments, the map reflects different levels of combined demand for domestic,
industrial, and agricultural water.
2022 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

4.2

Nijmegen, Netherlands

7.9

Kuala Lumpur, Malaysia

3.4

Oak Hill, Austin, Texas, US

5.8

Tianjin, Mainland China

0.0

SSMC, Singapore

2.8

Overview
Management
Emissions
EnergyWater
Waste
Packaging

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.

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

According to the WSI evaluation tool, many of our manufacturing and testing sites are locatedin semi-arid regions, and five are identified as extreme or high risk. These manufacturing sites
may become increasingly vulnerable to water scarcity.

PRODUCT STEWARDSHIPAPPENDICES

145

WATERINTRODUCTION

Semiconductor wafer fabrication represents 66% of our total manufacturing water consumption, while assembly and test represent 34%.

2022 ESG HIGHLIGHTSAt 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, representing 6%
of our total water consumption.

OUR BUSINESS

Recycled water represented 48% of our total water use in 2022, meaning we are close to using the same amount of recycled water as non-recycled water. We identified a mid-term goal forwater 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 we recycle generates positive
results for NXP and our communities.

ECONOMY
GOVERNANCE
ESG

2022
Consumption
2022 Water
Water Consumption
2022 Water Consumption
34%

34%

2022
Retrieval
2022Water
Water Retrieval

2022
2022Water
Water Recycling
Recycling

6%6%2022 Water
Retrieval

2022 Water Recycling

6%

34%

52%

52%

OUR TEAM MEMBERS

48%

66%

ENVIRONMENT
Overview
Management
Emissions

52%

48%

48%

66% 66%

Water Fabs

Assembly and Test

Water Fabs

Assembly and Test

Water Fabs

Assembly and Test

94%

Purchased
Purchased
Purchased

94%

94%

Extracted

Recycled

Non-Recycled

Extracted
Extracted

Recycled
Recycled

Non-Recycled
Non-Recycled

EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

146

WATERINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSWATER CONSUMPTION
2022 WATER-CONSUMPTION PERFORMANCE
Normalized Consumption

Our decade-long focus on water conservation, which has emphasized the use of more efficient
tools, taking advantage of opportunities to increase water recycling, and finding ways tooptimize processes, has kept our absolute water consumption lower and has helped us achieve
a 1% decrease in normalized water consumption compared to 2012.
Normalized Water Consumption

Absolute Consumption

25

ECONOMYESG

1%

Decreasefrom 2021

8%

15
Liters/cm2

GOVERNANCE

20

Increasefrom 2021

10

OUR TEAM MEMBERS
5

ENVIRONMENT
0

Overview

2012

Management
Emissions
EnergyWater
Waste
Packaging4%

Decreasefrom 201215%

Increasefrom 2012

Hazardous Chemicals and Materials

2014

2015

2016

2017

2018

2019

2020

2021

2022

Absolute Water Consumption
14,000,000
12,000,000

Cubic Meter (m3)

10,000,000

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

2013

As semiconductor technology evolves, manufacturing processes are becoming 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 product quality and process safety.
In 2022, the demand for our products increased 9% compared to 2021. As a result of thisdemand, our absolute water consumption increased by 8% compared to 2021. However, ournormalized water consumption decreased by 1% from 2021.

8,000,000
6,000,000
4,000,000
2,000,000
0
2012

2013

2014

2015

Water Fabs

2016

2017

2018

2019

2020

2021

2022

Assembly and Tests

147

WATERINTRODUCTION

Recycled Water: Manufacturing

WATER RECYCLING

60%

2022 WATER-RECYCLING PERFORMANCE
2022 ESG HIGHLIGHTS50%

OUR BUSINESSECONOMY
GOVERNANCE
ESG

48%

of Water Recycled

1

Percentage-Point
Increase from 2021

16

Percentage-Point
Increase from 2012

40%

30%

20%
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater

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 2012, our percentage of water recycling has increased by 16 percentage points.
In 2022, our production increased 9% compared to 2021, and, as a result, total water consumption increased, too. Meanwhile, the percentage of water recycled increased by 1 percentage
point compared to 2021.
We currently recycle 48% of our water, and have created a task force to identify new opportunities for water recycling, so we can achieve our 2027 goal of 60% recycled water.

Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

148

WATERINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

WASTEWATER

We are committed to returning water to the environment that is as clean as, or cleaner 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 theenvironment 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.
In late 2020, we included wastewater discharge in our data-management system and, as of2022, publicly disclose our wastewater discharge.Our total wastewater discharge is less thanour total water retrieval because a certain amount of water is lost due to evaporation (causedby cooling towers and condensed-air humidifiers in our factories), landscape irrigation, and as
part of non-hazardous sludge disposal.
NXP did not receive any excursions, fines, or penalties in 2022 related to wastewater discharge.

Wastewater Discharge

Unit

2022

Total Wastewater Discharge

m3

8,753,231

NXP in Action
The two manufacturing sites in Texas, Austin and Oak Hill, received the city of Austin’s
2022 award for Excellence in Wastewater Pretreatment (based on 2021 performance). The
award honors significant industrial water users who exhibit environmental stewardship byproactively preventing pollution and managing wastewater discharge. This is the eighthconsecutive year for Austin to receive the award, and the seventh for Oak Hill.

OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

149

WASTE
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 fromconstruction and/or other one-time manufacturing activities.

INTRODUCTION
2022 ESG HIGHLIGHTSLong-Term Waste Ambition
Develop Collaborative Circular Economy Solutions

OUR BUSINESS

We understand that reducing or eliminating waste streams not only contributes to greater
operational efficiencies but also contributes to a more sustainable circular economy.

ECONOMY
GOVERNANCE

GOALS

2027 Mid-Term Waste Goal
90% of Waste Recycled

We continue to evolve our approach to the sourcing, consumption, and disposal of materials
critical to the manufacturing and testing of our products. We have set a mid-term goalof recycling 90% of our waste by keeping products and materials in use via reuse, resale,
repurposing, and recycling.

ESG

Our long-term ambition is to collaborate with our supply chain to develop better, moresustainable products. We know we can add value by looking at our entire supply chain
and asking, at each point in the chain, if any or all waste can be repurposed as an input
to the system.

2022 WASTE PERFORMANCEOUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

83%

of Waste Recycled

11%

Decrease in
Hazardous Waste

19%

Decrease in
Non-Hazardous
Waste Sent to
Landfill

We will continue to work with our supply chain to purchase goods and services locally, andto find alternate uses for materials we have as by-products. We believe we play a crucialrole 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 to recycle/
reuse the waste we generate. We continue to collaborate with our supply chain to identify
opportunities for waste reduction or alternative use, and look for ways to reduce manufacturing
waste by improving yield, optimizing processes, and minimizing the waste of scrap material.
As part of this approach, we do the following:• Recycle/reuse spent materials, such as sulfuric-acid waste, and then sell the materials toother companies for their use

PRODUCT STEWARDSHIP• Expand our list of recycling vendors in local regions

APPENDICES• Identify recycling vendors who can recover precious metals from our e-scrap andfinished product• Replace single-use plastic in our cafeterias, cafés, and pantries with sustainable andreusable alternatives

150

WASTE2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Manufacturing and One-Time Waste

WASTE RESULTS

25,000,000

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 not generated as part of normal
operations, but rather by unique, one-time projects. One-time waste accounted for less than
1% of total waste generation in 2022, and is not included in our normal waste metrics andanalysis unless otherwise indicated.
In 2022, our production increased and, as a result, we generated more waste. However, ourefforts to reduce, reuse, and recycle the waste produced by our manufacturing processes
improved our overall waste performance. Compared to 2021, our hazardous waste decreasedby 11%, our total amount of waste sent to landfill decreased by 9%, and our total amount of
non-hazardous waste sent to landfill decreased by 19%. We continue to review opportunities
for further improvement.

20,000,000

Kilogram (kg)INTRODUCTION

15,000,000

10,000,000

5,000,000

ESG
0
2012

2022 TOTAL WASTE PERFORMANCEOUR TEAM MEMBERS

2013

2014

2015

2016

2017

Manufacturing

2018

2019

2020

2021

2022

2020

2021

2022

One-Time

ENVIRONMENT
Overview

18%

Management
Emissions

Increasefrom 2021

EnergyWater

23%

Hazardous and Non-Hazardous Waste

Increasefrom 2012

6,000,000

Waste
Packaging
4,000,000
Kilogram (kg)Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

2,000,000

PRODUCT STEWARDSHIPAPPENDICESNXP in Action
The Bangkok, Thailand manufacturing site found a composting factory that recycles
vegetable waste and grease-trap waste.

0
2012

2013

2014

2015
Hazardous

2016

2017

2018

2019

Non-Hazardous151

WASTE2022 Methods of Disposing of Manufacturing Waste
INTRODUCTION

2022 Methods of Disposing of Manufacturing Waste
2022 Methods of Disposing of Manufacturing Waste

We have waste-reduction management programs in place at our sites to handle
hazardous and non-hazardous waste in an environmentally responsible manner.

6%6%2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYFor 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.

6%

14%14%
14%

We regularly audit our waste-management vendors to confirm they are meetingcompliance requirements, handling waste responsibly, and managing disposal withminimal impact to the environment.

GOVERNANCE

83%
83%

83%

ESG
Recycled
Recycled

OUR TEAM MEMBERS

Recycled

Landfill
Landfill

Landfill

Incineration
Incineration

Incineration

ENVIRONMENT
Overview

Disposal Methods for Manufacturing and One-Time Waste

Management
Emissions

25,000,000

EnergyWater

20,000,000

Waste
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Kilogram (kg)

Packaging
15,000,000

10,000,000

5,000,000

0
2012

2013

2014

2015

2016

2017

2018

Recycling

Landfill Non-Hazardous

Incineration Hazardous

Landfill Hazardous

2019

2020

2021

2022

Incineration Non-Hazardous152

WASTEINTRODUCTION

RECYCLING
2022 RECYCLE RATE PERFORMANCE

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY83%

of Waste Recycled

7

Percentage-Point
Increase from 2021

10

Percentage-Point
Increase from 2012

GOVERNANCE

Several new recycling streams were implemented in 2022, which helped raise our recycling
rate, as described in our “NXP in Action” callouts.

NXP in Action
The Kaohsiung,Taiwan manufacturing site installed more efficient equipment for sludge
drying and found a vendor that thermally recycles the waste sludge.

ESG
OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging

We collect and recycle a variety of materials, including office waste (paper, cardboard, beveragecontainers), cafeteria waste (food and other compostable items), items from support operations(scrap metal, wood, coolant chemicals, calcium-fluoride cakes used in wastewater treatment),
and manufacturing materials (spent acids and solvents, waste molding compound, platinghazardous waste, etc.).
In 2022, we recycled 83% of our total waste (hazardous and non-hazardous), an increase of 10
percentage points compared to 2021. Our recycling rate reflects waste-to-energy activities,
which include the conversion of non-recyclable waste materials into usable heat, electricity,or fuel through incineration. If we exclude waste-to-energy, the 2022 recycle rate is 78%. We
increased the recycle rate by continuing to search for recycling vendors who can add to ourrecycling opportunities.

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Recycling Rate

100%

80%

60%

40%

20%

NXP in Action
0%

When the Chandler, Arizona manufacturing site’s recycling partner stopped accepting
wafer boxes and plastic drums in 2021, the site quickly found a new partner and, as aresult, reduced the amount of waste sent to landfill in 2022. The new recycler only accepts
material in cubic-yard containers, so the site now cuts wafer boxes and large, 30- and
55-gallon drums into pieces that fit the specified shipping containers. To further reduce
the weight and volume of waste sent to landfill, the site also found a company that
accepts Calcium Fluoride (CaF2) cake, a byproduct of semiconductor manufacturing foundin waste sludge, which the company uses in paving and road projects.

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

NXP in Action
The Kuala Lumpur, Malaysia manufacturing site increased the recycling rate by improving
recovery, segregation, monitoring, and confirmation that certain wastes are recycled.
153

WASTEINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

E–SCRAP RECLAIM

Semiconductor manufacturing includes dealing with leftover scrap material, such as failed
products and test devices, as well as used metal, engineering materials, and silicon.
Some scrap material contains precious metals (gold, palladium, platinum, silver) and nonprecious metals (copper, nickel, tin). Our E-Scrap Program ships scrap waste to processing
plants that reclaim and recover these valuable (and potentially toxic) metals to reduce theamount of e-waste sent to landfills.
In 2022, although production increased 9% compared to 2021, our e-scrap went down,
mainly due to process-yield improvements implemented during the year. Since 2015, wehave 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 inprocess yield.

ESG
OUR TEAM MEMBERSENVIRONMENT

800,000

Emissions
EnergyWater
Waste

Kilogram (kg)Overview
Management

E-Scrap Reclaimed

1,000,000

600,000

400,000

Packaging
Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENT

200,000

0

2015

2016

2017

2018

2019

2020

2021

2022

PRODUCT STEWARDSHIPAPPENDICES154

PACKAGING

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

Packaging

The packaging we use for shipping consists mainly of paper, cardboard, and plastic. We also
use a small amount of wood, in the form of wooden pallets, to ship our products. The 2022
packaging data represents approximately half our sites. We will continue to improve datacollection related to packaging for all our sites.

5,000

4,000

In 2022, our manufacturing production increased 9% from 2021 and, subsequently, ourpackaging increased slightly as well. Packaging isn’t always directly proportional to our
production, due to packaging efficiencies and product dimensions.
We use special packaging materials to protect our products from damage during shipment.
We are committed to using specially designed packaging tubes and shipping trays that saveon space and weight and are also easy to reuse and recycle.

3,000
Tons

INTRODUCTION

2,000

1,000

We advise our customers on the possibilities for recycling our packaging. We know thatmost of our larger customers already have recycling programs in place, but we don’t receive
accurate figures on how much of our packaging is actually recycled.

0
2012

OUR TEAM MEMBERS

2013

2014

2015

2016

2017

2018

2019

2020

2019

2020

2021

2022

Total Packaging Use

ENVIRONMENT
Overview
Management
Emissions

Packaging Types

3,500

Energy
Water

3,000

Waste
Packaging

2,500

Tons

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

2,000
1,500
1,000
500

APPENDICES

0
2012

2013

2014

2015

2016

Paper and Cardboard

2017

2018
Plastics

2021

2022

Wood

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HAZARDOUS CHEMICALS AND MATERIALSINTRODUCTION
2022 ESG HIGHLIGHTSLong-Term Hazardous Chemicals and Materials Ambition
Reduce Use of Targeted Chemicals of Concern

OUR BUSINESSECONOMY
GOVERNANCE



2022 Hazardous Chemicals and Materials Performance
Eliminated Phthalates from Our Dicing Tapes

OUR TEAM MEMBERS

Overview
Management
Emissions
EnergyWater
Waste
Packaging

NXP must always comply with all relevant legislation, and aims to stay ahead of new chemicallegislation and customer requirements. Our chemical-management programs are guided
by two primary objectives. First, we must control the risks posed by chemicals used in our
production processes, in terms of team-member health and safety, as well as environmental
effects, such as pollution, climate change, and ozone depletion. Second, we must ensure thatany products and shipping materials we supply pose no or negligible risk, due to the presenceof hazardous chemicals, to our customers or the environment.

OZONE-DEPLETING SUBSTANCESESGENVIRONMENT

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, isoften clean enough for use as “virgin” raw materials in other industries. NXP works withvendors to redirect these waste streams, as applicable to other companies, while increasing
our recycling percentage.

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 these chemicals andmaterials are highly specific and vital to specific process technologies and/or products. At NXP,
we have several programs in place to regulate our use of hazardous chemicals and materials,
and we follow some of the most rigorous standards in the industry for protecting our teammembers, our customers, and the environment.
We focus on select chemicals to minimize and/or phase out based on regulatory or otherpotential 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.

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 the stratosphere.
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 moredamage the ODS does in the ozone layer. Some greenhouse gases, including HFCs, do notcontain chlorine and, as a result, have a zero ODP rating. These gases are referred to as nonODP 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 and thesesubstances are now prohibited at our manufacturing sites. When an air-conditioning systemthat 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 alreadybeen replaced or are being replaced wherever possible and practical.

Hazardous Chemicals and Materials

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESNXP takes a multi-tiered approach when working with chemicals. That includes finding safer
and/or alternative materials, providing engineering controls to separate team members
from potential emissions, providing personal protective equipment (PPE), creating standard
operating procedures that take into consideration operational risks, providing training andawareness to enhance personal safety, and routine monitoring of industrial work areas toensure hygiene monitoring, which includes monitoring the ambient air and team-member
health to ensure all controls are functioning and effective.

NXP in Action
As part of our strategy to phase out chemicals that are potentially hazardous, we haveeliminated the presence of phthalates in the dicing tapes used by our assembly and testsites. In 2021, we successfully completed the testing of alternative materials and, in 2022,
removed all remaining affected dicing tapes. This is a major accomplishment, because
each change in chemistry requires rigorous approval and qualifications in order to meet
our strict quality standards.

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OUR TEAM MEMBERSENVIRONMENT
Overview
Management
Emissions
EnergyWater
Waste
Packaging
Hazardous Chemicals and Materials

SUBSTANCES OF CONCERNPROCESSES AND PROCEDURES

GOVERNANCE

Approval Requirements for New Chemicals ​– Before any new chemicals are purchased 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 to ensure that new chemicals are not in violationof governmental requirements.

