2019 CORPORATECITIZENSHIP REPORTTable of contents
CEO letter

3

TI at a glance4

Our commitment and report overview

5

Sustainability
Environmental impact
Air emissions
Greenhouse gases (GHGs)
Biodiversity
Energy use
Water and wastewater management
Environment, safety and healthResponsible manufacturing and distribution
Semiconductors
Education technology
Packing and shipping
Materials management

6
7
7
7
9
10
11
13
14
14
14
15
16

Responsible business practices
GovernanceRisk management and business continuity
Supply chain responsibility
Conflict minerals
Labor and human rights at TI
Ambitions, values and ethics
Information protection
Public policy

18
18
19
20
23
24
25
26
27

Workplace
Diversity and inclusion
Recruitment
Retention
Development
Compensation
Work-life balance and resources
Employee safety and health

28
29
31
32
32
34
34
35

Giving and volunteering
Investing in STEM education
GivingVolunteering

37
38
39
40

Global Reporting Initiative index

43CEO letter
As engineers at Texas Instruments (TI), we are fortunate to work on
exciting technology and help our customers innovate to create abetter world.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

For decades, we have operated with a passion to create abetter world by making electronics more affordable throughsemiconductors. We were pioneers in the transition from vacuum
tubes to transistors and then to integrated circuits. Each generationof innovation builds upon the last to make semiconductors smaller,
more power-efficient, more reliable and more affordable. This
progress enables semiconductors to go into an ever-expanding
number of markets and applications.
Our passion alone is not enough in an industry that is constantly
evolving. Building a great company requires a special culture to
thrive for the long term. For years, we’ve run our business andinvested in our people and communities with three overarching
ambitions in mind. First, we will act like owners who will own thecompany for decades. Second, we will adapt and succeed in aworld that’s ever-changing. And third, we will be a company that
we’re personally proud to be a part of and would want as ourneighbor. When we’re successful in achieving these ambitions, ouremployees, customers, communities and shareholders all win.

• First, our ambitions guide how we run our business and are
the foundation of our approach to citizenship. Central to theseambitions is a belief that in order for all stakeholders to benefit,
the company must grow stronger over the long term.
• Second, our commitment to citizenship directly relates to our
passion to create a better world by making electronics more
affordable through semiconductors. Semiconductors are andwill continue to play a critical role in helping reduce impact
on the environment through electronics: they reduce energy
consumption by making electric motors smarter, they electrify
vehicles for a cleaner environment, and they preserve natural
resources by sensing water and gas leaks. There is a growing listof the ways in which semiconductors help create a better world.
The importance of citizenship, including ESG and sustainability
priorities, is not new to us; it’s been part of our formula for successfor decades. With our ambitions guiding our decision-making
for the long term and our products helping create a better world,
we are confident that our collective efforts will be impactful andlong-lasting. Our commitment to stay true to our ambitions is
unwavering, and the progress we share in our 2019 Citizenship
Report are a testament to this commitment.

There are two important distinctions regarding our commitment tocitizenship, which includes environmental, social and governance(ESG) and sustainability priorities:
Rich Templeton,
Chairman, President and CEO

Here are a few ways in which we created a better world and a stronger company in 2019. We:• Are on track to achieve our five-year greenhouse gas (GHG) reduction goal by the end of 2020.
• Reused more than a quarter of the water used on-site.
• Received a 100% rating by the Human Rights Campaign Corporate Equality Index for the fourth year in a row.
• Were recognized by the National Association of Female Executives for efforts to advance women for the 15th year in a row.
• Gave $23.1 million to support education in partnership with the TI Foundation and employees.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

3

Revenue by segment (2019)• Founded in 1930.
• Headquartered in Dallas, Texas.
• Publicly traded (Nasdaq: TXN).
• Richard K. Templeton is chairman, president and CEO.
• ~30,000 employees:− 12,000 in the Americas− 16,000 in Asia-Pacific− 2,000 in Europe• ~80,000 products for ~100,000 customers.

CEO letter
TI at a glance
Our commitment andreport overview• Industrial and automotive, the markets with the best opportunities
for our products, made up 57% of our 2019 revenue.

TI at a glance

Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS$14.38Design sites
Dallas, TX
Tucson, Arizona
Santa Clara, California
Shangai, China
Shenzhen, China
Bangalore, India
Tokyo, Japan
Manchester, New Hampshire
Taipei, Taiwan
Sugar Land, Texas

Industrial: 36%
Personal electronics: 23%
Automotive: 21%
Communication equipment: 11%
Enterprise systems: 6%
Other: 3%$14.38billion2019 major worldwide locations
TI headquarters
Dallas, Texas

Capital expenditures: $874 million
R&D: $1.54 billion

billionRevenue by market (2019)• 14 manufacturing sites worldwide, tens of billions of chips
produced each year.

Table of contents

Analog: $10.22 billion
Embedded: $2.94 billion
Other: $1.22 billion

1

Manufacturing sites
Dallas, TX
Chengdu, China
Freising, Germany
Aizuwakamatsu, Japan
Miho, Japan
South Portland, Maine
Melaka, Malaysia
Kuala Lumpur, Malaysia
Aguascalientes, Mexico
Baguio, Philippines
Pampanga, Philippines
New Taipei City, Taiwan
Richardson, Texas
Sherman, Texas
Greenock, United Kingdom

1 We define major locations (significant operations) as all manufacturing facilities and design and sales offices 50,000 square feet or larger or those with employee populations greater than 100 as of Dec. 31, 2019.
TI sold the Greenock, United Kingdom, site in 2019, but we included data from its first-quarter 2019 operations in this report.

4

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

Our commitment
and report
overview

Giving and volunteering
Global Reporting
Initiative index

We have a long-standing commitment to citizenship and as withprevious years, our 2019 Corporate Citizenship Report provides
insight into how we think about – and how we actually perform– in various environmental, social and governance (ESG) andsustainability areas relevant to our business.
The foundation of our approach to citizenship is a belief that inorder for all stakeholders to benefit, the company must growstronger over the long term. That is why the ambitions governing
our decision-making are so powerful; they state that:• We will act like owners who will own the company
for decades.
• We will adapt and succeed in a world that’s ever-changing.
• We will be a company that we’re personally proud tobe a part of and would want as our neighbor.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

When we’re successful in achieving these ambitions, ouremployees, customers, communities and shareholders all benefit.
In our 2019 report, we restructured the information from last year tointegrate our narrative, goals and results for key topic areas whilestill reporting in accordance with the Global Reporting Initiative(GRI) framework.
Every two years, we solicit input from internal and external
stakeholders, and examine third-party sustainability assessments
and peer benchmarks to determine which topics to cover inthe report. We have been using the GRI reporting framework
since 2006 to disclose our programs and progress. To better
meet the disclosure needs of company stakeholders, we are
evaluating whether to incorporate applicable disclosures from theSustainability Accounting Standards Board and the Task Force on
Climate-Related Financial Disclosures into future reports.

5

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

Sustainability

Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

To operate sustainably, TI invests in programs
and sets performance improvement goals to
operate efficiently, conserve natural resources
and materials and reduce costs. In this section,
we describe the management systems, policies,
key strategies and programs that enable us to
identify and evaluate ways to meet these goals.
We make these efforts to protect human healthand the environment; to maintain compliance with
global laws and regulations; and to adhere to ourambitions, values, code of conduct and policies.

External recognition for sustainable business practices• Dow Jones Sustainability Indices, “North America
Component,” 13th year.
• 3BL Media, “100 Best Corporate Citizens,” 17th year.
• Fortune magazine, “World’s Most Admired Companies.”• Barron’s “The 100 Most Sustainable U.S. Companies.”• Euronext Vigeo, U.S. 50 (50 most advanced U.S.
companies for corporate responsibility), sixth year.