NXP is committed to the safe handling of all substances of concern. We continually search foralternative substances, and aim to discontinue using all substances of concern except thosethat don’t have a safe, proven manufacturing alternative.
An internal Chemical Management Committee meets regularly to review current and pending
regulations, such as the Registration, Evaluation, Authorisation and Restriction of Chemicals(REACH) and the Restriction of Hazardous Substances (RoHS), as well as the requirements ofvarious 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 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 Product Compliance.
Working collaboratively, the Committee has succeeded in implementing global processes andprocedures that serve to keep our team members safe and minimize 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), with the exception of a small amount (less than 1 kg annually)that is being phased out of the Oak Hill manufacturing site over the next years.

NXP Corporate Chemical Control Standard​– Provides direction regarding chemical controls,
approval of chemicals, transport of chemicals, reporting, and other requirements to or
by Corporate EHS.

Prohibited and Restricted Chemicals Standard​– Corporate EHS maintains a list of chemicals
that are either prohibited in manufacturing or restricted, meaning their use is limited to specificapplications and accompanied by detailed risk-mitigation measures. Any onsite usage isreviewed and approved by managers via an electronic waiver system​. The list of prohibited andrestricted 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 such chemicals.
Management​of Safety Data Sheets – Safety Data Sheets are managed in a corporate systemthat allows for global NXP reporting​. Local team members are able to view all site-applicabledata sheets as needed for their job functions.
Environmental Product Centralized Database – We use databases to register and classify
substances used in our products. Following the same approach as with process chemicals,
restrictions of product substances are based on current and upcoming 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 the compliance of our materials.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

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




SUPPLIER ENGAGEMENTENGAGING WITH OUR SUPPLY CHAIN ON
SUSTAINABILITY ISSUESOVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

SUPPLY-CHAIN GOALS
100% Key Suppliers Sign
Supplier Code of Conduct
Conformity Statement

85% Corrective Action Plan
Closure Rate

100% Certified Mineral
Smelters

Supply-Chain Due Diligence
and Collaboration

ESG
OUR TEAM MEMBERS

2022 SUPPLIER ENGAGEMENT PERFORMANCEENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIP

99%

88%

of Suppliers Signed
the NXP Supplier
Code of Conduct
Conformity
Statement

Closure Rate on
Corrective Action
Plans for Supplier
Audits Past 90Day Maturity

99%

Certified Mineral
Smelters

Follow-Up DueDiligence Surveys with
External Manufacturing
Partners and Wafer Supplierson the Use of Polycrystalline
Silicon Originating from
Regions Deemed High
Risk for Forced Labor

APPENDICES

159

OVERVIEW
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYNXP is committed to ensuring that working conditions in our supply chain are safe, that workers are treatedwith respect and dignity, and that our products and processes are environmentally responsible.
NXP has business relationships with more than 10,000 suppliers globally. Our suppliers range from external
manufacturing partners and direct materials suppliers to labor agents, tool and machine manufacturers,
logistics providers, packaging services, and onsite service providers for NXP and supplier facilities.
We take a collaborative approach to supplier and contractor relationships, observe applicable rules of law,and demonstrate respect for ethical business, environmental, and human-rights practices. To help drive
continuous improvement, we conduct annual risk assessments and audit those suppliers identified in therisk-assessment process.

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct

Looking Ahead
Our goal is to continue working closely with suppliers who have had audit nonconformances or
priority violations, to ensure they fully understand our standards and are equipped with the skills
and knowledge to avoid recurrence. 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
will launch 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.

Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICES

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SUPPLIER ENGAGEMENT
Overview

We hold our suppliers accountable for responsible conduct and performance by requiringthem to comply with applicable laws and regulations and the NXP Supplier Code of Conduct.
The NXP Supplier Code of Conduct is owned by the Sustainability Office, approved by the
ESG Management Board, and based on the NXP Code of Conduct, the Responsible Business
Alliance’s (RBA) Code of Conduct version 7.0, the Universal Declaration of Human Rights(UDHR), UN Guiding Principles, the International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work, the Organization for Economic Cooperation
and Development (OECD) Guidelines for Multinational Enterprises, and guidelines fromSocial Accountability International (SAI), and the Ethical Trading Initiative (ETI). The NXP
Supplier Code of Conduct also includes elements, modifications, and clarifications fromaudits conducted internally and externally, as well as the NXP Auditable Standards on Social
Responsibility.
The Supplier Code of Conduct is reviewed annually, and had a major revision and update in
2021 in response to regulatory updates, customer requirements and expectations, industry
best practices, and inputs from internal and supplier audits.
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 compliance with applicable laws, regulations, and customer requirements related tothe supplier’s operations and products; (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 to their own suppliers.

Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICESNXP in Action
In 2022, after a suspension of two years due to the COVID-19 pandemic, we restarted
capacity-building activities with our supply-chain partners. In Malaysia, for example, we
provided in-person training to 152 suppliers, covering the requirements of NXP’s Supplier
Code of Conduct and recommendations on how to comply with those requirements. The
training program also gave us a way to get feedback from suppliers about their concerns
and challenges.
Our capacity-building activities also included our internal Procurement Team. We
conducted a virtual training session for 50 team members, covering the requirements
of NXP’s Supplier Code of Conduct, our program for social-responsibility audits in the
supply chain, and our requirements for restricted substances and responsible minerals.

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SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIP

SUPPLY-CHAIN DUE DILIGENCE

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 our requirements.
Suppliers undergo an annual supplier risk assessment. In 2022, 267 suppliers received a riskassessment score above 49%, indicating high or priority risk, and, as a result, may be required
to complete an NXP Self-Assessment Questionnaire and/or participate in an audit.
NXP works collaboratively with suppliers to help them achieve and maintain our standards andexpectations. Our preference is to work with suppliers to address potential deficiencies byhelping them develop and implement a corrective action plan.
In 2022, the 14 supplier audits we completed identified a total of 710 nonconformances. Of
those nonconformances, 530 reached the 90-day maturity mark. We closed 466 of those 530
nonconformances, yielding a closure rate of 88% for audits at or beyond the 90-day mark, andexceeding our goal of an 85% closure rate. We did not terminate business with any of these
suppliers, in light of their willingness to take the steps needed to close their corrective andpreventative action plans.
The number of nonconformances increased because we conducted more audits in 2022
compared to 2021, but also because our audits focused on high-priority suppliers that we
knew were having challenges conforming to our requirements. We engaged actively with our
suppliers to understand how the COVID-19 pandemic and post-pandemic challenges impacted
their businesses and the well-being of their employees.
Using data obtained from the supply-chain pulse survey, conducted at the onset of the
COVID-19 pandemic in 2020, we continued to engage, through our due-diligence audit
program, with those suppliers whose survey answers suggested business impact from the
COVID-19 pandemic.

ASSESSMENTS AND AUDITS

As part of our annual risk-assessment analysis, we endeavor to assess all of our suppliers. Yearlyrisk assessments enable NXP to identify and monitor trends and developments relating tohuman 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 ordifferent 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 forced labor, child labor, and working
conditions. Verité Cumulus provides NXP with online technology to identify forced-labor andhuman-trafficking risks of labor agents involved in the recruitment of migrant workers. Verité
Cumulus also maps and assesses labor agents, in both the receiving and sending countries
and regions, along with their recruitment practices.

RISK ASSESSMENT

Our supplier risk assessment, developed jointly with our procurement and sustainability teams,
is reviewed and updated to reflect changing perspectives in environment, labor, and humanrights 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 afootprint. Each criterion has a scale of one (lowest risk) to ten (highest risk). The overall supplierrisk score is the product of the three individual scores, expressed as a percentage. A higher
percentage implies a higher risk exposure.

Risk Score =[(Country Risk) x (Product or Service) x (Spend)] x 100
1000

APPENDICES

162

SUPPLY-CHAIN MANAGEMENT

2022 ESG HIGHLIGHTSCountry 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.

OUR BUSINESSUse 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 areview by the Sustainability Team.

INTRODUCTIONECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPThe table below presents the criteria used to assess country risk.
Relevant Topic in NXP
Supplier Code of Conduct

Index Weighting

Measures the risk of association with, and involvement in, violations of labor rights withina 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%

Quantifies the quality of corporate governance, based on the quality of existing legal
structures, and the extent to which the law is enforced. Includes the following indicators:
shareholder protection, ethical behavior of firms, strength of auditing and reporting
standards, efficacy of corporate boards, and corruption-risk index.

Business Ethics

20%

Legal and Regulatory Identifies and monitors the strategic and operational risks presented by variations inEnvironment
regulatory and government policy, the costs associated with corruption, and lack ofrespect for the rule of law.

Governance10%

Climate-Change
Vulnerability

Environment

10%

Maplecroft Report

Index

Definition

Human-Rights
Risk Atlas

Labor Rights andProtection

Legal and
Regulatory
Environment
Risk Atlas

Corporate
Governance

Legal and
Regulatory
Environment
Risk Atlas
Climate Change
and Environmental
Risk Atlas

Evaluates vulnerability of populations to extreme, climate-related events, and changes inmajor climate parameters over the next 30 years.

APPENDICES

Scale Used in Maplecroft Scorecard

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

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Product/Service Risk
How close a supplier’s materials or services are to our products influences the risk they
represent in our value chain. External manufacturers pose the highest level of product risk to
NXP. Material suppliers and manufacturing-service subcontractors pose the second-highest
product risk.

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.

The risk level for indirect-spend suppliers, which includes sourcing of all goods and services
for NXP business and operations, such as equipment suppliers and indirect service providers,
depends on the type of product or service provided. NXP groups suppliers based on the risk
score, which we compile internally, using data from years of auditing, third-party guidance,
benchmarking, and standards.

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

Category

Type of Service

Risk Score

External Manufacturing Suppliers (Foundry and Subcontractor)

10

Category 1

7

Direct Material Suppliers

Risk Score

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

Warehousing
Logistics

SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIP

HR-Related Services (Recruitment Agencies)
Construction and Renovation Services
Category 2

3

Capital Goods (Plant and Machinery)
Maintenance Repair and Operations

APPENDICES

Category 3

1

Professional Services (Consultancy, Advisers)
IT-Related Services
Office Services (Telecommunications, Office Products)
Utilities (Gas, Electricity, Water)
Travel-Management Services
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OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

AUDITS

NXP’s Social Responsibility Audit Program is a collaborativeand consultative process aimed at guiding suppliers andensuring they meet the NXP Supplier Code of Conduct aswell as the requirements of the NXP Auditable Standards
on Social Responsibility. The scope of the audit covers laborand human rights, environment, health and safety, businessethics, management systems, and compliance with the NXP
Supplier Code of Conduct. These audits are conducted todetermine and understand suppliers’ maturity in managing
social responsibility and how they can improve their processes
and procedures in these areas. The audits are not intended
to pass or fail a supplier, but rather to guide the supplier in acollaborative approach. The NXP Supplier Code of Conduct
and the Auditable Standards apply to all NXP suppliers,
contractors, onsite service providers, labor agents, andexternal manufacturers.
NXP supplier audits analyze three main aspects of social
responsibility: documentation reviews, management andprivate worker interviews, and physical inspection of all
facilities, including any dormitories (onsite audit only). Audits
also include interviews with labor agents and onsite service
providers, such as janitorial, cafeteria, security, and otherservices. The NXP Social Responsibility Audit Program isconducted in accordance with the defined process flow
shown on this page.

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

Supplier
Corrective
Action Plan
No

Supplier SelfAssessment
andPreparation
for Audit

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

PRODUCT STEWARDSHIPAPPENDICES

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SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICES

Risk Assessment
The process starts with an annual NXP Supplier Risk Assessment to evaluate which suppliers
have a high priority to be audited by NXP.
Training
Once a supplier is selected for an audit, NXP consults with selected suppliers to determine if
additional training is needed.
Self-Assessment
The supplier then completes the NXP Supplier Self-Assessment and sends it back to NXP,
including any applicable policies and documentation.
Onsite/Remote Audit
The audit is led by a team of auditors from a third-party audit firm qualified by NXP andaccompanied by an RBA-trained NXP auditor. Depending on the size and complexity of the
supplier’s operations, a typical audit requires two or three full days (onsite audit), or about 18
days (remote audit).
Corrective Action Plan
If the audit yields a nonconformance, the supplier must submit a corrective action plan within
two weeks of issuance of the final audit report. An effective corrective action plan includes
remediation plans that fix the nonconformance and create a management system to preventthe issue from reoccurring. Audits use classifications for corrective action plans: priority
violation, major nonconformance, and minor nonconformance.

Annual Review
Upon completion of the annual audit cycle, NXP conducts a review to determine if any
suppliers that were audited in the preceding year will be required to be re-audited, based on
the severity of the previous audit results.
This video has more about our Social Responsibility Audit.

TRAINING

Training focuses on our suppliers and their onsite service providers. The mode of training can
be a one-to-one consultation training, a two-hour classroom training, or a webinar session
conducted by the NXP Social Responsibility Team with support from the site’s subject-matter
experts. The training is the full requirement of the NXP Supplier Code of Conduct. Suppliertraining 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 partof our supplier trainings.

• Priority violation – The supplier is given the opportunity to improve performance, but
the response and resolution of the violation is non-negotiable. If there is immediate risk oflife, the supplier has 24 hours to complete the corrective action. Otherwise, the supplier
has seven days to submit a corrective action plan and 30 days to complete the plan.
Unresolved priority violations may result in the withdrawal or termination of business.
• Major and/or minor nonconformance – All corrective actions must be approved by NXP
and, unless otherwise negotiated or approved, must be fully closed within 90 days. Withinthat 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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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 have started increasing the number of onsite audits and are closer to our prepandemic averages. In 2022, we managed to conduct 14 audits, using a combination offormats, including onsite and remote audits. We conducted more onsite audits in 2022 thanin 2021, and conducted only two remote audits in 2022. We also worked with our third-party
auditing firm, Verité, to develop a new protocol for remote audits, so we could continue ourdue-diligence work with suppliers.

During the pre-assessment period, the Audit Team and the supplier hold videoconference
calls to validate collected information, agree on a timeline, discuss confidentiality, and address
data-privacy concerns. Technical rehearsals serve to confirm that the supplier has access tothe videoconferencing platform selected for the audit, and that interview sessions, held withrandomly selected workers, will take place in a location with adequate privacy. During the audit
proper, the Audit Team conducts the actual interviews with supplier management and workers,
and reviews any documents and data, such as employee personnel files and pay slips, that
can’t be shared in advance.

Under normal circumstances, a typical onsite audit takes only two or three days to complete.
Remote audits, however, are significantly more complex, and are usually spread over an 18-day
period that includes pre-assessment meetings, technical rehearsals, and the audit proper. Mostof that time is spent on pre-audit preparations and desktop document reviews.

Limitations of Remote Audits
Remote audits have given us a way to perform due diligence during the COVID-19 pandemic,
but they are, for several reasons, only a temporary solution, not suited for long-term
replacement of onsite audits. To begin with, remote audits are limited in scope, focusing
primarily on labor, human rights, and ethics. They leave out the assessment of environment,
health, and safety (EHS) concerns, since extensive facility inspections aren’t feasible with aremote process. Also, certain documents cannot be shared in advance, and screen sharing
makes it difficult to review data and records effectively. What’s more, it’s easier, during an
in-person interview, to keep people engaged, ask follow-up questions, and observe bodylanguage and facial expressions.

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OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICES

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

We do see remote audits as a useful tool for follow-up or verification audits with suppliers who
performed well in their initial audit, and as a good alternative for suppliers who already have amature and strong social-responsibility program in place.

Audit Scope

Video Devices

Management Interview

ONSITE AUDITS

Identification of Auditee
Resource Personnel

Align Video-Conferencing
with File-Sharing Platform

Gathering Information fromWorkers

Overview of TechnicalRequirements

Employee Roster

Closing Meeting

Onsite audits of our suppliers can be announced or unannounced, conducted by an approved
third-party audit firm, and accompanied, at a minimum, by an NXP-certified RBA Lead Auditor.
It is NXP’s principle to understand the issues that arise during an audit, verify that the audit
is conducted per the NXP Auditable Standards, and provide consultation if the supplier has
challenges.

Overview of Document
Review Process
Confidentiality and DataPrivacy Concerns

167

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICESRBA 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 thesocial, ethical, health-and-safety, and environmental performance of RBA members and their
supply chain as measured against their audit criteria.
In 2021, we extended our Audit Program by incorporating two RBA VAP audits at two of our
suppliers who have demonstrated maturity in their social-responsibility performance. Moving
forward, NXP will look to employ RBA VAP audits at more of our mature suppliers. More detailsof the RBA VAP protocols can be found here.
The goal of the VAP is to help streamline a process that has frequently resulted in audit fatigue
for suppliers subjected to multiple, similar audits by industry members. A VAP audit may beinitiated by any RBA member, and audit results are available to any other member company
working with that supplier. Report sharing is predicated on a Trading Relationship, between themember company and the audited supplier, in the RBA-Online system1. It is the responsibilityof the member company initiating the VAP audit to review, approve, and verify corrective
actions from the audit.

VALIDATION

Each year we report publicly on our supplier’s annual top audit nonconformances, and eachmonth we report key performance indicators (KPIs) to the Sustainability Office on topics suchas violations and nonconformances from our supplier audits, signed conformance letters,
closure rate for corrective action plans, and quarter-on-quarter risk indicators within our supply
chain. NXP monitors improvement by measuring the number of priority violations, repeat
audits, frequency of nonconformances, and the nonconformance closure rate.
Reports are reviewed frequently throughout the year by the Environmental, Social, andGovernance (ESG) Management Board, which is composed of NXP executive and nonexecutive leadership. The ESG Management Board discusses the progress that has been
made, areas for improvement, and new targets. Quarterly reviews are conducted with the
Ethics Committee, and monthly reviews are conducted with the Quality Leadership Team.
Monthly and sometimes weekly meetings are held with procurement managers to discuss theresults of a supplier audit, the corrective action plan, and the supplier’s progress toward closing
out their nonconformances.