6In the U.S., TI produces relatively small quantities of air emissions
that are regulated, such as volatile organic compounds, nitrous
oxides, carbon monoxide, ozone, lead, sulfur dioxide andparticulate matter. We report air emissions data to the U.S.
Environmental Protection Agency (EPA) and state regulators.
Chemical releases and pollution prevention activities also arereported to the EPA’s Toxic Release Inventory.

Air emissions

Volatile organic
compounds(VOCs)

120
105.8

Metric tons

100

Table of contents
CEO letter

Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

TI actively implements various projects and voluntarily sets sitespecific chemical-reduction goals to keep air emissions below
permitted limits. While reduction methods vary according to
specific regulations, they generally include:• Phasing out ozone-depleting substances inmanufacturing support equipment.
• Using thermal oxidizers, catalysts and abatement
systems such as filters, wet scrubbers and purifiers to
reduce or remove pollutants before they are emitted.

2

81.4

79.2

Nitrogenoxide (NOx)200Air emissions

92.7

60

• Improving building and equipment efficiency andensuring that manufacturing tools optimize efficiency.
• Limiting the use of stationary combustion engines
such as diesel generators.
TI no longer uses the following Class I and Class II
ozone-depleting substances in manufacturing:• Class I compounds include fully halogenatedchlorofluorocarbons, halons and substancesthat harm the ozone layer.
• Class II substances are known or expected to have
harmful effects on the stratospheric ozone layer.

Regulations and reporting
TI’s operations produce varying quantities of air emissions2,
some of which are subject to regulatory limits or are required tobe calculated and reported, depending on the country, state, ormunicipality in which we operate.

2015

2016

2017

2018

2019

Greenhouse gases (GHGs)
We understand the importance of addressing and responding
to climate change. Setting realistic GHG emission and energyreduction goals and regularly assessing potential risks related toclimate change that may affect the company over the long term
makes TI more efficient and competitive.
Total GHGs
2.5
Million metric tons of CO2

Sustainability

87.7

94.5 96.6

40

ENVIRONMENTAL IMPACT
TI is committed to doing its part to reduce the environmental
impact of our operations. Our company designs, manufactures,assembles and tests billions of integrated circuits each year.
Globally, our operations require the use of raw materials, chemicals,
energy and water. To responsibly conserve natural resources andprotect the environment, we set voluntary reduction goals, invest
in new abatement technologies, and reuse and recycle water when
feasible. We also comply with laws and regulations in locations
where we operate.

95.8

80

TI at a glance
Our commitment andreport overview

89.6

105.1

2.40

2.39

2.41
2.26
2.03

2.0
1.5
1.0
0.5
0.0

2015

2016

2017

2018

2019

TI does not include nitrous oxide (N2O) in its air emissions calculations because the company accounts for N2O in its GHG emissions data.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

7

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

3

TI focuses its GHG emission-reduction efforts on Scope 1 and 2
GHG emissions. We have not fully evaluated all relevant Scope
3 emissions due to complexities associated with our supply
chain, number of employees, diversity of locations and broad
distribution network.
• Scope 1
Direct GHG emissions that TI generates from its
fabrication, assembly/test, and large design and sales
locations. We mitigate these emissions by:− Installing efficient manufacturing technologies.
− Eliminating nonessential fluorinated gases, using
alternative gases and reusing gases.
− Installing thermal point-of-use abatement
devices that treat the exhaust of gases used insemiconductor manufacturing.
• Scope 2
Indirect GHG emissions created by electricity, heat andsteam that TI purchases for its manufacturing or otheroperations. We mitigate these emissions by:− Optimizing the efficiency of our manufacturingsystems, buildings and tools.
− Using renewable energy sources when feasible.

2015

2016

2017

2018

2019

Carbon dioxide (CO2 )75,84874,86273,68076,72378,571

Methane (CH4 )

1,203

1,192

1,192

1,244

1,251

Nitrous oxide (N2O)

21,27420,80820,93924,50923,512

Hydrofluorocarbons (HFCs)

41,64636,36742,06039,97636,553

Perfluorocarbons (PFCs)

810,687

819,753

870,984

855,646

697,120

Sulfur hexafluoride (SF6 )45,14752,46459,802

65,91154,645

Nitrogen trifluoride (NF3)89,81771,501

92,99993,53974,927(metric tons of CO2 equivalent)• Scope 3
Indirect GHG emissions generated by our supply chain,
employee travel and commuting, or our distribution
network. We mitigate these emissions by:− Offering video conferencing to limit business travel.
− Providing electric vehicle charging stations, oncampus shuttles and flexible work schedules, andsubsidizing mass transit and carpooling at selectsites.
− Shipping products in bulk and distributing fromregional centers.

Indirect (scope 2) and Direct (scope 1) GHGs
1.5

Million metric tons of CO2

Types of GHGs and reduction strategies

Scope 1 GHGs by type

Indirect (scope 2) GHGs
1.32

0.9

Direct (scope 1) GHGs

1.31
1.25

1.2
1.08

1.07

1.16

1.15
1.11

1.06
0.96

2015

2016

2017

2018

2019

Normalized GHG emissions per chip
0.6
.52

TI’s carbon footprint
Advancement in the size of wafers (which yields more chips perwafer), the efficiency of semiconductor manufacturing machinery,
and the reduction of chemicals have helped TI reduce normalized3
GHG emissions since 2005 – despite an increase in production.
Changes in normalized GHG emissions per chip occur due tovariations in chip production, improvements from manufacturing
equipment upgrades and energy emissions improvements. In 2019,
TI reduced total GHG emissions by more than 10%.

.51

0.5

.43

0.4
2005 = 1

Goal
We set a five-year goal in 2015 to reduce absolute Scope
1 and 2 GHG emissions by 15% by the end of 2020. By
year-end 2019, absolute emissions were down 15.6% due
to improved efficiency and our commitment to investing in
projects that reduce emissions. We will continue to monitor
our progress as manufacturing has increased in the first halfof 2020. We will report the outcome in our 2020 Citizenship
Report.

.37

.36

2018

2019

0.3
0.2
0.1
0.0

2015

2016

2017

Normalized data is a way to develop a baseline and track changes in a metric year over year.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

8

Driving efficiency in wafer production
TI continuously looks for ways to make its fabrication
processes more efficient and cost-effective. We optimize
older facilities by retrofitting lighting and upgrading
equipment to reduce energy use and GHG emissions.
We design new buildings to use fewer natural resourcesand electricity from the start, which reduces environmental
impacts and operating costs.
Most of the GHGs that TI emits are fluorinated gases needed
to produce silicon wafers and keep equipment clean. Our
older 150- and 200-mm wafer fabrication plants use fluorine
gases that generate more GHGs than modern factories.
Our newer 300-mm fabs use a fluorinated gas that is a lesspotent GHG. Additionally, the larger 300-mm wafers produce
more chips per wafer, which requires less water and energy
and reduces production costs.
Other Other

300-mm advanced analog fabrication plant in Richardson,
Texas. We expect that these changes will improve ourenvironmental and financial performance. Moving production
from 200 mm to the more efficient 300 mm reduces energy
consumption per chip by approximately 56% and water
consumption by about 21%.
Normalized
Normalizedenergyenergyintensity
intensity
120
120
100
100

Normalized
Normalized
water
water
intensity
intensity
120
120

100.0
100.0

100
100

100.0
100.0

Embedded
Embedded
AnalogAnalog

Ent

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Ent

8080

6060

79.0
79.0

Biodiversity(Water/chip)(Water/chip)

Other Other(Energy/chip)(Energy/chip)

Table of contents

8080

6060

44.2
44.2

4040

4040

Comm Comm

In the next few years, we plan to close two older
manufacturing facilities – in Sherman, Texas, and Dallas,
Texas – and we have construction underway on a new