WORKPLACE GRIEVANCE MECHANISMS

Suppliers are required to have workplace grievance mechanisms in place that ensure theconfidentiality, anonymity, and protection of whistleblowers who may report any complaints,
issues, or concerns. The grievance mechanism must be available in the workers’ languages.
Suppliers must train their workers on the grievance mechanism and communicate the process
to them, so workers can raise concerns without fear of retaliation. Suppliers must state in apolicy that they will not tolerate any retaliation by management or any other person or group,
directly or indirectly, against anyone who, in good faith, makes an allegation of misconduct
or wrongdoing, or who helps management or any other person or group investigate anallegation. 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, andconcerns reported through the grievance mechanism. During a supplier audit, the auditor tests
the grievance mechanism thoroughly. During a private worker interview, questions regarding
the ways to report a grievance are discussed. After the interview, the auditor provides theworker with the NXP third-party grievance card, which they can use at any time and for any
reason to make an anonymous report in the local language.
NXP acknowledges that we are putting the worker in a vulnerable situation with a privateinterview, where potential negative impacts could occur, such as retaliation or discrimination.
NXP addresses this by providing the NXP grievance mechanism and an agreement with the
supplier that retaliation or discrimination will not occur. Any cases of retaliation reported will
initiate an investigation and, if substantiated, will prompt NXP to take appropriate measures,
including possible termination of business with that supplier.
Resolving Allegations Raised From our Grievance Mechanisms
We monitor and assess compliance, and investigate every allegation. These investigations may
involve the NXP Ethics Committee. If a problem is detected, we analyze the root cause andmodify the relevant internal control system to prevent a possible recurrence. Acknowledgments
are sent as soon as possible after receiving the complaint and investigation records are
updated regularly. No allegations were received in 2022.

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.

1

168

SUPPLY-CHAIN MANAGEMENTINTRODUCTION

SUPPLIER ASSESSMENT AND AUDIT RESULTS
2022 SUPPLIER RISK ASSESSMENT

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYWe annually conduct a supplier risk assessment to determine our audit schedule for highrisk suppliers. Risk is calculated according to three scoring categories – country, product, andspend risks – which assigns a risk factor as either <50% (medium risk), 50% – 70% (high risk),or 71% – 100% (priority risk). In 2022, we assessed 6,437 suppliers and identified 130 mediumrisk suppliers, 118 high-risk suppliers, and 19 priority-risk suppliers. The 2022 supplier risk
assessment identified priority-risk suppliers in two countries/regions, Mainland China
and Malaysia.
Suppliers by Country and Region from 2022
Annual Risk Assessment

GOVERNANCE
100%

0.8%

ESG

5.1%

3.8%

OUR TEAM MEMBERSENVIRONMENT

2.5%
1.7%

10.0%

75%

28.5%

40.7%

SUPPLIER ENGAGEMENT

68.4%

Overview
Supplier Code of Conduct
Supply-Chain Management

50%

13.8%

1.5%
2.3%

PRODUCT STEWARDSHIP

23.7%

13.8%

APPENDICES

25%

6.8%
31.6%
25.4%

19.5%

0%
<50%: Medium-Risk Score

50% – 70%: High-Risk Score

71% – 100%: Priority-Risk Score

TaiwanSingapore

Malaysia

Mainland China

Korea

Japan

USA

ThailandPhilippines

Portugal

169

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYSUPPLIER-AUDIT OVERVIEW

Since 2013, when we began our Supplier-Audit Program, we have conducted 184 supplieraudits. That includes labor-agent audits as well as verification audits, which began in 2014.
In 2022, we conducted 12 announced onsite audits and two remote audits for suppliers
located in Mainland China, Malaysia, Taiwan, and Thailand.

During an audit, worker interviews are conducted in private and at random. To determine thenumber of worker interviews to be conducted, we take the square root of the worker population.
In 2022, 402 random worker interviews were conducted, involving 51% men and 49% womenwith varying lengths of service and age range.

In addition to the 14 supplier audits we conducted ourselves, we reviewed and monitored 15
RBA VAP audits initiated by other RBA members with the same supply base.

GOVERNANCE
ESG

New Supplier Audits and Veriﬁcation Audits
25

OUR TEAM MEMBERS

22%

20

75%

Overview
Supplier Code of Conduct

Number of Audits

ENVIRONMENT
SUPPLIER ENGAGEMENT

6%

10%

18%

10%

11%

5%

3%

19

21

16

17

15

13

14

2013

2014

2015

2016

New Audits

2017

2018

2019

Verification/Closure Audits

2020

2021

48%

48%

14%
38%

25%

23%

64%

20%
25%

7%

50%

27%

2014

2015

2016

2017

2018

7%

25%

12%

11%

2013

46%

18%

24%

2022

25%

15%

24%

12%

6

0

8%

7%

25%

0%

8%

13%

35%

9
4

24%

24%

56%

7%
20%

18%

50%
10

6%
6%

14%

7%

15

5

APPENDICES

7%

24%

Supply-Chain Management

PRODUCT STEWARDSHIPSupplier Audits by Country and Region

100%

2019

2020

13%

14%

2021

2022

TaiwanMainland China

Japan

Singapore

Malaysia

Philippines

South Korea

Indonesia

ThailandHong Kong

170

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSSUPPLIER AUDIT NONCONFORMANCE RESULTS

Audits conducted in 2022 addressed a selection of high-priority suppliers who had previously
been audited to a social-responsibility standard. We chose to re-audit these suppliers to see if
the NXP Supply Chain Program has enhanced social-responsibility performance and improved
working conditions for their workers. At three of the five suppliers we had previously audited, we
noted a maturity in social-responsibility practices and found they had improved on their previous
performance. We will continue to work with our suppliers as they implement our standards into
their business practices and management systems.

ECONOMY
GOVERNANCE
ESG

Number of Nonconformances by Rating
70
35

800
322

60
42

248

600

53

228

12

ENVIRONMENT
400

105

SUPPLIER ENGAGEMENT

34
191

555

200

33

489

13

148

2015

2016
Priority

20
5

314

2017
Minor

2018

2019
Major

56
51

204
336

2014

30

12

0
2013

PRODUCT STEWARDSHIP

40

246

473

388

50

345

Supplier Code of Conduct
Supply-Chain Management

Number of Nonconformances per Number of Audits

1,000

OUR TEAM MEMBERS

Overview

Two ratios – the number of nonconformances identified compared to the number of audits
conducted, and the number of priority violations identified compared to the number of audits
conducted – are higher in 2022 than in 2021. There are several reasons for this. To begin with,
we conducted more audits in 2022, and this tends to increase the number of nonconformances
we find. Also, our 2022 audits included a number of high-priority suppliers that we knew were
facing challenges due to the COVID-19 pandemic. We based our selection, in part, on our 2020
supplier pulse survey, which was conducted during what proved to be the most challenging
phase of the COVID-19 pandemic.

5

69

75

76

80

2020

2021

332

35

38
29

26

23

10
0

2022

43

27

21

1

1

2

2

1

0.6

0.7

1

0.8

2013

2014

2015

2016

2017

2018

2019

2020

2021

2

2022

Total Number of Nonconformance per Total Number of Audits
Total Number of Priority Violations per Total Number of Audits

APPENDICES

171

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS

Identifying the total number of nonconformances per country/region helps the Audit
Team determine country risks, complete the annual assessment of supplier risk, andstrategize the priorities of future audit planning. In 2022, we focused our supply-chain
audits on Malaysia, because we anticipated that tight COVID-19 pandemic restrictions
would impact the businesses and operations of that country/region's suppliers andtheir workers.

ECONOMYCalculating nonconformances using our five categories of standards helps us to identify
trends, provide a strategic focus, and adjust our engagement plan to continue improving
our supply chain.
With the shift back to mostly onsite audits, we are better able to identify gaps andnonconformances that are harder to identify with remote audits. While two categories – Laborand Human Rights and Health and Safety – continue to dominate our findings, onsite audits havemade it easier to observe and assess actual practices, and this has lead to an uptick in Healthand Safety nonconformances. In addition, being able to engage with and interview workers,
face-to-face, allows us to better assess their well-being.

2022 Nonconformances by Country and Region

GOVERNANCE

Nonconformances by Category

500

100%

28

ESG

1%

2%

5%

6%

17%

400

4%
16%

75%

204

OUR TEAM MEMBERS

15%

1%

19%

300

ENVIRONMENT

50%
200

22%

20%

1%

2%

2%

1%

7%

6%

5%

8%

13%

16%

19%

20%

21%

21%

38%

39%

2017

2018

19%
22%

22%

13%

12%

21%

7%
19%

28%

1%
2%

1%

1%

6%

7%

14%

6%

21%

28%

18%

11%

44%

49%

2020

2021

14%

18%

25%

SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

242

100

0

2
16
12

Mainland China

PRODUCT STEWARDSHIP

1Malaysia
Priority

Major

2

61

64

36

42

TaiwanThailand

Minor

25%
35%

33%

37%

2013

2014

2015

45%

37%

36%

0%
2016

2019

Labor and Human Rights

Health and Safety

Management Systems

EthicsEnvironment

General2022

APPENDICES

172

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS

After ten years of auditing our supply chain, and identifying more than 5,000 nonconformances,
we target the top five as illustrated below. Although 2022 included two remote audits anddid not evaluate all five categories, Freely Chosen Employment is still the most frequently
reoccurring nonconformance.
12%

Top Five Nonconformances by Category 2013-2022

ECONOMY8%• Rest Days – The four priority findings for Rest Days were identified at three suppliers in
Malaysia and one in Mainland China. Workers in these facilities had worked for six straightdays without a rest day.

6%
10%

ESG

4%

OUR TEAM MEMBERS

2%• No Fees – We identified nine priority violations on No Fees and their related findings, forforeign migrant workers hired at five suppliers in Malaysia. The workers paid recruitment
fees and had their wages deducted to repay any debts owed to labor agencies for advanceson these fees.
• Working Hours – There were nine priority findings for Working Hours, identified in Malaysia(six), Mainland China (one), Taiwan (one), and Thailand (one), where workers were found tohave worked more than 60 hours per week, including overtime work.

10%

GOVERNANCE

In 2022, the top three categories of priority findings were No Fees, Working Hours,
and Rest Days.

7%
6%

5%

5%

Wages andBenefits

HumaneTreatment

0%

ENVIRONMENT

Freely Chosen
Employment

Emergency
Preparedness

Working Hours

SUPPLIER ENGAGEMENT
Overview
Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIPAPPENDICES

The 14 audits conducted in 2022 uncovered 33 priority violations.
Top Three Categories of Priority Violations

2022

No Fees

9

Working Hours

9

Rest Days

4

173

SUPPLY-CHAIN MANAGEMENTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

AUDIT CLOSURE RATE

In 2018, we set a goal to close 80% of our supplier nonconformances within a 90-day timeframe.
In 2021, we set a new goal at an 85% closure rate. We chose this 5% increase after reviewing
improvements in closure-rate performance from audits performed in 2019 and 2020. We
continue to provide a 15% threshold since we understand that some corrective actions, such asmonetary investments and COVID-19 pandemic-related labor shortages, which impact working
hours, typically require more than 90 days to close.

While it is our goal to achieve the targeted closure rate, indicated by the dotted line, ultimately
we aim for 100% closure on all audit nonconformances found within the calendar year. We
continue to work with audited suppliers to fully close the remaining nonconformances in thesubsequent year. As of this reporting, we have closed the one remaining finding from 2019, andhave five open nonconformances, associated with one supplier, from 2021. We continue to workwith that supplier to close all five.

In 2013, when we began auditing suppliers, our closure rate was around 40%. Throughcontinuous collaboration with our suppliers, our closure rate has continued to increase or
remain high year over year.
The closure rate for 2022 was 88%, compared to 89% in 2021. The lower closure rate is largely
due to the fact that we conducted nearly twice as many audits in 2022. The lower rate can also
be attributed to increased strain on the supply chain during the pandemic, and the production
ramp-up to overcome the semiconductor shortage. These overlapping trends created ongoingchallenges at our suppliers, in terms of working hours and labor supply, in 2022. In particular, thelabor supply had more nonconformances relating to recruitment practices, including recruitment
fees being charged to workers — especially foreign migrant workers — and the retention ofworkers’ personal documents. These types of audit findings require more time to investigate,
since we need to determine the actual amount of recruitment fees charged to workers and theamount suppliers will reimburse to affected workers.

SUPPLIER ENGAGEMENT
Overview

ClosureRate
Closure Rate

Supplier Code of Conduct
Supply-Chain Management

PRODUCT STEWARDSHIP

100% 100%60%

APPENDICES

Closure Rate80%
80% 100%

40%
20%
0%

60%
80%
40%
60%
20% 71%
40%
0%
20%
0%

85%

71%

85%
85%

71%

2018

20182018

2019

97%

97%
97%

2020

Actual Closure Rate

2019
2019

2020
2020

ActualClosure Rate
Rate
ActualClosure

89%

88%

89%

88%

89%

88%

2021

2022

Closure-Rate Goal

2021
2021

2022 2022

Closure-Rate
Goal Goal
Closure-Rate

174



PRODUCT STEWARDSHIPMINIMIZING THE ENVIRONMENTAL AND SOCIAL IMPACTOF EACH PRODUCT WE DESIGN AND PRODUCEENVIRONMENTAL PRODUCT COMPLIANCE
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP
Environmental Product Compliance
Responsible Mineral Sourcing

APPENDICESOUR APPROACH

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

NEW PRODUCT DESIGN

To address current and future requirements for complianceduring the design phase, we established the Environmental
Compliance Organization for Products (ECO-Products) as partof the management systems for introducing new products andtechnologies. Checklists of currently banned materials, as well
as chemicals that may be problematic for particular markets,
are considered early in the design phase. This translates to
products that are more resilient and more marketable for ourcustomers.

SUPPLIER REQUIREMENTS

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 touse appropriate methods, such as internal design controls,
declarations, and analytical testing, to ensure accuracy andcompleteness, and attest that information is correct to the bestof their knowledge.
Suppliers must meet the requirements of the NXP ECOProducts 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 andcomplies with a host of product regulations across multiple
global jurisdictions. We also go beyond what is required by
local, regional, and global laws.

NXP anticipates that sustained stakeholder interest in productresponsibility may result in new or updated regulations
and exemption lists. This, combined with the arrival of new
chemical substances, means compliance remains a challenge
and we will maintain on-going diligence. See below to learn
more about NXP’s efforts.
Regulatory Compliance Resources
Environmental Compliance Overview
EU RoHS Statement
China RoHS
REACH Statement
ELV Statement
WEEE Statement
EU Packaging Statement

The EU Directive 2008/98/EC on Waste,commonly known as the Waste Framework Directive (WFD),
sets stringent requirements on waste management, recycling,
and recovery of products manufactured in, supplied to, or
imported to the European Economic Area. A new amendmentof the WFD (Directive 2018/851) requires companies to provide
information on articles supplied to the EU market containing
Substances of Very 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 ofconcern 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 ofconcern in articles and initiate appropriate actions over thewhole lifecycle of articles, even at the waste stage.

Responsible Mineral Sourcing Overview and Reports

At present, NXP has submitted 46 SCIP notifications, covering
about 3600 products, to the SCIP database. These products
appear in the public ECHA SCIP Databases.

Product Content Search

OTHER REGULATIONS

California Proposition 65 Statement

SUBSTANCES OF CONCERN IN PRODUCTSSCIP ESTABLISHED UNDER THE WASTE FRAMEWORKDIRECTIVE

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 Substancesin the Montreal Protocol.

In 2021, NXP became subject to a new EU reporting
requirement known as the “Substances of Concern inarticles as such or In complex objects (Products)” or “SCIP”
database reporting.

176

ENVIRONMENTAL PRODUCT COMPLIANCE
INTRODUCTIONENVIRONMENTAL PRODUCT COMPLIANCE PERFORMANCEEU ROHS-COMPLIANT PRODUCTS

2022 ESG HIGHLIGHTS

NXP’s RoHS-compliant semiconductor devices contain no more than 0.1% lead (Pb) by weight
per homogeneous material, unless exempt by the EU RoHS Directive (2011/65/EU).

OUR BUSINESS

NXP’s Pb-free initiative commits to the removal of Pb from our entire product portfolio without
impacting technical specifications or customer manufacturing processes. For many years, themajority of our Dual In-Line Packages (DIPs), Single In-Line (SIL) packages, and Quad Flat
No-Lead (QFN) packages have been Pb-free. While most customers have shifted to Pb-free
products, we continue to manufacture some that contain Pb for those who require it. Our
customers who use NXP’s Pb-containing products in their end products are responsible fordeclaring compliance status. We only sell non-RoHS-compliant products, when required by ourcustomers, for use in legally allowed applications.