Auto Auto
Personal
Personal

2020

2020

Industrial
Industrial

0 0
Avg.
Avg.
200-mm
200-mmfabfab

RFAB
RFAB

0 0
Avg.
Avg.
200-mm
200-mmfabfabRFAB
RFAB

Other Other
Ent

Ent

Comm Comm

Monitoring potential risks

Auto Auto
Personal
Personal
Industrial
Industrial

TI faces potential regulatory and physical risks associated withclimate change. Currently, we do not believe that these risks havethe potential to generate a substantive change in our business
operations, revenue or expenditures. However, to ensure that wereact appropriately and maintain our commitment to environmental
stewardship, we closely track:• Global trends in environmental and energy policy.
• Changes in regulations that may apply to TI or its suppliers.
We work with industry associations to provide context
and perspective on the potential impact of legislative andregulatory proposals.
• Extreme weather events such as typhoons, hurricanes anddroughts. In any natural or human-caused disaster, our priorities
are to protect our people, assets, revenue and reputation.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Creating a better world through semiconductors
Smart grids, enabled by TI technology, are reducing costs,
saving energy, and improving how energy demand ismonitored and managed, thus reducing GHG emissions.
Utilities can use smart electrical meters to adjust
thermostats; appliance usage; and heating, ventilation andair-conditioning settings in homes and businesses to avoid
rolling brownouts or charging peak rates. Customers who use
TI’s GHG-reducing technologies include electricity providers,
distributors, manufacturers of white goods (appliances) andthe transportation industry.

Regulations, compliance and reporting
We comply with GHG regulations that vary by country, state andmunicipality, and report emissions to relevant agencies. We are
required to report U.S. GHG emissions to the EPA to comply
with its mandatory reporting requirements. The EPA requires thesemiconductor industry (among other industries) to measure
and report annual fluorinated GHG emissions (such as sulfur
hexafluoride, perfluorocarbons and hydrochlorofluorocarbons) as
well as GHG emissions from combustion sources.

Our worldwide semiconductor design, manufacturing, assembly
and test sites are located in industrial areas, inner-city areasand suburban areas, as well as areas surrounded by agricultural
farmlands. We adhere to rigorous air emission, water andwastewater goals and requirements to manage our impact on
biodiversity near our sites. We contribute to biodiversity byplanting indigenous trees where we have sites and participating incommunity cleanup events in locations around the world.
For example, when two large storms affected TI’s North Texas
campuses in 2019, the company acted quickly to plant new trees.
Teams planted more than 600 vitex, crape myrtle, chinkapin oak,pond cypress and live oak trees at our Dallas site, replacing morethan 250 mature native trees we lost. Not only will these trees makeour campuses beautiful for years to come, but they will help reduce
GHGs, improve air quality and control soil erosion in areas where
natural storm runoff occurs after it rains.

We also voluntarily report our GHG data to the World
Semiconductor Council (as part of the U.S. industry report), the
CDP (formerly the Carbon Disclosure Project), the S&P Global
Assessment, in addition to this report.

9Energy use
Reducing our overall energy consumption is a focus in our global
operations, both in our manufacturing and design sites. Our sites
are required to set annual energy reduction goals to lower costs
and emit fewer GHGs.
Our manufacturing operations account for about 90% of our totalenergy use and are the focal point for our global energy strategy,
which includes:• Securing reliable, affordable and renewable energy supplies.
• Building and retrofitting buildings and factories to optimize
efficiency and using more efficient equipment.

TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices

Total energy use
12
10

10.01

10.11

10.35

10.21

2015

2016

2017

2018

2019

8
6
4

Workplace2

Giving and volunteering

0

Global Reporting
Initiative index

10.07

2015

2016

2017

2018

2019

Savings (MMBtu)

283,234

321,177

285,556

254,121251,198

Energy use (total MMBtu)

10,070,708

10,017,419

10,116,022

10,357,182

10,216,767

Indirect energy use (total)

8,620,386

8,588,300

8,691,304

8,875,461

8,749,565

Electricity

8,567,814

8,534,080

8,635,917

8,823,520

8,701,606

District heating

52,57254,22055,38751,941

47,959Direct energy use (total)

1,450,322

1,429,119

1,424,718

1,481,721

1,467,202

Natural gas

1,259,187

1,245,657

1,244,765

1,298,268

1,285,129

Fuel oil (No. 6)

73,17972,243

192,216

12,795

12,435

Diesel

50,201

46,84240,00044,65533,158Propane65,166

61,7901,180,646

123,407

133,858

Gasoline

2,589

2,586

2,667

2,596

2,622

(million million British thermal units)$34.4 million in utility cost savings since 2015
Each year, we implement more than 200 efficiency projects
that reduce our GHGs and collectively save an average ofmore than $6.5 million in energy costs. Since 2015, TI has
conserved 1,395,286 million British thermal units (MMBtu)
of energy – the equivalent of powering more than 37,000
homes for a year. During that same time, we implemented
more than 1,400 efficiency projects that saved $34.4 million
in utility costs.
Energy conservation projects

Energy utility cost savings

400

10

$6.80

$6.90

6

Renewable energy use

367

1.5

300

$5.20

4

NumberMillions

$7.20

250

270

286

2016

2017

2018

2019

1.2

150

2015

2016

2017

2018

2019

0.9

9

.70
0.6

8.2%

6

0.3

0

4

14.0%

12

200

0

14.9%

1.2

213

50
2015

Percent of renewableelectrical energy used
15

1.3

267

100

2
0

TI secures reliable and affordable energy supplies, which includes
renewable4 resources where available and cost-effective. We
use direct contractual arrangements for renewables that play arole in reducing our energy consumption in some locations, andwe continue to actively look for opportunities to invest in more
renewables as they make sense for our business. In 2019, TI’s
use of renewable energy declined slightly as off-site renewable
power that supplies two of our sites experienced severe weather
disruptions. Conventional grid energy supplied these sites until therenewable power came back online.

350

$8.30
8

Renewable energy

Million MMbtu

CEO letter

Million MMBtu

Table of contents• Designing and manufacturing semiconductor products thatenable energy-efficient electronics, and investing in R&D tofurther reduce energy consumption. We also stack chips verticallyin our product packaging, which reduces motherboard space andtotal energy and cooling costs in our customers’ end products.

Energy use by type

3

2017

2018

2019

0

2017

2018

2019

 o global standard exists for calculating renewable energy that includes power purchased from mixed-generation suppliers or the grid in the geographic regions in which we operate. We stopped attempting to estimate the renewable energy portion of purchased mixed-generation power after 2014 and will not report this incidental renewable energy use until there is a consistentN
standard or we receive more accurate information from suppliers. The data reported in 2017, 2018 and 2019 are for the portion of the energy supplied in a traceable way via a contract or government-managed tracking system.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

10

Energy intensity
We measure energy intensity to assess the overall efficiency of ourmanufacturing processes. Energy use refers to the total energy
used, which depends on production. Energy intensity is an attempt
to normalize usage by looking at energy per unit of output (bydividing our total energy use by our total production).5
Since 2005, we have reduced per-chip energy intensity6 from 1.0
to 0.38 globally – a reduction of 62%. In the U.S., we have reduced
energy intensity by 36.5% since 2010 in our quest to achieve theU.S. Department of Energy’s Better Buildings, Better Plants
program goal to reduce energy levels at manufacturing sites by
50% by 2020.

0.5

CEO letter

Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

.38

2016

2017

2018

2019

Total gallons
Municipal
Reused
Well
Rain7

6,837
4,493
1,986
320
37

6,724
4,275
2,092
356
22

6,657
4,207
2,032
395
23

6,812
4,360
2,016
401
35

6,356
4,294
1,690
372
0

and monitoring chemicals that have the potential to affect water
quality. As a requirement of our environmental, safety and health(ESH) management system, which is certified to ISO 14001, eachof our sites evaluate water risks – such as availability, quality andgroundwater impacts – in an annual assessment.
Specific actions we take to conserve water globally include:

.45

0.4
2005 = 1

TI at a glance

.46

2015

(million gallons)

.35

.38

• Installing water recirculation units on thermal processing
equipment to reduce the use of city water.