ECONOMY
GOVERNANCE
ESG

2022 RoHS Product Portfolio
2022RoHS
RoHS Product
Portfolio
2022
Product
Portfolio

OUR TEAM MEMBERS

1.3%
5.4%

5.4%
5.4%

ENVIRONMENT

1.3%

1.3%

HALOGEN-FREE PRODUCTS

Our goal is to maximize the number of products that are free of halogens, a chemical categorythat includes chlorine, bromine, and antimony. The threshold for halogen-free is set at 900 ppm
1
at the homogeneous level.
2022 Halogen-Free Product Portfolio

2022 Halogen-Free Product Portfolio
2022 Halogen-Free Product Portfolio
4%
4%
4%

96%

Halogen-Free

Not Halogen-Free

96%

96%
Halogen-Free
Contains Halogen

Halogen-Free
Halogen-Free

NotHalogen-Free
Halogen-Free
Not

Halogen-Free
ContainsHalogen
Halogen
Halogen-FreeContains

Pb-FREE AND HALOGEN-FREE PRODUCTS

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

93.3%

Environmental Product Compliance

RoHS-Compliant

Responsible Mineral Sourcing

Non-RoHS-Compliant

APPENDICES

RoHS-Compliant
RoHS-Compliant
Non-RoHS-Compliant
Non-RoHS-Compliant

RoHS-Compliant
RoHS
Compliant
Non-RoHS-Compliant
with Exemptions

RoHS-Compliant with Exemptions

93.3%
93.3%

RoHS-Compliant
RoHS-Compliant
RoHS
Compliant
Non-RoHS-Compliant
withExemptions
Exemptions
RoHS
Compliant
Non-RoHS-Compliant
withWe offer products that are Pb-free (also known as lead-free) and halogen-free because webelieve it is important to develop eco-friendly products and integrate environmental safety
aspects into the life-cycle of product development.

2022 Pb-Free and Halogen-Free Product Portfolio
2022 Pb-Free and Halogen-Free Product Portfolio
2022 Pb-Free and Halogen-Free Product Portfolio
10%

10%
10%

RoHS-Compliant with
RoHS-Compliant
withExemptions
Exemptions

90%

Pb-Free and Halogen-Free

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

1

Pb-Free
Pb-FreeandandHalogen-Free
Halogen-Free

90%
90%

Not Pb-Free and Halogen-Free

NotPb-Free
Pb-FreeandandHalogen-Free
Halogen-Free
Not
177

ENVIRONMENTAL PRODUCT COMPLIANCE
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

EU REACH PRODUCTS

NXP products do not contain EU REACH SVHCs except where noted in the appendix of our
EU REACH Statement, which lists the materials in our products that may contain substances inexcess of 0.1% by weight.
Together with our suppliers, we identified seven SVHCs in excess of 0.1% by weight that may
be contained in some of the materials that are used in manufacturing. It was determined thatthe 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 21% of our
product materials2. 2022 REACH SVHCs in Product Portfolio

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 not contain cadmium, mercury, or hexavalent chromium above the allowable limits
per homogeneous level. NXP’s ELV-Compliant products that contain Pb meet the criteria
per exemption.

2022 REACH SVHCs in Product Portfolio
2022 REACH SVHCs in Product Portfolio
21%
21%
21%

ESG
OUR TEAM MEMBERSENVIRONMENT79%

SUPPLIER ENGAGEMENT
Does Not Contain SVHC > 0.1%

79%
Contains SVHC > 0.1%
79%

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

Does
DoesNot
NotContain
ContainSVHCSVHC > 0.1%

Environmental Product ComplianceContainsSVHC
SVHC>>0.1%
0.1%
Contains

Does
Contains
SVHC
SVHC>> 0.1%>> 0.1%DoesNot
NotContain
ContainContains
SVHC
SVHC
0.1%

Responsible Mineral Sourcing

WEEE-RELEVANT SUBSTANCESAPPENDICES

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

2

Lead in glass/ceramic and BPA in substrate cores
178

RESPONSIBLE MINERAL SOURCINGINTRODUCTION

Responsible Mineral Sourcing Goal

100% Certified Conflict-Free for Tungsten, Tantalum, Tin, and Gold
(3TG) Smelters

2022 ESG HIGHLIGHTSOUR BUSINESSRESPONSIBLE MINERAL SOURCING PERFORMANCEECONOMY
GOVERNANCE

99%

ESG

Certified
Conflict-Free 3TG
Smelters3

OUR TEAM MEMBERS

Cobalt Smelter
Declarations

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP
Environmental Product Compliance
Responsible Mineral Sourcing

APPENDICES

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 each product we design andproduce. It is a priority that our products do not contain minerals derived from sources that may
originate in Conflict-Affected or High-Risk Areas (CAHRAs).
The four minerals commonly referred to as “conflict minerals” are tin, tungsten, tantalum, andgold (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 smeltersthat source the minerals we purchase. We then validate supplier information against the listof “conflict-free” smelters, as designated by the Responsible Minerals Assurance Process(RMAP). We encourage our suppliers to direct their smelters to participate in the RMAP. We
monitor information from the Responsible Minerals Initiative (RMI), which records changes insmelter status, and identifies those smelters who refuse to participate in audits, so we can takeappropriate action.

3

 his data point is reported annually, but primarily reflects 2021 calendar-year data to align with our Conflict Minerals Specialized
T
Disclosure Form (Form SD) and Conflict Minerals Reporting Template (CMRT) filing.

Since 2017, the systems and processes we have put in place have certified
our supply-chain status as Conflict-Free4. 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 the smelter or will remove
them from our supply chain. We are also looking into expanding our awareness and education
within the Global Procurement organization.
By working collaboratively with other stakeholders, we aim to create better social and economic
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 Cooperation and Development (OECD) Due Diligence
Guidance for Responsible Supply Chains of Minerals from CAHRAs.
NXP continues to monitor global efforts to address and incorporate other minerals, including
voluntary information collection and reporting processes. Our ECO-Products processes andEnvironment, Health, and Safety (EHS) Management database support our efforts to collect
100% substance information for all of our products. The database allows us to track new minerals
against our portfolio of products.
NXP has chaired the World Semiconductor Council’s conflict-mineral teams since 2013 and has
been a member of RMI since 2014.
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.
To learn more about NXP’s Responsible Mineral Sourcing Policy and to access reports that
include our Conflict Minerals Reporting Template (CMRT), our Cobalt Reporting Template (CRT),
and our Conflict Minerals Specialized Disclosure Form (Form SD), please visit our Responsible
Minerals Sourcing website.

4 er our Securities and Exchange Commission (SEC) filing of May 2022, 234 of the 237 smelters and refiners identified were certified
P(“Conformant”). At the time, three tin smelters were participating in the RMI RMAP program to become compliant (“Active”). Since thefiling, these Active facilities have been removed from the NXP supply chain.
179

APPENDICESGETTING STRAIGHT TO THE DETAILS180

APPENDIX A – ESG PERFORMANCE
NXP's ESG Performance1

Unit

2019

2020

2021

2022

Mainland China and Hong Kong

$ Millions USD

3,147

3,324

4,180

4,700

APAC (excluding Mainland China and Hong Kong)$ Millions USD

2,894

2,773

3,471

4,165

EMEA (Europe, the Middle East, and Africa)$ Millions USD

1,760

1,538

2,036

2,582

Americas$ Millions USD

1,076

977

1,376

1,758

Total Revenue$ Millions USD

8,877

8,612

11,063

13,205

Automotive$ Millions USD

4,212

3,825

5,493

6,879

Industrial and IoT$ Millions USD

1,599

1,836

2,410

2,713

Mobile$ Millions USD

1,191

1,248

1,412

1,607

Communications Infrastructure and Other$ Millions USD

1,875

1,703

1,748

2,006

$ Millions USD

8,877

8,612

11,063

13,205INTRODUCTION

Revenue
2022 ESG HIGHLIGHTS

Revenue by Country

OUR BUSINESSECONOMY
GOVERNANCE
ESG

Revenue by End Market (Unaudited)

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT

Total Revenue

PRODUCT STEWARDSHIPAPPENDICES

Environment2

ESG Performance

Overview

GRI Index
TCFD Index

Percentage of ISO 14001-Certified Manufacturing
Sites

%

100%

100%

100%

100%

UNGC

Number of ISO 14001-Certified Manufacturing Sites

#

9

9

9

9

Scope 1 Chemical List

Number of Spills

#

0

0

0

0

Top 100 Supplier List

Environmental Fines

#

0

0

0

13

SASB Index

Sustainability Policy

Acronyms and Abbreviations

The sum of percentages may not add up to 100% due to rounding.
NXP has updated some environmental data from previous reporting periods. Where the updated data exceeds a 5% change, we have included an explanation in the related section.
3
We take Notices of Violations (NOVs) seriously. We work quickly to identify corrective actions and take steps to minimize the chance of reoccurrence. In 2022, we received two NOVs,
both relating to minor deficiencies. One resulted in a pending conditional fine, due to an inability to close a storm drain in case of an incident.
1
2

181

APPENDIX A – ESG PERFORMANCE
NXP's ESG Performance

Unit

2019

2020

2021

2022

Energy-Efficiency Policy

Yes/No

Yes

Yes

Yes

Yes

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

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

1,134,481

982,123

1,175,998

1,164,959

tCO2e/m²

17.6

17.8

17.5

15.9

Perfluorinated Compounds (PFCs)

%

25%

22%

29%

34%

Heat Transfer Fluids (HTFs)

%

10%

8%

9%

5%

Fossil Fuel (Natural Gas and Diesel)

%

4%

4%

4%

4%

UNGC

N2O

%

1%

1%

1%

1%

Sustainability Policy

Electricity (Manufacturing)

%

56%

60%

54%

51%

Electricity (Non-Manufacturing)

%

2%

2%

2%

2%

Product Transport

%

2%

2%

2%

2%

Business Travel

%

1%

—%

—%

1%

INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENTNXP Carbon Footprint
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Total NXP Scope 1 & 2 Emissions
Total NXP Scope 1 & 2 Emissions Normalized
Carbon-Footprint Breakdown

APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

182

APPENDIX A – ESG PERFORMANCE
NXP's ESG Performance

Unit

2019

2020

2021

2022

PFCs4

tCO2e

288,566

217,326

346,299

400,261

HTFs

tCO2e

113,810

82,100104,51062,499Fossil Fuels

tCO2e41,862

41,81944,22946,068N2O

tCO2e

13,592

14,49815,18815,956

Other Scope 1 Emissions

tCO2e

688

720

777

1,102

tCO2e

458,518

356,462

511,004

525,886

Total ManufacturingtCO2e654,294

604,013642,640

613,620

Total Non-ManufacturingtCO2e21,66921,64822,35425,453tCO2e675,963625,661

664,994

639,073

Product Transport

tCO2e

23,682

24,577

20,153

20,555GRI Index

Business TraveltCO2e

13,008

1,258

1,288

9,098

SASB Index

Total Scope 3 Emissions

tCO2e

36,69025,83521,441

29,653INTRODUCTION
2022 ESG HIGHLIGHTSSCOPE 1 Emissions

OUR BUSINESSECONOMY
GOVERNANCE
ESG

Total Scope 1 Emissions

OUR TEAM MEMBERSSCOPE 2 Emissions
ENVIRONMENT
SUPPLIER ENGAGEMENT

Total Scope 2 Market-Based Emissions

PRODUCT STEWARDSHIPSCOPE 3 Emissions
APPENDICESESG Performance

TCFD Index
UNGC
Sustainability Policy

EnergyScope 1 Chemical List
Top 100 Supplier List

Total Manufacturing Electricity Consumption

kWh1,489,284,039

1,484,305,963

1,560,436,353

1,648,387,555

Acronyms and Abbreviations

Total Non-Manufacturing Electricity Consumption

kWh51,100,760

49,951,895

49,975,324

53,643,676

We have updated our calculation of PFC emissions and, by extension, our Scope 1 emissions totals. We use the IPCC 2006 methodology for data leading
up to and including 2020, and the IPCC 2019 methodology for 2021 and all the years following.

4

183

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

kWh/cm²

2.4

2.8

2.4

2.3

%

24%

32%

31%

35%

Total Water Consumption

m³

10,732,132

10,619,711

11,639,498

12,622,808

Total Wastewater Discharge

m³

Total Normalized Electricity Consumption (Manufacturing and Non-Manufacturing)2022 ESG HIGHLIGHTS

Total Renewable Electricity Consumption

OUR BUSINESSWater
ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

8,753,231

liters/cm²

16.6

19.3

17.3

17.2

Recycled Water

%

41%

49%

48%

48%

Purchased Water

m³

10,061,838

9,927,988

10,901,858

11,816,162

Extracted Water

m³

670,294

691,723

737,640

806,646

Total Regular Ongoing Waste

kg

19,503,067

16,503,773

19,415,128

23,005,443

Total One-Time Waste

kg

506,020

160,124

165,352

163,942

Total Waste

kg

20,009,087

16,663,897

19,580,480

23,169,385

Total Hazardous Waste

kg

2,786,255

3,084,046

3,330,375

2,974,599

Total Non-Hazardous Waste

kg

2,580,140

2,292,142

2,720,830

2,175,716

Recycled Waste

%

76%

71%

76%

83%

Waste Sent to Landfill

%

19%

21%

18%

14%

Waste Sent to Incineration

%

4%

5%

7%

6%

E-Scrap Reclaim

kg

642,995

606,138

790,784

683,553

Total Normalized Water Consumption

ENVIRONMENT

Waste
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

184

APPENDIX A – ESG PERFORMANCE
NXP's ESG Performance

INTRODUCTION

Unit

2019

2020

2021

2022

Environmental Stewardship Product Portfolio
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

RoHS-Compliant without Exemptions

%

93%

92%

93%

RoHS-Compliant with Exemptions

%

7%

6%

5%

REACH-Compliant

%

93%

82%

79%

Halogen-Free

%

94%

94%

96%

Pb-Free and Halogen-Free

%

84%

89%

90%

Conflict-Free Minerals

%

100%

100%

100%

99%

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

ESG
OUR TEAM MEMBERS

SocialOverview

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance

Percentage of ISO 45001-Certified Manufacturing
Sites

%

100%

100%

100%

100%

GRI Index

Number of ISO 45001-Certified Manufacturing Sites

#

9

9

9

9

SASB Index
TCFD Index

Human Rights Policy5

Yes/No

Yes

Yes

Yes

Yes

UNGC

Policy Against Child Labor

Yes/No

Yes

Yes

Yes

Yes

Scope 1 Chemical List

UN Global Compact Signatory

Yes/No

Yes

Yes

Yes

Yes

Top 100 Supplier List

Responsible Business Alliance (RBA) Full Member

Yes/No

Yes

Yes

Yes

Yes

Sustainability Policy

Acronyms and Abbreviations

We published our first, stand-alone Human Rights Policy in 2022. Previously, human rights clauses were embedded within existing policies and commitments.

5

185

APPENDIX A – ESG PERFORMANCE
NXP's ESG Performance

Unit

2019

2020

2021

2022

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

Years

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but insome cases more
frequently subject
to applicable law

At least every
2 years, but
in some cases
more frequently
subject toapplicable law

HC34,81733,48036,22339,731

HC

27,75927,73029,86133,037

%

80%

83%

82%

83%

HC

1,651

1,454

1,487

1,492

%

5%

4%

4%

4%

HC

5,407

4,296

4,875

5,202

%

16%

13%

13%

13%

Americas

%

20%

19%

18%

18%

APAC

%

59%

60%

61%

61%

Scope 1 Chemical List

EMEA

%

21%

21%

20%

21%

Top 100 Supplier List

Americas

%

—%

—%

—%

—%

APAC

%

91%

99%

100%

100%

EMEA

%

9%

0.7%

—%

—%

INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Frequency of Team-Member Sexual-Harassment Training

ESG
OUR TEAM MEMBERS

Workforce Footprint
Extended Workforce - Total

ENVIRONMENT

Employees
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Joint Venture

Contingent Labor

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy

Employees

Acronyms and Abbreviations

Joint Venture186

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTS

NXP's ESG Performance

Unit

2019

2020

2021

2022

Americas

%

20%

20%

18%

15%

APAC

%

54%

53%

59%

60%

EMEA

%

26%

27%

23%

25%

External Temp

%

24%

33%

31%

30%

Contractor

%

76%

67%

69%

70%

Americas

%

27%

24%

22%

21%

APAC

%

42%

44%

46%

46%

EMEA

%

31%

32%

32%

32%

Americas

%

7%

12%

12%

13%

APAC

%

90%

84%

84%

83%

EMEA

%

3%

4%

4%

4%

Individual Contributor (DL)

%

36%

38%

41%

39%

Individual Contributor (IDL)

%

53%

51%

50%

52%

People Manager (IDL)

%

11%

10%

9%

9%

Executive (IDL)

%

0.6%

0.5%

0.5%

0.5%

Contingent LaborOUR BUSINESSECONOMY
GOVERNANCE

Contingent Labor by TypeESGOUR TEAM MEMBERSENVIRONMENT

Employee Type by Region

Indirect Labor (IDL)

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Direct Labor (DL)APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List

Employee by Role

Acronyms and Abbreviations

187

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

Americas

%

25%

23%

21%

19%

APAC

%

35%

36%

39%

41%

EMEA

%

40%

41%

40%

40%

Percent R&D of Total NXP Footprint

%

32%

32%

31%

34%

Full-Time (FT)

%

99.4%

99.3%

99.5%

99.5%

Part-Time (PT)

%

0.6%

0.7%

0.5%

0.5%

Women

%

37%

36%

37%

37%

Men

%

63%

64%

63%

63%

Women

%

21%

21%

19%

18%

Men

%

79%

79%

81%

82%

Women

%

37%

36%

37%

37%

Men

%

63%

64%

63%

63%

Americas

%

12%

11%

11%

12%

APAC

%

79%

79%

80%

78%

EMEA

%

9%

9%

9%

11%

R&D Employee by Region
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Employment TypeESGOUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTFT Employment by Gender

PT Employment by Gender

PRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index

Employee by Gender

TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List

Employee Gender by Region

Top 100 Supplier List
Acronyms and Abbreviations

Women

188

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTS

NXP's ESG Performance

Unit

2019

2020

2021

2022

Americas

%

25%

24%

22%

22%

APAC

%

48%

48%

51%

51%

EMEA

%

28%

28%

27%

27%

Women

%

14%

13%

13%

16%

Men

%

86%

87%

87%

84%

Women

%

16%

16%

16%

18%

Men

%

84%

84%

84%

82%

Women

%

39%

38%

39%

39%

Men

%

61%

62%

61%

61%

Women

%

22%

23%

24%

25%

Men

%

78%

77%

76%

75%

Women

%

62%

58%

56%

55%

Men

%

38%

42%

44%

45%

Women

%

16%

16%

17%

19%

Men

%

84%

84%

83%

81%

White (Not Hispanic / Latino)

%

52%

52%

51%

49%

Asian (Not Hispanic / Latino)

%

21%

21%

20%

22%

Men

OUR BUSINESSECONOMY
GOVERNANCE
ESG

Employee Gender by Role
Executive

People Manager

OUR TEAM MEMBERS

Individual Contributor
ENVIRONMENT
SUPPLIER ENGAGEMENTIDL
PRODUCT STEWARDSHIPAPPENDICESDLESG Performance
GRI Index
SASB Index
TCFD Index

R&D

UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

United States Race and Ethnicity

189

APPENDIX A – ESG PERFORMANCE
Unit

2019

2020

2021

2022

Hispanic / Latino

%

13%

14%

15%

16%

Black or African American (Not Hispanic / Latino)

%

4%

4%

5%

6%

Native American / Alaska Native (Not Hispanic / Latino)

%

0.4%

0.5%

0.6%

0.6%

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

%

0.2%

0.2%

0.2%

0.2%

Two or More Races (Not Hispanic / Latino)

%

0.5%

0.6%

0.9%

1%

Undeclared

%

8%

8%

7%

6%

White (Not Hispanic / Latino)

%

68%

68%

63%

64%

Asian (Not Hispanic / Latino)

%

9%

9%

10%

13%

ENVIRONMENT

Hispanic / Latino

%

6%

6%

6%

7%

SUPPLIER ENGAGEMENT

Black or African American (Not
Hispanic / Latino)

%

5%

5%

6%

7%

Native American / Alaska Native(Not Hispanic / Latino)

%

—%

—%

—%

—%

Native Hawaiian / Other PacificIslander (Not Hispanic / Latino)

%

—%

—%

—%

—%

Two or More Races (Not Hispanic /Latino)

%

—%

—%

1%

1%

Undeclared

%

13%

12%

14%

7%

INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

NXP's ESG Performance

United States Employee Race and Ethnicity by RoleOUR TEAM MEMBERS

Executive
PRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

190

APPENDIX A – ESG PERFORMANCE
Unit

2019

2020

2021

2022

White (Not Hispanic / Latino)

%

59%

60%

59%

57%

Asian (Not Hispanic / Latino)

%

19%

19%

18%

20%

Hispanic / Latino

%

8%

9%

9%

11%

Black or African American (Not
Hispanic / Latino)

%

3%

3%

3%

3%

Native American / Alaska Native(Not Hispanic / Latino)

%

0.3%

0.3%

0.2%

0.3%

Native Hawaiian / Other PacificIslander (Not Hispanic / Latino)

%

—%

—%

—%

0.1%

ESG

Two or More Races (Not Hispanic /Latino)

%

0.1%

0.2%

0.5%

0.7%

OUR TEAM MEMBERS

Undeclared

%

10%

9%

9%

8%

White (Not Hispanic / Latino)

%

53%

51%

51%

49%

Asian (Not Hispanic / Latino)

%

23%

27%

27%

30%

Hispanic / Latino

%

11%

9%

10%

10%

Black or African American (Not
Hispanic / Latino)

%

3%

2%

3%

3%

Native American / Alaska Native(Not Hispanic / Latino)

%

0.4%

0.3%

0.4%

0.2%

Native Hawaiian / Other PacificIslander (Not Hispanic / Latino)

%

0.4%

0.1%

0.1%

0.1%

Two or More Races (Not Hispanic /Latino)

%

0.6%

0.6%

0.9%

1%

Undeclared

%

9%

9%

9%

7%

INTRODUCTION

NXP's ESG Performance

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

People Manager

GOVERNANCEENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List

Individual Contributor (IDL)

Top 100 Supplier List
Acronyms and Abbreviations

191

APPENDIX A – ESG PERFORMANCE
Unit

2019

2020

2021

2022

White (Not Hispanic / Latino)

%

38%

50%

47%

44%

Asian (Not Hispanic / Latino)

%

13%

10%

10%

9%

Hispanic / Latino

%

32%

28%

27%

29%

Black or African American (Not
Hispanic / Latino)

%

12%

8%

10%

12%

Native American / Alaska Native(Not Hispanic / Latino)

%

0.6%

0.9%

1%

2%

Native Hawaiian / Other PacificIslander (Not Hispanic / Latino)

%

0.9%

0.6%

0.6%

0.6%

ESG

Two or More Races (Not Hispanic /Latino)

%

0.9%

0.8%

1%

2%

OUR TEAM MEMBERS

Undeclared

%

3%

3%

3%

3%

<31 years old

%

15%

19%

22%

25%

31–50 years old

%

61%

59%

57%

55%

51+ years old

%

23%

22%

21%

20%

Executive

%

—%

—%

—%

—%

People Manager

%

0.1%

0.1%

0.1%

0.1%

Individual Contributor

%

15%

19%

22%

24%

Executive

%

0.2%

0.2%

0.2%

0.1%

People Manager

%

7%

6%

6%

6%

Individual Contributor

%

54%

53%

51%

50%

INTRODUCTION

NXP's ESG Performance

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY

Individual Contributor (DL)GOVERNANCEENVIRONMENT

Employee by Age
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance

Employee Age by RoleGRI Index
SASB Index
TCFD Index<31 years old

UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

31–50 years old

192

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTS

NXP's ESG Performance

51+ years old

OUR BUSINESSECONOMY
GOVERNANCE

2019

2020

2021

2022

Executive

%

0.4%

0.4%

0.3%

0.3%

People Manager

%

4%

3%

3%

3%

Individual Contributor

%

19%

18%

17%

17%

%

7.8%

6.9%

12.1%

11.7%

Americas (IDL and DL)

%

5.8%

5.6%

9.1%

10.4%

APAC (IDL and DL)

%

9.7%

8.9%

15.7%

14.7%

EMEA (IDL and DL)

%

4.2%

2.5%

4.3%

3.8%

%

5.9%

5.1%

7.9%

7.5%

Americas (IDL)

%

5.6%

6.2%

8.6%

9.4%

APAC (IDL)

%

7.3%

6.1%

9.9%

9.0%

EMEA (IDL)

%

4.3%

2.7%

4.5%

3.9%

%

11.0%

9.8%

18.4%

18.1%

Americas (DL)

%

6.9%

3.6%

10.5%

13.1%

APAC (DL)

%

11.7%

11.2%

20.3%

19.5%

EMEA (DL)

%

1.9%

0.7%

2.1%

2.9%

Employee Attrition
Voluntary Turnover
Global Employee Voluntary Turnover

ESG
OUR TEAM MEMBERSENVIRONMENT

Unit

Global IDL Employee Voluntary Turnover

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Global DL Employee Voluntary Turnover
APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

193

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

2022 ESG HIGHLIGHTSOUR BUSINESSIDL Voluntary Turnover

ECONOMY
GOVERNANCE
ESG

Unit

2019

2020

2021

2022

Women

%

22%

21%

23%

24%

Men

%

78%

79%

77%

77%

<31 years old

%

24%

22%

28%

25%

31–50 years old

%

59%

60%

55%

56%

51+ years old

%

17%

18%

16%

19%

Women

%

59%

63%

55%

60%

Men

%

41%

37%

45%

40%

<31 years old

%

52%

45%

53%

58%

31–50 years old

%

37%

44%

38%

35%

51+ years old

%

11%

11%

9%

8%

%

3.9%

3.2%

3.8%

1.5%

Americas (IDL and DL)

%

5.8%

5.4%

4.6%

1.4%

APAC (IDL and DL)

%

3.5%

4.1%

4.1%

1.2%

EMEA (IDL and DL)

%

3.2%

5.4%

2.2%

2.8%

OUR TEAM MEMBERSDL Voluntary Turnover
ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Involuntary Turnover
APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC

Global Employee Involuntary Turnover

Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

194

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

Americas

%

21%

19%

19%

19%

APAC

%

47%

56%

56%

47%

EMEA

%

31%

25%

25%

34%

Americas

%

2%

2%

11%

16%

APAC

%

97%

97%

89%

83%

EMEA

%

0.5%

0.1%

0.6%

2%

Women

%

23%

23%

27%

29%

Men

%

77%

77%

73%

71%

Women

%

31%

32%

30%

35%

Men

%

69%

68%

70%

65%

Women

%

66%

56%

53%

56%

Men

%

34%

44%

47%

44%

White (Not Hispanic / Latino)

%

22%

47%

42%

32%

Asian (Not Hispanic / Latino)

%

37%

32%

18%

26%

Hispanic / Latino

%

6%

10%

17%

18%

Black or African American (Not Hispanic / Latino)

%

2%

2%

11%

9%

Native American / Alaska Native (Not Hispanic / Latino)

%

—%

0.4%

1%

1%

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

%

—%

—%

0.4%

0.3%

Employee Hiring
2022 ESG HIGHLIGHTSOUR BUSINESSIDLECONOMY
GOVERNANCEDL

ESG
OUR TEAM MEMBERS

Employee Hiring by TypeIDLENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPIDL New College GraduateDL

APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

United States Hiring by Race and Ethnicity

195

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTS

NXP's ESG Performance

Unit

2019

2020

2021

2022

Two or More Races (Not Hispanic / Latino)

%

0.8%

0.4%

3%

3%

Undeclared

%

32%

9%

7%

12%

White (Not Hispanic / Latino)

%

35%

29%

33%

35%

Asian (Not Hispanic / Latino)

%

39%

43%

44%

39%

Hispanic / Latino

%

9%

11%

10%

13%

Black or African American (Not Hispanic / Latino)

%

3%

2%

4%

5%

Native American / Alaska Native (Not Hispanic / Latino)

%

—%

—%

—%

0.6%

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

%

—%

—%

—%

—%

Two or More Races (Not Hispanic / Latino)

%

4%

2%

7%

4%

Undeclared

%

10%

14%

3%

4%

IDL

%

40%

44%

49%

48%

DL

%

66%

61%

66%

68%

IDL

%

50%

45%

44%

45%

DL

%

34%

39%

32%

29%

IDL

%

10%

11%

6%

7%

DL

%

0.4%

0.7%

2%

3%

%

15%

13%

11%

14%

OUR BUSINESS

United States New College Gradate Hiring by Race and Ethnicity
ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Hiring by Age<31 years old

ESG Performance
GRI Index
SASB Index

31–50 years old

TCFD Index
UNGC
Sustainability Policy

51+ years old

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

R&D Hiring by Region
Americas196

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTS

NXP's ESG Performance

Unit

2019

2020

2021

2022

APAC

%

42%

38%

61%

47%

EMEA

%

43%

49%

29%

39%

University

%

45%

35%

24%

23%

Global NXP Intern Conversion Rate

%

30%

30%

40%

39%

%

7%

7%

8%

11%

IDL

%

8%

8%

11%

13%

DL

%

5%

4%

4%

7%

Hours

89,591

168,229

Global Online Courses Completed by Executives

Courses123

110

Global Online Courses Completed by People Managers

Courses

2,197

2,551

Global Online Courses Completed by Individual Contributor (IDL and DL)

Courses

6,532

6,836

Global Online Learning Courses Completed by Employees (Total Courses per Employee)

Courses

8,852

9,497

IDL

Hours

7.0

8.0

DL

Hours

0.2

0.6

Women

Hours

2.2

4.1

Men

Hours

3.5

5.7

OUR BUSINESSIDL Talent Hiring
ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

Global Employee Promotion Rate

ENVIRONMENT

Training
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index

Total NXP Online Training Hours

Total Online Training (Average Hours)

UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List

Online Training by Gender

Acronyms and Abbreviations

197

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

Occupational Illness and Injuries

#

35

23

25

36

Total - Injury Count NXP Contractors

#

8

7

12

Health and Safety2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

Severity Rate

Rate

4.64

2.26

1.47

2.86

Total Case Incident Rate (TCIR)

Rate

0.12

0.08

0.08

0.10

#

0

0

0

0

Yes/No

Yes

Yes

Yes

Yes

#

17

4

6

14

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

HC

9

10

12

10

Unitary/
Two-Tier

Unitary

Unitary

Unitary

Unitary

HC

0

0

0

0

Fatalities - Employees

Supply Chain
Supply-Chain Management - Social Responsibility
Total Number of Audits

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index

Governance
Overview

TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Board Structure
Size of the Board
Unitary or Two-Tier Board System
Number of Employee Representatives on Board

198

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS

NXP's ESG Performance

Unit

2019

2020

2021

2022

Classified Board System

Yes/No

No

No

No

No

Number of Directors with Financial, Audit, and Accounting Expertise

HC

8

8

9

6

Number of Corporate Executive Officers on the Board

HC

1

1

1

1

Percentage of Corporate Executive Officers on the Board

%

11%

10%

8%

10%

Number of Non-Executive Directors on the Board

HC

8

9

11

9

Percentage of Non-Executive Directors on the Board

%

89%

90%

92%

90%

Number Independent Directors

HC

8

9

11

9

Percentage of Independent Directors

%

89%

90%

92%

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

Number of Women on Board

HC

1

3

4

4

Percentage of Women on Board

%

11%

30%

33%

40%

Female CEO or Equivalent

Yes/No

No

No

No

No

Female Chairperson or Equivalent

Yes/No

No

No

No

No

HC

9

10

12

10

Yes/No

No

Yes

Yes

Yes

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPBoard Independence

APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Board and Executive Diversity

Number of Directors with Executive Leadership
CEO or Equivalent Appointed from Within

199

APPENDIX A – ESG PERFORMANCEINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

NXP's ESG Performance

Unit

2019

2020

2021

2022

Number of Female Executives

HC

0

1

1

1

Percentage of Female Executives

%

17%

17%

17%

17%

Age of the Youngest Director

Age

58

50

51

51

Age of the Oldest Director

Age

76

79

79

78

Board of Directors Age Range

Age

18

29

28

27

Board Average Age

Age

67

65

65

65

Yes/No

No

No

No

No

Average Board Tenure

Years

7.2

6.3

5.0

5.0

Date Executive Director Appointed to the Board of Directors

Date

January 2009

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

Number of Directors Attending Less Than 75% of Meetings

HC

1

0

0

0

Size of Audit Committee

HC

3

3

3

4

Number of Independent Directors on Audit Committee

HC

3

3

3

4

Percentage of Independent Directors on Audit Committee

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

HC

3

3

3

4

#

9

9

10

13

Board Age Limit

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPBoard Meetings

APPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Audit Committee

Independent Audit Committee Chairperson
Number of Non-Executive Directors on Audit Committee
Audit Committee Meetings

200

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

%

>75%

>75%

>75%

>75%

Size of Compensation Committee

HC

4

4

5

4

Number of Independent Directors on Compensation Committee

HC

4

4

5

4

Percentage of Independent Directors on Compensation Committee

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

HC

4

4

5

4

Number of Compensation Committee Meetings

#

6

8

7

6

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

Audit Committee Meeting Attendance
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

Compensation Committee

Independent Compensation Committee Chairperson
Number of Non-Executive Directors on Compensation Committee

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List

Nominating, Governance, and Sustainability Committee
Size of Nomination Committee

HC

4

4

5

3

Number of Independent Directors on Nomination Committee

HC

4

4

5

3

Percentage of Independent Directors on Nomination Committee

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

HC

4

4

4

3

Number of Nomination-Committee Meetings

#

2

4

4

4

Nomination-Committee-Meeting Attendance

%

>75%

>75%

>75%

>75%

Independent Nomination Committee Chairperson
Number of Non-Executive Directors on Nomination Committee

Acronyms and Abbreviations

201

APPENDIX A – ESG PERFORMANCEINTRODUCTION

NXP's ESG Performance

Unit

2019

2020

2021

2022

Environmental, Social, and Governance (ESG) Governance2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYNon-Executive Director with Responsibility for ESG

Yes/NoNo

No

No

Executive Director with Responsibility for ESG

Yes/No

Yes

Yes

Yes

Executive Compensation Linked to ESG

Yes/No

No

No

Yes

Board Compensation Linked to ESG

Yes/NoNo

No

No

GOVERNANCE

Shareholder Rights
ESG
OUR TEAM MEMBERSENVIRONMENT

%

10%

10%

10%

10%

Poison Pill

Yes/No

No

No

No

No

Blank-Check-Preferred Authorized

Yes/NoNo

No

No

Dual-Class Unequal Voting Rights – Common Shares

Yes/NoNo

No

No

Ownership Required for Special MeetingNo

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

202

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSStatement of Use

NXP Semiconductors has reported the information cited in this GRI content index for the period January 1,
2022 to December 31, 2022 with reference to the GRI Standards.