0.2
0.1

• Implementing tool optimization and water-purification plant
projects that conserve water.

0.0• Maximizing the amount of condensate and microfiltration water
directed to cooling towers.

2016

2017

2018

• Manufacturing – used to rinse wafers after chemical processing
or for other fabrication processes.
• Manufacturing support – used in exhaust abatement andcooling systems.

Wastewater discharges total and by type

• Controlling water alkalinity (pH) in cooling towers to prevent
calcium buildup and scaling, saving money and consuming lesswater to flush mineral-concentrated water.

0.3

2015

• Nonmanufacturing – used in restrooms, irrigation, drinking
fountains and cafeterias.

2019

Giving and volunteering

Compliance and reporting• Reusing water with high salt/mineral content (produced as a
byproduct of our ultra-pure water system) for toilet flushing.

Global Reporting
Initiative index

The countries where we operate require our compliance withapplicable energy use and building codes. We voluntarily report ourenergy consumption data to the CDP and in this report each year.

• Reusing water in our central utility plant cooling towers to reduce
the amount of water we need from lakes, groundwater or othernatural sources.

Water and wastewater management

Most of the wastewater generated by TI is treated on-site to
reduce contaminants. We collect any wastewater sludge containing
solvents, concentrated metals and acid solutions and disposeof them off-site per regulatory requirements. In some cases, wesend these compounds to reclamation facilities for their reuse byother industries.

Water is an essential part of manufacturing semiconductors, which
is why we use it responsibly and efficiently. Conserving waterand protecting water quality enables us to reduce costs, comply
with regulations, ensure long-term availability and preserve thisnatural resource.

How we manage
TI’s water conservation and protection strategies include investingin reduction, recycling and reuse projects, and restricting, reducing

5
4.4
4Billion gallons

Table of contents

Normalized energy per chip

Water sources total and by typeSurface
4.1

4.0

4.0

3.8

4.1

3.8

3.8

3.8

Municipal
sewer
Wastewater
discharge

3.6

3
2
1
0.31
0

2015

0.27
2016

0.22
2017

0.28
2018

0.25
2019

Reuse and recycling
We reuse water in other processes where possible, such as cooling
towers, scrubbers and irrigation. For example, many of our cooling
towers reuse water from the manufacturing process to reduce or
eliminate the amount of city water they need to operate.
TI reused more than a quarter of the water usedon-site in 2019.

Water sources
Our water sources include surface water from local municipal
supplies, collected rainwater and groundwater. Our water footprintcomprises three types of water:

Changes in normalized energy per chip occur due to variations in chip production, improvements from manufacturing equipment upgrades and energy emissions improvements.
Primary energy consumed per pattern produced by our U.S. manufacturing facilities, normalized for 80% loadings and compared to a 2010 baseline. Primary energy is energy content found in natural sources that has not been subject to any conversion or transformation process. Adjusted for startup and closure of facilities.
7
In 2019, we elected to not report rain water collection as the total was not directly measured. Previously reported values were estimates based on regional rainfall data and capture area.
5
6

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

11

Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Water availability
We monitor future water availability issues for all sites, specificallythose in North America and Asia. We also work with country,
regional and local agencies; suppliers; and local water utility
management and operations teams to discuss emerging risks andpossible mitigation plans. For example, at our Texas sites, whichmake up the largest concentration of our operations, we engage
with the Texas Water Development Board and participate in its
water use survey activities. This engagement enables us to help
shape the community’s water supply in the future, and prepare ouroperations for future water availability issues or changes to ourwater management strategy.

Reporting
Each year, we voluntarily report our water footprint to the CDP andin this report. We compile the data that we report from quantities
billed by municipal suppliers as well as our own production metrics.

• An ultrafiltration recovery device that recycles treatedwastewater, saving about 14.3 million gallons per year.

6
4
2

577

5
4

5%

5%

3

4%
2

6.1

4%

212
4%
4%

1

0
6.0
2015
2015 20162016 20172017 20182018 20192019

0

Water utility savings

Normalized water
use per chip

4.0 $3.9
3.5

0.6

$3.3

$1.71 $1.80

1.5

0.53
0.42

0.45

0.4
0.3
0.2

$0.80
0.1

0.5
2015 2016 2017 2018 2019

Water
consumption
Conservation
projects
Municipal + reused + well
6.79
6.8 150

120

6.6

6.77

1276.72
123
6.63

7
10
6
5

76

6.4

60

0.0

76

2015 2016 2017 2018 2019

Water use
Savings
from conservation
projects
12 12% 12%

6.5 90

6.3

0.56

0.44

2.0

6.7

2.5%
121
2.2%

0.5

2.5

0.0

249

0
20152015
20162016
20172017
20182018
20192019

3.0

TI’s water conservation efforts

In 2019, overall water use was down due to fabricating fewer
semiconductors, which resulted in a slight increase in our per-chipwater use. We also set a goal to reduce water use by 2.2% in 2019,
which we exceeded by conserving 2.5%.

72
6.35

8

Million gallons

76

6.2
30

72

6.35

3
2

6.1

1

0
20152015
20162016
20172017
20182018
20192019

602

Result
Goal

577

8

46

6.2 30

6.0

8

76

1.0

Since 2015, TI has implemented 474 conservation projects thatsaved $11.5 million in utility costs and more than 33.3 billion gallons
of water – enough to fill more than 55,000 Olympic-sized swimming
pools. Previously completed efficiency projects have enabled TI toreap continued water utility savings.8% Reduction

90
6.5
6.4
60
6.3

602

6

2005 = 1

TI at a glance• A pure water reverse-osmosis concentrated water recovery
device that recycles concentrated water, recovering about
50% of it for reuse.

6.63

ResultGoal

7

10Million gallons% Reduction

CEO letter• An instrument-sampling water recovery system that saves
about 2.6 million gallons of water annually.

6.72
123

6.7 127120
6.6

NumberTable of contents

We conduct periodic water sampling to ensure that we areoperating within our permit limits. We take additional precautions
at sites in Malaysia, the Philippines and Japan because treatedwastewater discharges directly into a body of water in thesecountries instead of to a municipal treatment facility.

• A pure water ultrafiltration concentrated water recovery
device that reprocesses concentrated water from theoriginal ultrapure water system, saving an estimated 5
million gallons annually.

Water
use from conservation
Savings
12% 12%12projects

6.77

NumberBillion gallons

Regulations require the restriction or removal of substances suchas metals, toxic organic compounds, nitrates and sulfides fromwater before discharge. TI also has internal standards, programs
and procedures in place to ensure that stormwater runoff at all sites
complies with local and national discharge requirements.

150
6.8 6.79

Millions $Our water management standard establishes minimum
expectations for water, wastewater, and stormwater quality andmanagement. All TI wastewater treatment plants are permitted
where required to meet applicable regulatory requirements andensure that discharges meet local, state and/or country-level
wastewater discharge requirements.