GRI 1 Used

GRI 1: Foundation 2021

GRI Standard

Disclosure

Location

2-1 Organizational details

a. Our legal name is NXP Semiconductors N.V. and our commercial name is “NXP” or“NXP Semiconductors” (NASDA Q: NXPI)
b. We were incorporated in the Netherlands in 2006 as a Dutch public company withlimited liability (naamloze vennootschap)c. Our principal executive office is at High Tech Campus 60, 5656 AG Eindhoven, theNetherlandsd. Our Business: Worldwide Manufacturing Locations

2-2 Entities included in the organization’s sustainability
reportinga. Introduction: About This Reportb. There is no difference between the entities included in financial reporting andsustainability reporting. Financial reporting is available on our Investor Relations website.

2-3 Reporting period, frequency and contact point

a. The reporting period covers calendar year 2022, unless otherwise stated. NXP
publishes Corporate Sustainability Reports on an annual basis.
b. Our reporting period aligns with our annual financial reporting. Financial reporting isavailable on our Investor Relations website.
c. Publication date: March 31, 2023 d. Contact point for questions about this Report orreported information: CSR@nxp.com
Introduction: About This Report

2-4 Restatements of information

NXP has updated some environmental data from previous reporting periods. Where theupdated data exceeds a 5% change, we have included an explanation in the related section.

2-5 External assurance

The 2022 Corporate Sustainability Report is not assured through an assurance provider.
We perform extensive internal due diligence and data validation to ensure the accuracyof the information and data presented in this Report.

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESGRI 2: General Disclosures 2021

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

2-6 Activities, value chain and other business relationships a. Semiconductors
b. Our BusinessEconomy: Product Solutions Contributing to Sustainability
Supplier Engagement
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 Systems on Silicon Manufacturing Company(SSMC).
d. No significant changes.
2-7 Employees

Our Team Members: Team-Member Demographics

203

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTIONGRI Standard

Disclosure

Location

2-8 Workers who are not employees

We currently report the headcount for contingent labor. Contingent labor includes
temp-agency workers and contractors. 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 onbehalf of NXP through a scope of work. In 2022, our external temp and contractor
workforce was 5,202.

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 governancebody

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.

2-12 Role of the highest governance body in overseeing
the management of impacts

Environmental, Social, and Governance
Our Business: Stakeholder Engagement
Governance: Board of Directors
Appendix D: TCFD Index

2-13 Delegation of responsibility for managing impacts

Environmental, Social, and Governance
Our Business: Stakeholder Engagement
Governance: Board of Directors
Appendix D: TCFD Index

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTGRI 2: General Disclosures 2021

PRODUCT STEWARDSHIP

2-14 Role of the highest governance body in sustainability Our Corporate Sustainability Report is reviewed and approved by the Nominating,reportingGovernance, and Sustainability Committee of the Board of Directors.

APPENDICES

2-15 Conflicts of interest

Other than the compensation items described in our Proxy Statement, no decisions
to enter into material transactions in which there were conflicts of interest withdirectors occurred during the financial year 2022. See our Proxy Statement, “Certain
Relationships and Related Transactions” section for additional details. This document isavailable on our Investor Relations website.

2-16 Communication of critical concerns

Governance: Ethics

2-17 Collective knowledge of the highest governancebody

NXP has had third-party consultants with environmental, social, and governance (ESG)and sustainability expertise present to the Board of Directors to help the Board makebusiness decisions that best align 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” web page.

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

204

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEX
Disclosure

Location

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. Environmental, Social, and Governance: Our ESG 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 Governance” web page.

2-21 Annual total compensation ratio

See our Proxy Statement, “CEO Pay Ratio Disclosure” section. This document isavailable on our Investor Relations website.

2-22 Statement on sustainable development strategy

Introduction: A Letter From Our CEO

2-23 Policy commitments

Governance: Ethics Supplier Engagement
Our Team Members: Human Rights
See our Code of Conduct
See our Human Rights Policy
Appendix F: Sustainability Policy

2-24 Embedding policy commitments

Governance: Ethics
Supplier Engagement
Our Team Members: Human Rights

2-25 Processes to remediate negative impacts

Governance: Ethics
Supplier Engagement
Our Team Members: Human Rights

2-26 Mechanisms for seeking advice and raising concerns

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 to minimize the chance of reoccurrence. In 2022, we received
two NOVs, both relating to minor deficiencies. One resulted in a pending conditionalfine, due to an inability to close a storm drain in case of an incident. The fine amountwas 22,000 Euros.

TCFD Index

2-28 Membership associations

Our Business: Stakeholder Engagement

UNGC

2-29 Approach to stakeholder engagement

Our Business: Stakeholder Engagement

2-30 Collective bargaining agreements

Employees at any 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 andregions where there are collective-bargaining agreements, we are compliant with all
agreements required by laws and regulations. Approximately 20% of our employees arecovered by collective-bargaining agreements.

INTRODUCTIONGRI Standard

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENTGRI 2: General Disclosures 2021
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index

Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

205

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTIONGRI Standard

2022 ESG HIGHLIGHTSOUR BUSINESSGRI 3: Material Topics 2021

Disclosure

Location

3-1 Process to determine material topics

Introduction: About This Report

3-2 List of material topics

Introduction: About This Report

3-3 Management of material topics

Introduction: About This Report
Governance: Ethics, Cybersecurity
Our Team Members: Human Rights, Health and Safety
Environment
Supplier Engagement

201-1 Direct economic value generated and distributed

See our Form 10-K, “Consolidated Statements of Operations,” “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 andopportunities due to climate change

See our Form 10-K, “Item 1A. Risk Factors” section. This document is available on our
Investor Relations website.
Appendix D: TCFD Index

201-3 Defined benefit plan obligations and otherretirement plans

See our Form 10-K, “Postretirement Benefits” section. This document is available on
our Investor Relations website.
Our Team Members: Providing Competitive and Fair 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 from thelocal community

We do not currently disclose this information. We focus on hiring the best and brightest
individuals from the communities where we operate, for all levels of employment.

203-1 Infrastructure investments and services supported

We do not think this disclosure is applicable to NXP’s operations at this time.

203-2 Significant indirect economic impacts

We do not currently disclose this information.

204-1 Proportion of spending on local suppliers

We do not currently disclose this information.

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 and trainings mitigate these risks.
Governance: Ethics

205-2 Communication and training about anti-corruption
policies and procedures

We define our anti-corruption policies and procedures in our Code of Conduct, andinclude our policies and procedures in team-member training.
Governance: Ethics

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERS

GRI 201: Economic Performance 2016

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESGRI 202: Market Presence 2016

ESG Performance
GRI Index
SASB Index

GRI 203: Indirect Economic Impacts 2016

TCFD Index
UNGC

GRI 204: Procurement Practices 2016

Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

GRI 205: Anti-corruption 2016

206

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSGRI Standard

205-3 Confirmed incidents of corruption and actions taken We track any anti-corruption allegations, conduct thorough reviews, and takeappropriate remedial measures. We consider this confidential information and do notreport it publicly.

GRI 206: Anti-competitive Behavior 2016

206-1 Legal actions for anti-competitive behavior, antitrust, and monopoly practices

We do not currently disclose this information.

207-1 Approach to tax

Economy: Taxation

207-2 Tax governance, control, and risk management

Economy: Taxation

207-3 Stakeholder engagement and management ofconcerns related to tax

Economy: Taxation

207-4 Country-by-country reporting

We do not currently disclose this information.

301-1 Materials used by weight or volume~90% 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 avery 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 thepercentage of NXP products our customers or end users recycle. We provide
information about the substances within our components so customers and end users
can make informed decisions regarding disposal.

302-1 Energy consumption within the organization

Environment: Energy

302-2 Energy consumption outside of the organization

We do not currently disclose this information.

302-3 Energy intensity

Environment: Energy

302-4 Reduction of energy consumption

Environment: Energy

302-5 Reductions in energy requirements of products andservices

Environment: Energy

303-1 Interactions with water as a shared resource

Environment: Water

303-2 Management of water discharge-related impacts

Environment: Water

303-3 Water withdrawal

Environment: Water

303-4 Water discharge

Environment: Water

GRI 207: Tax 2019

ESG
OUR TEAM MEMBERSENVIRONMENTGRI 301: Materials 2016

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index

GRI 302: Energy 2016

SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Location

GRI 205: Anti-corruption 2016

ECONOMY
GOVERNANCE

Disclosure

GRI 303: Water and Effluents 2018

207

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTIONGRI Standard
GRI 303: Water and Effluents 20182022 ESG HIGHLIGHTS

Location303-5 Water consumption

Environment: Water

304-1 Operational sites owned, leased, managed in, or
We do not think this disclosure is applicable to NXP’s operations at this time.
adjacent to, protected areas and areas of high biodiversity
value outside protected areas

OUR BUSINESSECONOMY

Disclosure

GRI 304: Biodiversity 2016

304-2 Significant impacts of activities, products andservices on biodiversity

We do not think this disclosure is applicable to NXP’s operations at this time.

304-3 Habitats protected or restored

We do not think this disclosure is applicable to NXP’s operations at this time.

GOVERNANCE

304-4 IUCN Red List species and national conservation list We do not think this disclosure is applicable to NXP’s operations at this time.
species with habitats in areas affected by operations

ESG

305-1 Direct (Scope 1) GHG emissions

Environment: Emissions

305-2 Energy indirect (Scope 2) GHG emissions

Environment: Emissions

305-3 Other indirect (Scope 3) GHG emissions

Environment: Emissions

305-4 GHG emissions intensity

Environment: Emissions

305-5 Reduction of GHG emissions

Environment: Emissions

305-6 Emissions of ozone-depleting substances (ODS)

Environment: Hazardous Chemicals and Materials
Appendix G: Scope 1 Chemical List of Emissions

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions

Environment: Emissions

306-1 Waste generation and significant waste-related
impacts

Environment: Management, Waste
Product Stewardship

306-2 Management of significant waste-related impacts

Environment: Management, Waste
Product Stewardship
Supplier Engagement306-3 Waste generated

Environment: Waste
Appendix A: ESG Performance

306-4 Waste diverted from disposal

We are updating our data-collection methods for waste and plan to publish thisdisclosure in future Reports.

306-5 Waste directed to disposal

We are updating our data-collection methods for waste and plan to publish thisdisclosure in future Reports.

OUR TEAM MEMBERSENVIRONMENTGRI 305: Emissions 2016

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy

GRI 306: Waste 2020

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

208

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTION
2022 ESG HIGHLIGHTSGRI Standard
GRI 308: Supplier Environmental
Assessment 2016

OUR BUSINESS

Disclosure

Location308-1 New suppliers that were screened using
environmental criteria

Supplier Engagement
Environment: Management308-2 Negative environmental impacts in the supply chain Supplier Engagement
and actions taken
Environment: Management401-1 New employee hires and employee turnover

Our Team Members: Investing in Future Talent, Focusing on Team-Member Retention

401-2 Benefits provided to full-time employees that are
not provided to temporary or part-time employees

Our Team Members: Providing Competitive and Fair Compensation and Benefits

401-3 Parental leave

We provide our employees with parental leave that meets or exceeds local regulatory
requirements, but our offerings vary by location. We do not currently disclose parentalleave data. For more details, please visit www.nxp.com/benefits.

402-1 Minimum notice periods regarding operationalchanges

We do not currently disclose this information.

403-1 Occupational health and safety management
system

Our Team Members: Health and Safety403-2 Hazard identification, risk assessment, and incident
investigation

Our Team Members: Health and Safety403-3 Occupational health services

Our Team Members: Health and Safety

PRODUCT STEWARDSHIP

403-4 Worker participation, consultation, andcommunication on occupational health and safety

Our Team Members: Health and Safety

APPENDICES

403-5 Worker training on occupational health and safety

Our Team Members: Health and Safety403-6 Promotion of worker health

Our Team Members: Health and Safety403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by business
relationships

Our Team Members: Health and Safety

403-8 Workers covered by an occupational health andsafety management system

Our Team Members: Health and Safety

403-9 Work-related injuries

Our Team Members: Health and Safety403-10 Work-related ill health

The main types of employee injuries include slips and falls, machine safety, andergonomics. Each incident is documented and corrective and/or preventative measures
are put in place.

ECONOMYGRI 401: Employment 2016
GOVERNANCE
ESG
OUR TEAM MEMBERS

GRI 402: Labor/Management Relations
2016

ENVIRONMENT
SUPPLIER ENGAGEMENT

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

GRI 403: Occupational Health and Safety
2018

209

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTIONGRI Standard

2022 ESG HIGHLIGHTSGRI 404: Training and Education 2016
OUR BUSINESSECONOMY

Disclosure

Location404-1 Average hours of training per year per employee

Our Team Members: Enabling Talent Development and Growth Opportunities

404-2 Programs for upgrading employee skills andtransition assistance programs

Our Team Members: Enabling Talent Development and Growth Opportunities

404-3 Percentage of employees receiving regularperformance and career development reviews

Our Team Members: Driving Team-Member Engagement

GOVERNANCE

405-1 Diversity of governance bodies and employees
GRI 405: Diversity and Equal Opportunity
405-2 Ratio of basic salary and remuneration of women to
2016
men

ESG

GRI 406: Non-discrimination 2016

Appendix A: ESG Performance
We do not currently disclose this information.

406-1 Incidents of discrimination and corrective actions
taken

We track any discrimination allegations, conduct thorough reviews, and takeappropriate remedial measures. We consider this confidential information and do notreport it publicly.

407-1 Operations and suppliers in which the right tofreedom of association and collective bargaining may be
at risk

Our Team Members: Human Rights
Supplier Engagement: Supply-Chain Management
See our Human Rights Policy
See our Auditable Standards on Social Responsibility, “L&H.7. Freedom of Association
and Collective Bargaining” clause

GRI 408: Child Labor 2016408-1 Operations and suppliers at significant risk forincidents of child labor

Labor and Human Rights Reporting

PRODUCT STEWARDSHIPGRI 409: Forced or Compulsory Labor
2016409-1 Operations and suppliers at significant risk forincidents of forced or compulsory labor

Labor and Human Rights Reporting

APPENDICESGRI 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 of indigenous We do not think this is applicable to NXP’s operations at this time.
peoples

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTGRI 407: Freedom of Association andCollective Bargaining 2016

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy

GRI 413: Local Communities 2016

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

GRI 414: Supplier Social Assessment
2016413-1 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.

414-1 New suppliers that were screened using social
criteria

Supplier Engagement414-2 Negative social impacts in the supply chain andactions taken

Supplier Engagement
210

APPENDIX B – 2022 GLOBAL REPORTING INITIATIVE (GRI) INDEXINTRODUCTIONGRI Standard
GRI 415: Public Policy 20162022 ESG HIGHLIGHTSOUR BUSINESSGRI 416: Customer Health and Safety
2016

ECONOMY
GOVERNANCE

GRI 417: Marketing and Labeling 2016

ESG
OUR TEAM MEMBERS

GRI 418: Customer Privacy 2016

Disclosure

Location

415-1 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.

416-2 Incidents of non-compliance concerning the healthand safety impacts of products and services

We do not think this is applicable to NXP’s operations at this time.

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 has not had a non-compliance with regulations concerning product informationand labeling.

417-3 Incidents of non-compliance concerning marketing
communications

NXP has not had a non-compliance with marketing communications.

418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

We do not currently disclose this information.

ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

211

APPENDIX C – 2022 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEXTopic

INTRODUCTION
2022 ESG HIGHLIGHTS

Greenhouse
Gas Emissions

OUR BUSINESSECONOMY
GOVERNANCE

Accounting Metric(1) Gross global Scope 1 emissions and (2)TC-SC-110a.1 amount of total emissions from perfluorinatedcompounds
Discussion of long-term and short-term
strategy or plan to manage Scope 1 emissions,
TC-SC-110a.2
emissions reduction targets, and an analysis ofperformance against those targets

Unit of Measure(1) 525,886
Metric tons (t)CO2-e (2) 400,261

n/a(1) 6,127,312 total electricity(2) 100%(3) 35%(1) Total water withdrawn, (2) total water
TC-SC-140a.1 consumed, percentage of each in regions withHigh or Extremely High Baseline Water StressThousand cubic
meters (m³),
Percentage (%)(1) Total water withdrawn was 12,622,808. 72% was at manufacturing facilities locatedin regions with High or Extremely High Baseline Water Stress.
(2) Total water consumed was 3,869,577. 71% was at manufacturing facilities locatedin regions with High or Extremely High Baseline Water Stress.1

Metric tons (t),Percentage (%)(1) 2,975(2) While we do not report the percentage of hazardous waste recycled, we dorecycle hazardous waste. However, regional variations in the designation of hazardous
materials and how hazardous waste is classified make it difficult to quantify thisactivity. Please see the ”Waste” section of the ”Environment” chapter of this Reportfor more details.

Description of efforts to assess, monitor, and
TC-SC-320a.1 reduce exposure of employees to humanhealth hazards

n/a

NXP uses controls and procedures to assess, monitor, and reduce the exposure of
our employees to human health hazards. These controls and procedures are detailed
in our management system, which is certified to the ISO 45001 standard. As part ofthis management system, we reduce risk by conducting risk assessments. Each risk
assessment generates a list of controls to limit risk. For example, personal protective
equipment (PPE) and extensive training for our employees are provided to effectively
control risks identified through the risk assessment. Continuous monitoring of the
documented controls is ongoing, to verify 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 the “Our Team Members” chapter ofthis Report.

Total amount of monetary losses as a result of
TC-SC-320a.2 legal proceedings associated with employee
health and safety violations

Reporting currency

In 2022, NXP did not incur monetary losses as a result of legal proceedings
associated with employee health-and-safety violations.

Waste
Management

TC-SC-150a.1(1) Amount of hazardous waste frommanufacturing, (2) percentage recycled

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance

Employee
Health & Safety

GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List

Please see the “Environmental, Social, and Governance” chapter, the “Emissions”
section of the “Environment” chapter, and “Appendix D: TCFD Index” of this Report.

Gigajoules (GJ),
Percentage (%)

OUR TEAM MEMBERSENVIRONMENTNXP 2022 Response

Energy(1) Total energy consumed, (2) percentage gridManagement in TC-SC-130a.1
electricity, (3) percentage renewable
Manufacturing
Water
Management

ESG

Code

Acronyms and Abbreviations

For this metric, High or Extremely High Baseline Water Stress is classified using the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct.

1

212

APPENDIX C – 2022 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEXINTRODUCTION
2022 ESG HIGHLIGHTS

Topic

Accounting Metric

Recruiting &Managing a
Percentage of employees that are (1) foreign
TC-SC-330a.1
Global & Skilled
nationals and (2) located offshore
Workforce

OUR BUSINESSECONOMY

Code

Product
Lifecycle
Management

Unit of Measure

NXP 2022 Response

Percentage (%)(1) At the end of 2022, 3% of employees were foreign nationals.
(2) At the end of 2022, the percentage of employees located offshore from NXP’s
country of domicile was 18% of our workforce in the Americas, 14% in EMEA, and
61% in APAC.

Percentage (%)

In 2022, ~21% of our finished-product portfolio contained IEC 62474-declarable
substances. This percentage is based on the number of sellable parts, not revenue.

TC-SC-410a.1

Percentage of products by revenue that contain
IEC 62474 declarable substances

TC-SC-410a.2

Processor energy efficiency at a system-level for: Various, by product(1) servers, (2) desktops, and (3) laptops
category

Metrics related to the energy-efficiency of a processor are not applicable to ourbusiness because NXP does not manufacture servers, desktops, or laptops.

Description of the management of risks
associated with the use of critical materials

See the “Product Stewardship” chapter, including the “Responsible Mineral
Sourcing” section, of this Report. Also see the Responsible Minerals Sourcing
webpage, which includes our Responsibly Sourced Minerals Policy, Conflict Minerals
Reporting Template, and Conflict Minerals Report filed under Form SD with the US
Securities and Exchange Commission.

GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

Materials
Sourcing

TC-SC-440a.1

Intellectual
Property
Protection &Competitive
Behavior

Total amount of monetary losses as a
TC-SC-520a.1 result of legal proceedings associated with
anticompetitive behavior regulations

n/aReporting currency

In 2022, NXP did not incur monetary losses as a result of legal proceedings
associated with anticompetitive-behavior regulations.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

213

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESS

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 climaterelated 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.

ECONOMY
GOVERNANCE

2022 TCFD Index
Governance

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT

Disclose the organization's governance around climate-related risks and opportunities.
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 Committee is updated on these efforts on a quarterly basis by representatives of the
ESG Management Board, and reports on these efforts in the plenary meetings of NXP’s Board of Directors. A monitoring dashboard of top key performanceindicators (KPIs) for our status on progress is reviewed on a quarterly basis.
a. Describe the board's
The Board and Board Committees consider climate-related issues when making decisions involving strategy, major plans of action, risk-management policies,
oversight of climate-related
annual budgets, and business plans. The Board and Board Committees consider climate-related issues when setting the organization’s performance objectives,
risks and opportunities.
monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures.

PRODUCT STEWARDSHIPThe 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.

APPENDICES

Please see the "ESG Board Oversight" subsection of the "Board of Directors" section of the "Governance" chapter of this Report for more details.

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations214

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION

2022 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 ESG strategy,
policies, and goals. Climate-related risks and opportunities are included in the ESG and Sustainability function within the Company and are managed in thesame way as other ESG matters.

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT

b. Describe management's
role in assessing andmanaging climate-relatedrisks and opportunities.

NXP's ESG Management Board, which is comprised of Management Team members and other senior leaders, oversees the implementation of ESG 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 Executive Vice President (EVP) of Global
Operations. The ESG Management Board meets monthly to ensure our ESG performance is in line with our strategy and goals. The Nominating, Governance,
and Sustainability Committee is updated on these efforts on a quarterly basis by representatives of the ESG Management Board, and reports on these efforts inthe 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, which includes members of theManagement Team and other senior leaders. While the ESG and EHS 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 of corrective-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.
Please see the "Governance" chapter in this Report for more details.

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

215

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION

2022 TCFD Index
Strategy2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIP

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material.
a. Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.
b. Describe the impact ofclimate-related risks andopportunities on theorganization's businesses,
strategy, and financial
planning.

While we discuss climate-related risks, we do not include all the risks that may ultimately affect NXP in this regard. We will conduct more in-depth scenario
analysis and disclose subsequent results in future reports. Some risks that are as yet unknown, or are believed not to be material, could ultimately have a major
impact on our businesses, objectives, revenues, income, assets, liquidity, and/or capital resources.
In 2022, NXP joined the SEMI Semiconductor Climate Consortium (SCC) as a founding member to contribute to and accelerate the semiconductor industry’s
efforts to reduce the emission of GHGs.

c. Describe the resilience ofthe organization's strategy,
taking into considerationdifferent climate-related
scenarios, including a 2°C
or lower scenario.

Risk Management

APPENDICES

Disclose how the organization identifies, assesses, and manages climate-related risks.

ESG Performance

NXP maintains lists of identified risks to formally evaluate external and internal issues and identify how they may impact the strategic direction and business
operations of the company, our customers, our suppliers, our communities, and other interested parties. We continue to include climate-related risks withina. Describe the organization's
these assessments, and within our Enterprise Risk-Management Program. We will expand on this in the future as we increase our understanding of how climate
processes for identifying
risks may impact our business. Risks are prioritized at the corporate and local levels for their scope and operational controls and are reviewed annually. Updates
and assessing climateare completed through risk-assessment reviews and with inputs from executive EHS Board meetings, management reviews, functional staff meetings, andrelated risks.
specialized councils. Existing and emerging regulatory requirements are taken as inputs to the risk assessments, as are benchmarks from other companies andother stakeholder input received from customers, investors, and the public.

GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

216

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY2022 TCFD Indexb. Describe the organization's
processes for managing
climate-related risks.
Site and Corporate Business-Continuity Teams regularly review and update assessments of risks, including climate-related risks, and their associated actionc. Describe how processes for plans. We document high-priority risks and identify action plans to reduce the relative impact of those risks. Risk assessments and action plans are used as
identifying, assessing, and input into formal goal planning, management review updates, and, if applicable, capital financial planning. Feedback obtained from management reviews, theSustainability Office, the ESG and EHS Management Boards, Business Continuity Teams, and other stakeholders is also incorporated into the risk assessments
managing climate-relatedrisks are integrated into the and action plans.
organization's overall risk
management.

GOVERNANCE
ESG

Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Our disclosure of climate-related metrics provides current and historical information for analysis of our Scope 1, 2, and 3 emissions. In the "Environment"
chapter of this Report, we include both absolute and normalized data to factor in our production index and align with our semiconductor peer group.

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performancea. Disclose the metrics usedby the organization toassess climate-related risks
and opportunities in linewith its strategy and risk
management process.

Scope 1 emissions includes an in-depth, ten-year analysis of our emissions of perfluorinated compounds (PFCs), heat-transfer fluids (HTFs), fossil fuels, andN2O. Scope 2 emissions includes a ten-year analysis of electricity from our manufacturing and non-manufacturing facilities. Scope 3 emissions includes a tenyear analysis of business travel and product transportation. Scope 1, 2, and 3 emissions metrics are used by NXP to ensure alignment with our climate-related
strategy and risk-management process.
All emissions are reported in alignment with the accounting standards of the GHG Protocol. In 2022, NXP adopted the 2019 Refinement to the 2006
Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories. Having adopted the 2019 Refinement, we haveupdated some of our historical data. As a result, the PFC emissions and, by extension, our Scope 1 emissions, differ from what were previously reported. To be
specific, we now use IPCC 2006 Tier 2a for 2012 through 2020 PFC data and IPCC 2019 Tier 2c for 2021 and 2022 PFC data.
We discuss water, energy, and waste with equivalent levels of detail. We make all environmental data available in this Report and/or on our website.

GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

217

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION

2022 TCFD Index
GHG Disclosure

Unit

2019

2020

2021

2022

PFCs

tCO2e

288,566

217,326

346,299

400,261

HTFs

tCO2e

113,810

82,100104,51062,499Fossil Fuels

tCO2e41,862

41,81944,22946,068N2O

tCO2e

13,592

14,49815,18815,956

Other Scope 1 Emissions

tCO2e

688

720

777

1,102

Total Scope 1 Emissions

tCO2e458,518

356,462

511,004

525,886

Total ManufacturingtCO2e654,294

604,013642,640

613,620

Total Non-ManufacturingtCO2e21,66921,64822,35425,453

Total Scope 2 Emissions (Market-Based)

tCO2e

675,963625,661

664,994

639,073

Product Transport

tCO2e

23,682

24,577

20,153

20,555Business TraveltCO2e

13,008

1,258

1,288

9,098

Total Scope 3 Emissions

tCO2e

36,69025,83521,441

29,6532022 ESG HIGHLIGHTS

Scope 1 GHG Emissions

OUR BUSINESSECONOMY
GOVERNANCE
ESG

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

OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Scope 2 GHG Emissions

Scope 3 GHG Emissions1

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Our Scope 3 emissions are currently limited to business travel and product transport. We continue to work with our supply chain to further quantify Scope 3 emissions.

1

218

APPENDIX D – 2022 TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) INDEXINTRODUCTION

2022 TCFD Index
Our goal to be carbon neutral by 2035 presents multiple layers of complexity, given that we use renewable and non-renewable electricity, fossil fuels, PFCs, andHTFs. The picture becomes even more complex when we consider annual increases in semiconductor production which, in turn, increase our GHG emissions. In
2022, to keep ourselves accountable, we committed to aligning our targets with the Science Based Targets initiative (SBTi)are compiling data for SBTi validationand have identified the a number of mid-term goals.

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

c. Describe the targets usedby the organization to
manage climate-relatedrisks and opportunities,
and the organization's
performance against thesetargets.

By 2027, our mid-term goal is to reduce Scope 1 & 2 absolute emissions 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, and optimizing manufacturing processes. Sinceelectricity 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 emissions reduction.
In 2022, the demand for our products increased 9% compared to 2021. That meant our electricity, PFC, and HTF consumption increased as well. However,
due to conservation and reduction projects, our absolute Scope 1 & 2 emissions decreased 1% and our normalized Scope 1 & 2 emissions decreased by 9%compared to our baseline year, 2021. While a 9% production increase is significant, our ongoing efforts to conserve electricity, optimize our processes, increase
renewable electricity use, upgrade tools, and install abatement equipment, resulted in a decrease for absolute and normalized Scope 1 & 2 emissions.

OUR TEAM MEMBERS

In 2022, as part of our efforts to reduce our Scope 2 emissions and achieve our goal for renewable electricity, our renewable energy as a portion of electricity
from the grid increased by 4 percentage points to a total of 35% renewable electricity for the company overall.

ENVIRONMENT

We also have a mid-term goal to recycle 60% of wastewater by 2027. In 2022, we recycled 48% of wastewater, an increase of 1 percentage point compared to2021, and an increase of 16 percentage points compared to 2012.

SUPPLIER ENGAGEMENT

Please see the "Goals" section of the "Environmental, Social, and Governance" chapter, and the "Emissions," "Energy," and "Water" sections of the"Environment" chapter of this Report for more details.

PRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

219

APPENDIX E – UNITED NATIONS GLOBAL COMPACT (UNGC)INTRODUCTION

In 2017, NXP became a signatory to the United Nations Global Compact, the world’s largest corporate-sustainability initiative.
Our UN Global Compact Communication on Progress can be found on the UN Global Compact website.

2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

220

APPENDIX F - SUSTAINABILITY POLICYINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index

OUR COMMITMENTFor NXP, Secure Connections for a Smarter World involves working practices that are responsible andsustainable. We provide a safe working environment, promote good health, and strive to minimize theenvironmental impact of our activities. We also work hard to do more than 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 our number 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. This
policy affects the way we manage our company and the way we interact with society at large.

OUR POLICY

Products
NXP is committed to creating the highest quality products and packages. These Secure Connections
for a Smarter World are developed to provide a positive contribution to society. With each new productgeneration we aim to reduce the environmental impact of their use and disposal.
Operations
NXP continually strives to improve our operations and minimize our impact on the environment, weconserve natural resources, minimize our emissions, responsibly source our minerals, and try to phaseout hazardous substances in our products and processes.
Compliance
For our products and processes, NXP complies with applicable legislation, regulations, codesof practice, often going beyond specified standards. NXP has a management system covering
Environment, Health & Safety, Social Responsibility and Product Compliance that are continuously
improved. Where laws and regulations do not provide adequate controls, NXP adopts its own detailed
standards.
Local initiatives
NXP works closely with partners and individuals to establish meaningful relationships that support andstrengthen the communities in which we operate.

Values
NXP’s core values consist of raising the bar, engaging curiosity, taking initiative, working together anddeveloping deep core competence, driven by a total quality mindset. These values form the basis of
our customer-focused passion to win.

Dialog
NXP actively participates in industry platforms and engages in open, ongoing dialogs with employees,
customers, investors, authorities, the public, and other key stakeholders to continuously improve oursustainability performance.

EthicsThe NXP Code of Conduct defines our principles and high standards, which are applied to our businesspractices and those of our global supply chain. This Code is incorporated in all employee contracts,
encouraging respectful, and professional standards of behavior across our global network of sites.

Transparency
NXP publishes sustainability results both internally and externally, showing our targets andmeasurements on a range of metrics.

TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List

Human Rights
NXP believes that business can only flourish in societies where human rights are protected andrespected. NXP recognizes that business has the responsibility to respect human rights and is capableof 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.

This policy and its resulting actions are regularly reviewed and updated
to meet our stakeholders’ needs.

Acronyms and Abbreviations
Employees
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, andwhere everyone is treated with respect and dignity.

Kurt Sievers
President and CEO, NXP Semiconductors
NXP Sustainability Policy, May 2020

221

APPENDIX G – SCOPE 1 CHEMICAL LIST OF EMISSIONSINTRODUCTION

We strive to be transparent with our stakeholders regarding our carbon footprint, specifically how we determine what is and is not considered Scope 1 Emissions. Below is the list of chemicals we
identify as Scope 1 Emissions, which are subsequently reported as Scope 1 in the "Emissions" section of the "Environment" chapter of this Report.

2022 ESG HIGHLIGHTS

Scope 1 Chemical List of Emissions
OUR BUSINESS

Unit

2018

2019

2020

2021

2022

C2F6

tCO2e

122,836

57,28437,59943,83652,221CF4

tCO2e

162,521

123,419

91,538

117,939

127,900

CHF3

tCO2e

35,171

32,59829,63341,81845,564SF6

tCO2e24,38323,495

19,95387,760103,255

NF3

tCO2e

44,13939,43528,82445,64860,553

CH3F

tCO2e

14

16

C3F8

tCO2e

30,410

2,746

2,968

1,385

1,483

C4F8

tCO2e

7,451

9,521

6,396

7,518

9,206

C4F8O

tCO2e

0

0

0

0

0

CH2F2

tCO2e

33

62

21

152

60

C4F6

tCO2e

466

0

380

225

0

C5F8

tCO2e

1

6

14

4

4

Total PFCs

tCO2e

427,411

288,566

217,326

346,299

400,261tCO2e

15,115

13,592

14,49815,18815,956

Perfluorinated Compounds (PFCs) in Tons CO2e1,2

ECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index

N2O Emissions in Tons CO2e

UNGC

Total N2O

Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

We use IPCC 2006 Tier 2a for 2018 through 2020 PFC data and IPCC 2019 Tier 2c for 2021 and 2022 PFC data.
The CH3F compound is relevant to the IPCC 2019 Tier 2c standards that we use for 2021 and 2022 PFC data only, so we do not report this metric for 2020 and previous years.