TI Chengdu recognized for water conservation
The Chengdu City Water Conservation Office andSichuan Housing and Urban-Rural Bureau recognized TI’s
fabrication site in Chengdu, China, for its water conservation
practices, which have saved millions of gallons eachyear. TI ESH personnel in Chengdu set annual reduction
goals and monitor water use daily to prevent fluctuations.
They also implemented water projects to curtail use or
recycle water, including:

Water consumption
Conservation
projects
Municipal + reused + well

Billion gallons

Water quality

5%

4
4%
2

00

4%

212
4%

5%
249

4%

2.5%
121
2.2%

2015 20162016 20172017 20182018 2019
2019
2015

To calculate water use, we compile data from quantities billed by municipal suppliers as well as our production metrics. We also measure effluent rates and volumes and analyze industrial wastewater and stormwater samples using standard methodologies set by the EPA.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

12

Water use

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2018

2019

Change in water storage (megaliters)900Water withdrawal (total megaliters)
Surface10
Ground10
Sea
Produced
Third party

18,155
132
1,517
0
0
16,506

17,66401,409
00
16,255

Fresh (≤1,000 mg/L total dissolved solids)

18,155

17,664

Other (≤1,000 mg/L total dissolved solids)

00Water withdrawal in water-stressed regions(total megaliters)
Surface10
Ground10
Sea
Produced
Third party

3,352
0
40
0
0
3,312

2,674
0
44
0
0
2,630

Fresh (≤1,000 mg/L total dissolved solids)10

3,352

2,674

Other (≤1,000 mg/L total dissolved solids)100015,6431,068
0
0
14,575

14,617953
0
0
13,664

Water discharge (total megaliters)
Surface10
Ground10
Sea
Third party

Cities from Austin, Texas, to Antwerp, Belgium areinstalling high-tech smart water meters that give
consumers the information they need to find leaks
and conserve water, while helping utilities identify
infrastructure leaks in aging pipes and broken water
mains. TI’s advanced flow metering microcontroller, theMSP430FR6043, significantly improves accuracy while
reducing overall cost and power consumption.

Environmental, safety and health
Our Environmental, Safety and Health (ESH) team is
responsible for:• Operational decisions and investments to control potential
environmental impacts and maintain a safe and healthy
working environment.
• Conserving natural resources.
• Assessing and reducing ESH risks.
• Driving continuous improvement.

11

Fresh (≤1,000 mg/L total dissolved solids)

Unknown Unknown• Meeting or exceeding compliance obligations.

Other (≤1,000 mg/L total dissolved solids)11

Unknown Unknown• Setting site-specific conservation and efficiency goals andinitiatives, and tracking and reporting these goals to seniorleaders quarterly.

Water discharge (water-stressed areas,
megaliters)

9

A new metering technology helps make every drop countTI technologies can help conserve one of our mostprecious resources – water. According to the EPA,
household leaks waste about 900 billion gallons of watereach year in the U.S. Ultrasonic technology enabled by
TI products gives water meters the ability to locate leaks
as small as one drop every few seconds, enabling early
detection and reducing water waste.

2,860

2,278

Fresh (≤1,000 mg/L total dissolved solids)11

Unknown Unknown

Other (≤1,000 mg/L total dissolved solids)11

Unknown Unknown

Water consumption (total megaliters)12

2,512

3,047

Water consumption (water-stressed areas)12

491

396

Our ESH management system contains rigorous programs, policies,
personnel, controls, processes and measurement tools that are
based on industry best practices and international standards.
This system helps us mitigate ESH risks, improve our performance,
fulfill compliance obligations and achieve our objectives.

All TI sites meet the certification requirements set by International
Organization for Standardization (ISO) 14001 environmental
management system criteria, as well as those set by ISO 45001 forthe management of occupational health and safety.
Additionally:• To guide our efforts to operate sustainably, we require employees
and supplemental contractors at all manufacturing and assembly/
test sites to adhere to our ESH Policy and Principles as well as toapplicable regulatory requirements.
• Our Living our values – TI’s Ambitions, Values and Code of
Conduct includes sections on protecting human health and theenvironment.
• TI and its suppliers are expected to comply with the
Responsible Business Alliance (RBA) Code of Conduct,
which contains ESH standards.
Our ESH policy is available in multiple languages:
English | Traditional Chinese | Simplified Chinese | Japanese| Malay | Spanish | German | Korean

There is a small amount of water storage (relative to overall usage) in facilities systems, but the year-over-year change is not significant.

10This does not include once-through cooling water, which is pumped from on-site wells at our Freising, Germany, site and used only for heat rejection. This water returns to the original aquifer. Collected rainwater is used for irrigation and not reported as part of our water use totals, except for a small quantity reported on the rain source line for our Richardson, Texas, fabrication facility before 2019.

11

TI does not monitor total dissolved solids continuously at all sites.

12

Calculated as water withdrawn minus water discharged.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

13

We also routinely evaluate customer quality data, develop
quality improvement plans and conduct quarterly internal quality
audits to make sure that our products are long-lasting.
We continue to sell our products until our inventory is depleted
or technological or efficiency updates are warranted. To
discontinue a particular product, three conditions must
simultaneously exist:• The product has had no sales for the last five years (sevenyears for automotive or high-reliability products).
• Has been in production for at least 10 years.
• There is no current customer demand.

Table of contentsRESPONSIBLE MANUFACTURING AND DISTRIBUTION

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices

We design and manufacture products that help solve some of theworld’s toughest challenges and create a better world. Sustainable
technology design and production is an opportunity for ourcompany and our customers to help dozens of industries maketheir products safer; smarter; and more affordable, energy-efficientand reliable, all while consuming less power.

Workplace

Semiconductors

Giving and volunteering

About 80% of our wafers are manufactured in-house, at 14
manufacturing sites across eight countries. We have complemented
our manufacturing capability by forming strong partnerships
with external foundries and subcontractors so that we can scale
production to meet customer demand. This flexibility enables us
to help ensure continuity of supply for the approximately 100,000
customers we support.

Global Reporting
Initiative index

One of our competitive advantages is our large and robust
manufacturing footprint, and our shift from 150- to 200-mm
wafer production to more advanced and cost-effective 300-mm
technology. Making 300-mm wafers enables the production of
more chips per wafer while reducing manufacturing costs, resource
consumption and environmental impacts.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Quality
Having in-house manufacturing capability enables us to moreclosely control the quality of our products by monitoring andregulating the materials we purchase for product development aswell as the fabrication process itself. Our Quality System Manual
describes our management process and systems, quality policies,
and procedures so that we can quickly address and resolve qualityrelated issues. Our quality standards maintain compliance withnumerous quality specifications and the latest industry standards.

Reliability
The average life span of a semiconductor used under normal
circumstances is 10 to 15 years. Our reliability testing includes
stress and temperature tests, during which we apply heat, vibrationand other factors that accelerate potential failure mechanisms.
These tests help us identify the root cause of such failures andimprove the design of integrated circuits before selling themto our customers. Our product designs, processes, products
and packages must also meet industry reliability standards
before release.

We notify customers of pending discontinued products so thatthey can determine whether they wish to purchase and store
them for future use.

End-of-life disposal
We give customers detailed information about the substancesused in our components so that they can make informed
decisions about end-of-life disposal. Customers can
incorporate our component compliance data into their productassessments because they are ultimately responsible formanaging any social or environmental impacts that result fromthe useful life and disposal of end products, such as cellphones
or computers. This data is available through our material
content tool.

Education technology
We outsource the manufacturing of our education technology
calculator products, which are used by educators and students
worldwide. We develop these products with concern for theirenvironmental impact, including the type of materials used intheir design, packaging and waste, as well as the products’ life
cycle. We also require suppliers and contractors to comply withapplicable ESH and quality laws and regulations, as well as our own
standards, to ensure the responsible manufacturing of our handheld
graphing calculators.

We regularly make changes to comply with industry standards.

14

Reducing waste in Education Technology products

Packing

We reduce waste by designing Education Technology products withflash technology, which enables consumers to download software
applications, extending the products’ life span and long-term value.
We also design our calculators to withstand years of classroom use.
We continue to recycle more electronic waste and have diverted
258,367 pounds from landfills since 2015.

We pack our products efficiently to assure timely distribution tocustomers and compliance with international shipping regulations.
For example, we:

Waste generated from Education Technology products
81.9
Thousand pounds

80

CEO letter• Reuse packing materials that protect products
during shipment.

62.9
60
42.0

40

37.7

33.6

20

TI at a glance0

Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2015• Increase packing density to move actual weights closer
to charged dimensional weights.
• Eliminate heavy and expensive custom-cut foam,
nonrecyclable foam, and foam and cardboard waste.

100

Table of contents• Pack large quantities of products into each shipment toeliminate multiple deliveries.