1
2

222

APPENDIX G – SCOPE 1 CHEMICAL LIST OF EMISSIONSINTRODUCTION

Scope 1 Chemical List of Emissions

Unit

2018

2019

2020

2021

2022

R-22

tCO2e

332

197

150

188

181

R-123

tCO2e

27

22

32

5

41

R402A

tCO2e

0

0

0

0

0

R-134a

tCO2e

1,399

766

2,505

3,258

5,813

R-23

tCO2e

52

93

121

0

19

R-404A

tCO2e

119

135

93

155

49

R-407C

tCO2e

0

0

0

0

0

R-410A

tCO2e

95

244

113

35

0

R-422D

tCO2e

0

0

0

0

0

tCO2e

68,89589,47854,48173,78434,096Heat-Transfer Fluids (HTFs) in Tons CO2e2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG

Pure HFCs

OUR TEAM MEMBERS

HFC Mixtures
ENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index

Perfluorocarbons
FC40

SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

223

APPENDIX G – SCOPE 1 CHEMICAL LIST OF EMISSIONSINTRODUCTION

Scope 1 Chemical List of Emissions

Unit

2018

2019

2020

2021

2022

FC3283tCO2e

18,49017,544

19,307

21,775

18,595

FC72

tCO2e

0

0

0

0

0

FC770

tCO2e

1

4

22

22

51

HFE7100

tCO2e

1,027

931

675

801

388

HFE7200

tCO2e

131

144

119

139

109

HFE7500

tCO2e

42

51

109

67

128

Galden HT 80

tCO2e

0

0

0

0

27

Galden HT 135

tCO2e

0

682

610

318

477

Galden HT 200

tCO2e

2,544

1,638

2,268

3,522

2,142

Galden HT 270

tCO2e

510

810

480

0

180

Galden ZT 130

tCO2e

0

0

0

0

0

Galden HT110

tCO2e

599

791

804

231

203

Galden D02TS

tCO2e

0

0

0

0

0

Galden PFS-2

tCO2e

490

280

210

210

140

tCO2e

94,751

113,809

82,100104,51062,638Polyfluoroether Mixtures
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Total HTFs

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

224

APPENDIX G – SCOPE 1 CHEMICAL LIST OF EMISSIONSINTRODUCTION

Scope 1 Chemical List of Emissions

Unit

2018

2019

2020

2021

2022

HFC-32 (CAS 75-10-5)

kg

0

0

0

0

0

HFC-41 (CAS 593-53-3)

kg

3

14

7

20

19

HFC-32 (CAS 75-10-5)

kg

0

0

18

133

69

HFC-41 (CAS 593-53-3)

kg

0

0

0

0

0

HFC-134 (CAS 359-35-3)

kg

52

40

40

41

0

HFC-134a (CAS 811-97-2)

kg

1,360

450

464

448

737

HFC-22 (CAS 75-45-6)

kg

60

32

8

8

56

HFC-123 (CAS 306-83-2)

kg

45

0

45.2

45

0

Total ODPs and Non-ODPs

kg

1,520

536

582

695

881

Emissions of Ozone-Depleting (ODP) and Non-ODP Substances in kg
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMYHalogenated or Chlorinated Hydrocarbons (Non-ODP) Used in Processes

GOVERNANCE

Non-ODP Refrigerants for Cooling Systems Such as Air Conditioning
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICES

Ozone-Depleting Substances From Cooling Systems Such as Air Conditioning

ESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

225

APPENDIX H – 2022 TOP 100 SUPPLIER LISTINTRODUCTION

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 98% ofprocurement expenditures in 2022 for materials, manufacturing, and assembly of our products worldwide.

2022 ESG HIGHLIGHTSOUR BUSINESS

2022 Top 100 Supplier List
AAM

DUPONTKENLY PRECISIONNGKEDADVANCED ASSEMBLY MATERIALSENTEGRISKESNIPPON MICROMETAL CORPORATION

AIR LIQUIDEEPAK

KETECAON SEMIALLTEK TECHNOLOGYFUJIFILM ELECT MATERALSKINSUS INTERCONNECT TECHNOLOGY

PEAK

AMKOR

FUJIMIKOSTAT

POWERCHIP

ARDENTECFURUKAWAKOSTECSYSPVS CHEMICALSASEGLOBAL WAFERS

KYOCERARJR TECHNOLOGIESASMCGLOBALFOUNDRIESLEADING TECHNOLOGIESSAMSUNG SEMICONDUCTORASTHANA MICRONLG INNOTEKSENJU METAL

ATX

HDS

LINDE

SHANGHAI SIRUIXIN MATERIALSBASSHENDONLINTEC

SHIN-ETSUBEIFANG QITI CHANPIN

HENKELLINXENSSHINKO ELECTRONICS

CHANG WAH ELECTRONICSHERAEUSMITSUI HIGH-TEC

SHOWA DENKO MATERIALSGRI Index

CHIPBONDHID

MOX GASES

SILTRONICSASB Index

CMC MATERIALSHONEYWELL

MS SUN TECHNOLOGYSK HYNIX

UNGC

CPAK

IQE

MSSCHRAMBERG

SKYWORKS

Sustainability Policy

DAEDUCK ELECTRONICS

ITW

MULTEK TECHNOLOGIESSMICTop 100 Supplier ListDALSA

JENTECH PRECISION INDUSTRIAL

MURATASOITEC

Acronyms and Abbreviations

DATANG NXP SEMICONDUCTORSJSR CORPORATION

NANYA

SPIL

DISCO

KENJI TECHNOLOGYNEXPERIASTATS CHIPPACECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance

TCFD Index

Scope 1 Chemical List

226

APPENDIX H – 2022 TOP 100 SUPPLIER LISTINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY2022 Top 100 Supplier List
STMICROELECTRONICS

TANAKATSMC

VERSUMSUBTRON TECHNOLOGY

TCI

UMC

WENSONSUMCOTECHNICUMTCWIN

SUMIKATFMEUTAC

WINBOND ELECTRONICS

SUMITOMO BAKELITE

TRIO-TECHVANGUARD

WOLFSPEEDGOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

227

APPENDIX I – ACRONYMS AND ABBREVIATIONSINTRODUCTION

1 to 92022 ESG HIGHLIGHTSOUR BUSINESSGOVERNANCE
ESG
OUR TEAM MEMBERS

Chief Financial Officer

12NC

12-Digit Numerical Code (NXP)

cm

Centimeter

3TG

Tin, Tantalum, Tungsten, and Gold

CMRT

Conflict Minerals Reporting Template (RMI)

CRT

Cobalt Reporting Template (RMI)CSO

Civil Society Organization

CSRD

Corporate Sustainability Reporting Directive (EU)A

ECONOMY

CFO

AI

Artificial Intelligence

AIM

Artificial Intelligence in Mobility Initiative (NXP)

AIP

Annual Incentive Plan (NXP)

APAC

Asia-Pacific

DCGC

Dutch Corporate Governance Code

AR5

Assessment Report #5 (IPCC)

DE&I

Diversity, Equality, and Inclusion (NXP)

ASE

Architecture and System Engineering School (NXP)

DEFRA

Department of Environment, Food, and Rural Affairs (UK)ASE 1

Architecture and System Engineering School Basic (NXP)

DIP

Dual In-Line Package

D

ASE 2

Architecture and System Engineering School Advanced (NXP)

DL

Direct LaborENVIRONMENT

ATMC

Austin Technology and Manufacturing Center (NXP)DLSDistinguished Lecturer Series (NXP)

SUPPLIER ENGAGEMENT

AusPREP

Austin Pre-Freshman Engineering Program(Huston-Tillotson University)

DSP

Digital Signal Processor

EBTF

European Business Tax Forum

ECHA

European Chemicals Agency

ECO-Products

Environmental Compliance Organization for Products (NXP)

EHS

Environment, Health, and Safety

EICC

Electronics Industry Citizenship Coalition

ELV

End-of-Life Vehicle Directive (EU)

EMEA

Europe, the Middle East, and Africa

PRODUCT STEWARDSHIPE

B

APPENDICESESG Performance

BALTBlack Achievement Leadership Team (NXP)

BEPS

Base Erosion and Profit Shifting (OECD)GRI Index
SASB Index
TCFD Index

C
CAHRA

Conflict-Affected and High-Risk Areas (EPRM)CANIETI

Chamber of Electronics, Telecommunications, and Information
Technologies (Mexico)

Top 100 Supplier List

CAS

Chemical Abstracts Service

EMRT

Extended Minerals Reporting Template (RMI)

Acronyms and Abbreviations

CC

Compensation Committee (NXP)

EPA

Environmental Protection Agency (US)CC EAL

Common Criteria Evaluation Assurance Level

EPRM

European Partnership for Responsible Minerals

CDSP

Citizen Data Scientist Program (NXP)

ERG

Employee Resource Group (NXP)

UNGC
Sustainability Policy
Scope 1 Chemical List

228

APPENDIX I – ACRONYMS AND ABBREVIATIONSINTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE

Enterprise Risk Management

HFCs

Hydrofluorocarbons

ESG

Environmental, Social, and Governance

HHV

High Heat Value

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

EVP

Executive Vice President

IATFInternational Automotive Task Force

IDL

Indirect LaborOUR TEAM MEMBERSENVIRONMENT

FCPA

Foreign Corrupt Practices Act

IEAInternational Energy Agency

FPGA

Field-Programmable Gate ArrayIFRSInternational Financial Reporting Standards

FRC

FIRST Robotic Competition (NXP)

IITH

Indian Institute of Technology Hyderabad

FT

Full Time

ILO

International Labour Organization

FTE

Full-Time Equivalent

IoTInternet of Things

IPCC

Intergovernmental Panel on Climate Change

ISOInternational Organization of Standardization

ISO/IEC

International Organization of Standardization / International
Electrotechnical Commission

IT

Information Technology

IWD

International Women’s Day

JV

Joint Venturekg

Kilogram

KPI

Key Performance IndicatorG
GAAP

Generally Accepted Accounting Principles (US)GaN

Gallium Nitride

APPENDICES

GBI

Global Business Initiative on Human Rights

ESG Performance

GHG

Greenhouse Gas

GRI Index

GJ

Gigajoules

GRI

Global Reporting Initiative

UNGC

GS&A

General, Sales, and Administrative

Sustainability Policy

GSMA

Groupe Speciale Mobile Association

PRODUCT STEWARDSHIPSASB Index
TCFD Index

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

I

F

ESG

SUPPLIER ENGAGEMENT

ERM

H
HC

Headcount

HEAT

Hispanic Education Awareness Team (NXP)

J

K

229

APPENDIX I – ACRONYMS AND ABBREVIATIONSINTRODUCTION

kTons

Kilotons

kWh

Kilowatt Hours

O

2022 ESG HIGHLIGHTSL
OUR BUSINESSECONOMY
GOVERNANCE

Liquified Petroleum Gas

LRQA

Lloyd’s Registrar Quality Assurance

Ozone-Depletion Potential

ODS

Ozone-Depleting SubstanceOECD

Organization for Economic Cooperation and Development

OSHA

Occupational Safety and Health Administration (US)PCI DSS

Payment Card Industry Data Security Standard

P
M

ESG
OUR TEAM MEMBERSENVIRONMENT

LPG

ODP

m

Meter

PFAs

Polyfluoroalkyl Substances

ML

Machine Learning

PFCs

Perfluorinated Compounds

MOEA

Minister of Economic Affairs (Taiwan)

PFOA

Perfluorooctanoic Acid

MT

Management Team (NXP)

PFOS

Perfluorooctyl Sulfonates

PM

Program Manager

POP

Persistent Organic Pollutants (EU)N
NASDAQ

National Association of Securities Dealers Automated Quotations

PPE

Personal Protective Equipment

NCC

Nominating and Compensation Committee (NXP)

PT

Part Time

NCKU

National Cheng Kung University (Taiwan)

NGC

Nominating and Governance Committee (NXP)

APPENDICESNGO

Non-Governmental Organization

QFN

Quad Flat No-Lead Package

ESG Performance

NOV

Notice of Violation

GRI Index

NOx

Nitrogen Oxides

NSBE

National Society of Black Engineers (US)RBA

Responsible Business Alliance

UNGC

NTHU

National Tsing Hua University (Taiwan)

REACH

Registration, Evaluation, Authorisation, and Restriction of Chemicals

Sustainability Policy

NTU

National Taiwan University

RMAP

Responsible Minerals Assurance Process (RMI)

NXPI

NXP Semiconductors N.V.

RMB

Renminbi Currency (Mainland China)

NYCU

National Yang Ming Chiao Tung University (Taiwan)

RMI

Responsible Minerals Initiative

RoHS

Restriction of Hazardous Substances

SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPSASB Index
TCFD Index

Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

Q

R

230

APPENDIX I – ACRONYMS AND ABBREVIATIONSINTRODUCTIONS

TJU

Tianjin University (Mainland China)

TSCA

Toxic Substances Control Act (US)SAI

Social Accountability International

SASB

Sustainability Accounting Standards Board

SBTi

Science Based Targets Initiative

OUR BUSINESS

SCC

Semiconductor Climate Consortium (SEMI)

UDHR

Universal Declaration of Human Rights

ECONOMYSCIP

Substances of Concern in articles such as or In complex objects(Products) (EU)UK

United Kingdom

SDSpecialized Disclosure Form for Conflict Minerals (RMI)

UKBA

UK Anti-Bribery Act 2010

SDGs

Sustainable Development Goals (UN)UN

United Nations

SEC

Securities and Exchange Commission (US)UNGC

UN Global Compact

SIA

Semiconductor Industry Association

UNHCR

UN High Commissioner for Refugees

SIL

Single In-Line Package

US

United States

SoC

System on a Chip

USD

US Dollar

SOx

Sulfur Oxides

UWB

Ultra-Wideband

SOX

Surbanes-Oxley Act (US)SPA

Strategic Planning Alignment (NXP)

SRC

Semiconductor Research Consortium

VAP

Validated Assessment Program (RBA)

SSMC

Systems on Silicon Manufacturing Company (Singapore)

VHTO

National Expert Organization on Girls in STEM (Netherlands)

STEM

Science, Technology, Engineering, and Math

VPP

Voluntary Protection Programs (OSHA)

SVHCs

Substances of Very High Concern

VOCs

Volatile Organic Compounds

SVP

Senior Vice President

WEEE

Waste Electrical and Electronic Equipment (EU)

WFD

Waste Framework Directive (EU)

WiN

Women in NXP

WiTWomen in Technology (NXP)

WRIWorld Resource Institute

WSC

World Semiconductor Council

WSI

Water Stress Index (UN)2022 ESG HIGHLIGHTSGOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC

T

Sustainability Policy

TCFD

Task Force on Climate-Related Financial Disclosures

Scope 1 Chemical List

TCIR

Total Case Incident Rate (OSHA)Top 100 Supplier List

tCO2eTons of CO2 Equivalent

TEDA

Tianjin Economic-Technological Development Area (Mainland China)

Acronyms and Abbreviations

U

V

W

231

APPENDIX I – ACRONYMS AND ABBREVIATIONSINTRODUCTION

X
None2022 ESG HIGHLIGHTSYOUR BUSINESSECONOMY
GOVERNANCE

YBK

Yayasan Basmi Kemiskinan/Poverty Eradication Foundation (Malaysia)

YIDC

Young Innovator Design Challenge (NXP)

Z
None

ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENTPRODUCT STEWARDSHIPAPPENDICESESG Performance
GRI Index
SASB Index
TCFD Index
UNGC
Sustainability Policy
Scope 1 Chemical List
Top 100 Supplier List
Acronyms and Abbreviations

232

FORWARD-LOOKING STATEMENTS
INTRODUCTION
2022 ESG HIGHLIGHTSOUR BUSINESSECONOMY
GOVERNANCE
ESG
OUR TEAM MEMBERSENVIRONMENT
SUPPLIER ENGAGEMENT

This document includes forward-looking statements which include statements regarding NXP’sbusiness strategy, financial condition, results of operations, the expected material weakness in
our internal control over financial reporting, including the timeline to remediate the expectedmaterial weakness, market data, as well as any other statements which are not historical facts. By
their nature, forward-looking statements are subject to numerous factors, risks and uncertainties
that could cause actual outcomes and results to be materially different from those projected.
These factors, risks and uncertainties include the following: market demand and semiconductor
industry conditions; our ability to successfully introduce new technologies and products; thedemand for the goods into which NXP’s products are incorporated; potential impacts of the
COVID-19 pandemic; trade disputes between the U.S. and China, 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; the ability to generate sufficient cash, raise sufficient capital or
refinance corporate debt at or before maturity to meet both NXP’s debt service and research anddevelopment and capital investment requirements; our ability to accurately estimate demand
and match our production capacity accordingly or obtain supplies from third-party producers
to meet demand; our access to production capacity from third-party outsourcing partners, andany events that might affect their business or NXP’s relationship with them; our ability to secureadequate and timely supply of equipment and materials from suppliers; our ability to avoid
operational problems and product defects and, if such issues were to arise, to correct themquickly; our ability to form strategic partnerships and joint ventures and to successfully cooperatewith our alliance partners; our ability to win competitive bid selection processes; our ability todevelop products for use in customers’ equipment and products; the ability to successfully hire
and retain key management and senior product engineers; the invasion of Ukraine by Russia andresulting regional instability, sanctions and any other retaliatory measures taken against Russia,
which could adversely impact the global supply chain, disrupt our operations or negatively
impact the demand for our products in our primary end markets; and, the ability to maintain
good relationships with NXP’s suppliers. In case tax laws change, this could have an effect on
our estimated effective tax rates. In addition, this document contains information concerning thesemiconductor industry and NXP’s market and business segments generally, which is forwardlooking in nature and is based on a variety of assumptions regarding the ways in which thesemiconductor industry and NXP’s market and business segments may 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 notknow 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.
There can be no assurances that a pandemic, epidemic or outbreak of contagious diseases, suchas COVID-19, will not have a material and adverse impact on our business, operating results andfinancial condition in the future. Readers are cautioned not to place undue reliance on theseforward-looking statements, which speak to results only as of the date the statements were
made. Except for any ongoing obligation to disclose material information as required by theUnited 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 toreflect any future events or circumstances or otherwise. For a discussion of potential risks anduncertainties, 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.

PRODUCT STEWARDSHIPAPPENDICES

233







www.nxp.com
NXP Semiconductors N.V. (NASDAQ: NXPI) brings together bright minds to create breakthrough technologies that make the connected world better, safer and moresecure. 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 more sustainable future. Built on more than 60 years of combined experience andexpertise, the company has approximately 31,000 employees in more than 30 countries and posted revenue of $13.21 billion in 2022. Find out more at www.nxp.com.