2016

2017

2018

2019

Packing and shipping
TI is committed to packing and distributing all of its products in themost environmentally responsible way.

Shipping
We strategically place our distribution centers in regions close tocustomers in order to accelerate delivery times, be more efficient,and facilitate product deliveries in the event of a natural or humancaused disaster. We work with our customers to determine when
they need our products so that we ship at the right time and in bulk
when possible. This practice enables us to ship mutually agreedupon low-priority freight when space becomes available on more
affordable shipping options.

In Japan, we use the Multipak packing system, which enables
customers to return the entire box and shipping materials to athird party that certifies the packing for reuse. If the materials
do not pass inspection, they are recycled.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

15

company. If we believe that a chemical or material is necessary for
manufacturing but still raises concerns, our manufacturing leaders
review the issue and, if necessary, authorize additional time andresources to seek a safer alternative or implement more stringent
use controls.

Stringent management of chemicals
required for manufacturing
Producing world-class semiconductors involves the use ofhazardous and nonhazardous chemicals and gases, which is why
we have stringent controls in place. We also continually assess
the potential ESH impacts of these materials as new scientificinformation becomes available and new regulations go into effect.

Table of contents

MATERIALS MANAGEMENT

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

TI makes every effort to purchase only what is necessary to run its
business and to recycle, reuse or sell scrap and waste materials
such as shipping materials or chemicals.
We apply a three-step approach to material management:
Step 1: Examine what we need.
Most of the materials we need are used to fabricate
semiconductors and are present in our final products.
When purchasing materials, we consider the resulting waste
and whether an opportunity exists to reuse existing materials
or purchase recycled materials or environmentally friendly
items instead.
Step 2: Reuse what we can.
We reuse materials by:• Recovering metals from solids, liquids and sludge.
• Repurposing and reselling used process chemicals,
chemical containers and older manufacturing equipment.
• Reusing wafer carriers and food service tableware.
• Donating wafer fabrication shoes to local nonprofits.
Step 3: Recycle what is allowed.
Our recyclable material comes primarily from our offices andmanufacturing sites and is managed and regulated differently
depending on local requirements.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

TI strives for zero wasted resources at all of its sites, and believes
in responsibly managing material use and disposal. We do this byreusing, recycling or reselling materials we no longer need (suchas scrap material) and items that can be reused or resold (such as
some chemicals). This practice helps protect the environment andreduce the amount of material sent to landfills.
We also educate our employees about the importance of doing
their part to reduce waste. Depending on the site, ESH personnel
may spearhead recycling drives, promote the composting of foodscraps or encourage other waste management practices. While ourprograms and infrastructure vary by location, our commitment tozero waste remains the same.

Screening materials
We screen all incoming materials and chemicals before
incorporating them into our semiconductor manufacturing
processes to comply with both regulatory and customer
requirements. In addition to any ESH controls required for their use,
we incorporate restrictions and standards related to chemicals in
our contracts with suppliers.
If concerns about a chemical or other material arise during ourscreening process, we elevate the matter to an internal chemical
and material review board staffed by experts throughout the

We are committed to identifying and using the safest, lowest-riskmaterials in our operations and have strict standards and protocols
for purchasing, tracking the use of and disposing surplus waste
chemicals. We push these standards up our supply chain andrestrict our suppliers from using certain chemicals and materials.
Click here for a list of chemicals and materials TI restricts.
The European Union (EU), China and other governments havestringent laws and regulations for product content and have bannedsome chemicals altogether.
Our product management systems control the materials used in
our products and we make that data and information available toour customers so that their end products remain compliant withapplicable standards. Key laws and regulations include:• R estriction of Hazardous Substances Directive (RoHS)
TI provides information that enables customers toprove that their products containing TI parts are
RoHS-compliant.
• R egulation on Registration, Evaluation, Authorization
and Restriction of Chemicals (REACH)
We make information available to customers regarding
REACH “substances of very high concern” as they relate
to our products.
• C hina Management Methods for Controlling Pollution
by Electronic Information Products (China RoHS)
Although our components are not subject to China
RoHS, our shipping labels do contain analytical data
and bill-of-materials information to help our customers
maintain compliance.
16

What does green mean to TI?
We define green to mean “Pb-free; RoHS-compliant; andfree of chlorine, bromine and antimony trioxide-based ﬂame
retardants.” More than 90% of the semiconductor products
we ship are considered green and meet low-halogen industry
requirements. For more information, see our Our Halogens,
Chlorine and Bromine: Concentration in TI’s Green Devices
document and our Eco-Info website.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Brominated and chlorinated flame retardants
One of the challenges facing TI and the electronics industry is
how to reduce or eliminate the use of brominated flame retardants(BFRs) and chlorinated flame retardants (CFRs), which are integral
to semiconductor packaging materials. While BFRs and CFRs
contained in products pose no risk as sold, their improper or unsafe
disposal is of concern. We removed these materials from 90% to
95% of our products during the conversion to Pb-free and RoHS
compliance before they became an industry concern.
Our Pb-free and RoHS-compliant devices also meet globallydefined restrictions in the Global Automotive Declarable Substance
List and the International Electrotechnical Commission 62474
database (formerly the Joint Industry Guide, JIG-101). Our products
listed as green go beyond these types of regulatory requirement
lists and include compliance with low-halogen efforts.

TI’s material use

12

Recycled

11.03

Disposed

9.53

9.08

6

2.69

2015

2.31

2016

2017

2.87

2018

2019

Waste by type
30

26.7
24.4

25
21.4

15

Hazardous

25.3

Nonhazardous

20.7

20

12.1

12.3

11.4

11.9

10.5

10

0

2015

2016

2017

Waste generated
4036.72 37.19 37.27

2016

2017

0.85
2018

2018

0.6

32.12
0.5

25

0.4

20
15

2019

Normalized waste
use per chip

30

0.3

0.51

0.49

0.46

0.31

0.34

0.2

10

0

2.69
1.09

2015

3.00

2.60

0.1

5

4

0

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

11.20

8

2

0

35 33.44

Nonhazardous waste

9.77

2.67

5

In 2019, TI generated fewer tons of waste overall, although
our waste-per-chip increased due to lower wafer production.
We generated slightly more hazardous waste, consisting
primarily of process chemicals, which we sell for reuse in otherindustries. We were unable to sell a portion of this waste, so we
disposed it in accordance with hazardous waste regulations.

10

Recycled

17.99

10
5

We continually work within the industry to assess the types ofnanosized chemicals and substances that we can use in our
products. We are actively involved with research groups to evaluate
the use of nanomaterials for specific functions, such as catalysts,
lubricants, paints or coatings. Currently, we only embed nanoscalefeatures and structures within select semiconductors. We areworking with industry partners to study these materials further tounderstand potential ESH impacts better, and to ensure that ourmanagement systems provide appropriate controls and protections
should they be necessary.

Thousand metric tons

Table of contentsLong before laws and regulations sought to phase out the use oflead in various products, TI led the industry in developing lead (Pb)free alternatives. Although most customers have shifted to usingPb-free products, we continue to manufacture a few that containlead for those who require it. These products are usually outside thescope of RoHS requirements.

18.68

Disposed

15

Nanomaterials

Thousand metric tons

Lead

20

23.87

22.31

21.83

Thousand metric tons

When we must use chemicals, we carefully manage their transport,
distribution, use and disposal. We do this by training personnel on
hazards and proper chemical use, storage and disposal. We alsouse ventilation controls, abatement systems, leak detectors andappropriate treatment technologies.

25

2005 = 1

Regulatory authorities in each of TI’s operating regions classify
industrial waste (primarily chemicals) originating from manufacturing
operations. Where possible, we use high-pressure water instead ofchemicals in certain cleanup applications or replace chemicals withenvironmentally benign substitutes.

Hazardous waste

Thousand metric tons

Managing industrial waste

2015 2016 2017 2018 20190.0

2015 2016 2017 2018 2019

1.01
2019

17

Board members(by age)30-60 years
60+ years

40%

Board memb60%

(by gender)

GOVERNANCE

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

Responsible
businesspractices40%

Our governance website explains our corporate governancepractices and includes additional detail about our leaders,
governance documents and board committee responsibilities.

Board members (by race)

10%

Black
10%

In our 2019 U.S. Securities and Exchange Commission (SEC) Form
10-K, you will find: Board members

Caucasian(by age)30-60 years• Financial statements. (Part II, Item 8, pages 23-57)
years 38-40)• Taxes paid to governments. (Part II, Item 8, Note60+
4, pages

Hispanic

80%

40%

In our most recent proxy statement, you can read about:• Voting procedures, quorums and attendance. (page 3)• Tenure of board members. (page 5)

60%

Board members(by gender)

Female members• Board attendance at annual meetings. (page 11)• Director independence. (page 11)

Male members
40%

Giving and volunteering• Board evaluation processes. (page 15)

Global Reporting
Initiative index• Director and executive compensation (pages 16-43)
and pay ratios. (page 43)

60%

Board members (by race)• The compensation committee report. (page 31)
10%• The audit committee report. (page 44)

Black

10%

Hispanic• A proposal to ratify the appointment of an independent
registered public accounting firm. (page 44)
Caucasian• The engagement of and fees paid to executive compensation
consultants. (page 14)
80%

Board members(by age)30-60 years
60+ years

40%

About TI’s board of directors
At year-end 2019, TI had a unitary board system with 10 board
members, 90% of whom were independent. The age limit to serveis 70. The graphs below offer additional information about TI’s
board composition in 2019.
2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

60%

Board mem(by gender)

40%

18

Training
We regularly train executives, directors and other employeeswith management responsibilities on how to identify issues that
may have an immediate or future impact. We teach leaders how
to assess and prioritize risks based on the level of severity on
the business, our people or our products. Through workshops
and tabletop exercises, participants apply what they’ve learned
to actual scenarios. We also ask leaders to evaluate and update
contingency strategies based on lessons learned from either real
events or scenario-based exercises.

Emergency response planning

Table of contents
CEO letter

RISK MANAGEMENT AND BUSINESS CONTINUITY

TI at a glance
Our commitment andreport overview

TI’s ability to adapt in an ever-changing world includes managing
business risks and taking advantage of opportunities to achieve its
objectives. Continuity of supply and limiting business interruptions
reassure customers of our reliability and preserve our reputation,
financial position and long-term sustainability.

implement, monitor and maintain protections against businessinterruptions. We also conduct business modeling, scenario andimpact analysis to develop and refine management strategies,
policies and standards, and contingency plans.

Workplace

Understanding our risks

Giving and volunteering

Like any global company, TI continuously monitors and plansfor both unanticipated and emerging operational risks, such as
cyberattacks, natural disasters and extreme weather events,
pandemics, geopolitical issues, social unrest, terrorism or otherhostile acts, or supply-chain or product-distribution delays. We
mitigate disruptions to our business by continuously monitoringthese risks; by developing and modifying plans to address them;and by assessing changes to the global regulatory and politicallandscape, environmental conditions and continuity of supply.

• Critical business processes that make up our operations, as wellas the people accountable for ensuring their viability.

Sustainability
Responsible businesspractices

Global Reporting
Initiative index

Risk management
Planning
TI has a robust business continuity planning management systemand policy that provides the framework to systematically prepare
for and manage risks. Modeled after the ISO 22301 business
continuity management standard, the system helps us plan,2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

This helps us determine:• Possible threats and risks, and whether controls are in place tomanage them.

We activate our emergency response system depending on thenature and severity of an incident. Our Emergency Response
team quickly identifies the appropriate resources, services andinfrastructure required to mitigate potential loss. Each TI site has
emergency response liaisons trained to coordinate efforts locally,or globally if necessary, and deploy the best response strategies.
We also work to provide disaster relief to communities where we
operate when natural and other catastrophes occur.
Our incident command process is modeled after the U.S. National
Incident Management System and is designed to mitigate impacts.
Through detailed risk assessments, we classify risks based on theirseverity. This enables our 24/7 year-round security communication
center to prepare for and deploy resources to ensure the safety ofpeople and the environment, and to reduce operational downtime.
To prepare for unforeseen events, we conduct drills, training,tabletop exercises and site-level exercises.

• Process recovery times to ensure that we respond and recoverefficiently, and with the right resources.
• Contingency strategies for all critical business processes thatpose a high risk to people, our revenue and our reputation.
• Comprehensive recovery strategies to cover all aspects of
response and recovery, prioritizing the continuation of products
and services.
Our Readiness 2 Recover program helps us measure theeffectiveness of and compliance with our own business continuity
management requirements. Every two years (or as needed), we
conduct risk assessments to identify and rectify existing controls
and gaps.
19Expectations of our suppliers
We require that our suppliers demonstrate environmental, socialand governance responsibility in all areas of their operations. We
also expect them to adhere to our standards, to comply with alllaws and regulations, and to achieve and maintain benchmark
levels of performance. To maintain a supply chain that canservice our needs and meet our requirements for sourcing
and human rights, we require all suppliers to adhere to thesegoverning documents:• Living our values – TI’s ambitions, values and code of conduct.
• TI’s Supplier Code of Conduct, based on the Responsible
Business Alliance (RBA) Code of Conduct, which forbids:

Table of contents
CEO letter

SUPPLY CHAIN RESPONSIBILITY

TI at a glance
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TI buys materials – for fabrication processes, factory equipment
and maintenance, logistics services, and nonproduction supplies
and services – from approximately 11,000 suppliers of various
types and sizes. Effective supply chain management enables us
to reduce costs and waste, streamline efficiencies, and increase
our competitiveness. Integrating responsible business practices
into our supply chain also helps mitigate risks in our vendors’
businesses, and in their labor and environmental practices.

Responsible sourcing
We approach our procurement activities in a way that enables us topurchase intelligently and to coordinate buying power globally. Ourworldwide procurement teams oversee various categories of goods
and services, set specific procurement strategies, and identify
qualified suppliers and the best fulfillment methods. For example:• We carefully consider a supplier’s environmental, human rights
and safety record before making purchasing decisions and will
not knowingly engage with a supplier that violates our values,
code of conduct and other governing documents.
• We specify our performance requirements and expectations
in our policies, contracts and purchase orders. Integrating
responsible business practices into our supply chain helps
mitigate risks.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS• We seek suppliers that will create long-term shareholder
value as we aim to scale for growth, reduce costs and waste,
improve efficiency, and develop innovative approaches to
product development.
Additionally, our supply chain management system provides aframework to systematically manage procurement, inventory,
manufacturing, quality and distribution processes. It also helps us
comply with operational and regulatory standards, track costs andmonitor risks. Our management system is certified through:• ISO Quality Management System 9001, which helps businesses
operate efficiently and improves customer satisfaction.
• ISO/Technical Specification 16949, a quality management system
for automotive production and relevant service part organizations.
• International Automotive Task Force 16949, an automotive quality
management system.
We regularly conduct internal audits of our management system
to identify and close gaps. Additionally, the ISO annually
evaluates our procurement management system as part of its
recertification process.

− Forced, bonded (including debt bondage) or indentured labor,
involuntary prison labor, slavery or trafficking or child labor.
− Transporting, harboring, recruiting, transferring or receiving
persons through threat, force, coercion, abduction or fraud forlabor or services.
− Holding worker identity or immigration documents, or charging
fees in exchange for jobs.
− Substandard living and work conditions.
− Excessive work hours.
− Exploitation and discrimination.
• Our Supplier Environmental and Social Responsibility Policy,
which outlines our expectations for ESH protection.
• Our Anti-Human Trafficking Statement, which provides
information about our efforts to eradicate slavery and humantrafficking from our supply chain and business. We do not tolerate
human trafficking of any kind.
• Our Conflict Minerals Policy, which describes our expectations
to avoid sourcing metals for our products from smelters that help
support wars and human rights violations.
• Our General Quality Guidelines, which outline the processes
and systems that support our quality expectations. These
include making sure that direct material suppliers are certified tointernational quality standards.

20• Our ESH Policy and Principles, which outline suppliers’
compliance with applicable regulations and TI ESH policies,
standards and specifications.
Additionally, we require that our suppliers:• Operate in full compliance with the laws and regulations of
the countries in which we do business. While these vary,
suppliers are responsible for monitoring local legislation andensuring compliance.
• Have robust ESH policies and management systems, aswell as methods to identify and control risks and prove
compliance with related laws and regulations.

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CEO letter
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We strive to provide the kind of transparency we expect fromour suppliers. For example:• Our Eco-Info and Pb-Free websites and material
content search enable customers to view materials
contained within our products.
• We provide details about our supplier management
and monitoring programs and disclose our annual
performance in our Anti-Human Trafficking Statement.
• We share findings of the RBA/Global E-Sustainability
Initiative’s Conflict Minerals Reporting Template withcustomers as required.
• We meet with stakeholders to address questions
about our environmental, supplier management andcitizenship activities.

Engagement
When initiating relationships with suppliers, we educate them about
our standards and expectations for safe, humane and ethical labor
practices, as well as human trafficking, forced labor and workers’
rights. We communicate these guidelines in meetings; on our
supplier website; and in purchase orders, supplier contracts andother related documents. We also routinely engage and collaborate

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

with industry groups such as the RBA, the Semiconductor
Industry Association and Semiconductor Equipment and Materials
International to discuss and create supply-chain standards andshare best management practices.

Assessing risks
We continually assess risks to our supply chain, whether
anticipated (such as emerging regulations) or unexpected (suchas natural disasters). We also evaluate suppliers’ financial health,concentration in geographic areas and whether they are singlesource providers. Our objective is to ensure that our procurement
and supplier-management processes are rigorous enough toprevent reputational issues, ordering fulfillment problems, shipping
delays or escalated costs. Therefore, we require that suppliers
maintain an appropriate business continuity plan in the event of abusiness interruption and make the contents of such plans available
to us upon request. We also require that suppliers communicate
with TI and implement their business continuity plan within 24 hoursof a triggering incident to ensure continuity of supply.
Risks that we assess include:• Labor and human rights.

• Conflict minerals.

• Environment, safety
and health.

• Financial health.
• Quality of materials.

• Business ethics.

• Availability of materials andfinished goods.
• Supply management systems.
• Price and trade volatility.
When using labor providers, we require extensive due diligence andconduct interviews with workers to identify possible exploitation.
We also conduct regular audits to evaluate employment contracts,
working hours and dormitory conditions.
We prioritize the examination of suppliers based on spend,
criticality, and products and services provided, as well as theirgeographic location. TI deploys three assessment tools to routinely
evaluate production suppliers, nonproduction providers and onsite suppliers:• Assessments. We investigate the risks and management
systems of prioritized direct material and services suppliers using
the RBA’s self-assessment questionnaire (SAQ) or internallydeveloped assessments that examine demographics andexisting facility policies against sections of the RBA code. The
assessments help identify ethical, environmental and social risks,
including human rights and forced labor.
• Audits. Based on an analysis of the assessments and other risk
factors, we identify suppliers to audit, either by TI or independent
third-party auditors, against the full or targeted sections of the
RBA Code of Conduct. In addition, TI personnel annually conduct
audits of suppliers that operate in high-risk regions identified
by Transparency International’s Corruption Perceptions Index
to measure compliance with labor-related sections of the RBA
Code. This entails on-site inspections; document reviews toensure that suppliers do not impose debts and fees on workers;
worker and management interviews to assess labor conditions,work hours, wages and restrictions on mobility; and inspectionsof dormitories. If TI personnel identify any concerns during thisprocess, our purchasing managers work with the supplier todevelop corrective action plans, which are tracked until closure.
• Supplier performance measurement program. For criticalsuppliers, we include their performance on the assessments
described above in a biannual supplier performancemeasurement program called CETRAQ, which stands for cost,environment and social responsibility, technology and assurance.
The CETRAQ program enables us to:− Identify risks in supply and quality that need review by both TI
and the suppliers’ management team.
− Encourage continuous improvement through regular supplierperformance discussions.
− Review progress toward supplier improvement plans.
To close the annual assessment cycle, TI’s Supply Chain
Management team reviews the results and looks for ways toimprove processes and policies.

21

Progress against goals
In 2019, we assessed 179 suppliers with 300 factory locations,and 90% met our expectations. The remaining 10% required
corrective actions, which included additional training andengagement with workers to explain paychecks and wage
withholdings, improving dormitory conditions, and enhancing theirpolicies and recordkeeping.

Training
We deliver online and in-person training on our Supplier Codeof Conduct, standards and expectations. We also leverage
RBA’s training programs to help suppliers understand its codeof conduct, labor risks, respecting workers’ rights, hiring migrant
workers and more.

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Grievance mechanisms
TI has established grievance mechanisms to ensure that our buyers
or procurement representatives are available to meet with our
suppliers to address any questions or concerns. Our Supply-Chain
Management team can also assist with identifying and addressing
issues inconsistent with our ethics and values. If suppliers prefer,
they can contact our Ethics Office to anonymously ask questions or
discuss issues.
Our Supplier Code of Conduct requires our suppliers to establish
and maintain programs that ensure the confidentiality, anonymity
and protection of supplier and employee whistleblowers, unlessprohibited by law. Suppliers must have a communicated process
for their personnel to be able to raise any concerns without fearof retaliation.

Supplier diversity
We set annual goals to do business with minority- and womenowned business entities (MWBEs). For over 20 years, TI has
focused on ways to diversify its supply chain with an approach that
includes all businesses with a competitive product or service to

13

Goals and results

2015

2016

2017

2018

2019

Goal

ResultGoal

ResultGoal

ResultGoal

ResultGoal

ResultMinority-/women-owned business supplierspend (% of total U.S. supply-chain spend)

6.5%

7.9%

6.5%

8.6%

6.3%

6.4%

8.7%

9.2%

8.5%13 10.0%13

Targeted suppliers completing environmental
and social responsibility assessments (%)

100%

99%

100%

100%

100%

100%

100%

100%

100%

100%

Production suppliers rated as low risk for
all facilities on environmental and social
responsibility SAQ assessments (%)

Baseline

69%

80%

86%

85%

88%

85%

87%

90%

89%

offer. Most of our supplier diversity engagements are concentrated
in the U.S., primarily Texas, where our headquarters and severalof our major manufacturing facilities are located, enabling us
to contribute to the economic impact on our communities.
Additionally, our 2019 goal was to devote 8.5% of our U.S. spend
to diverse suppliers. We exceeded that goal by spending 10% withminority- and women-owned businesses.
Human rights in the supply chain
TI is a member of the RBA, an industry coalition dedicated tocorporate social responsibility in global supply chains. The
RBA provides a set of industry standards in the RBA Code of
Conduct that reference international expectations for laborand human rights, including:• The International Bill of Rights.
• The Universal Declaration of Human Rights.
• The U.N. Guiding Principles on Business andHuman Rights.
• International Labor Organization (ILO) International
Labor Standards.
• OECD Guidelines for Multinational Enterprises.

Our 2019 MBWE goal was lower because one supplier was purchased by another company that did not meet our MBWE certification requirements.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

22

• We developed a Conflict Minerals Policy and put management
systems and due-diligence procedures in place to identify andremove conflict smelters from our supply chain. These conformwith the OECD’s Due Diligence Guidance for Responsible Supply
Chain from Conflict-Affected and High-Risk Areas, which requires
the establishment of policies, structures and procedures, risk
management, and communications mechanisms. We distribute
our Conflict Minerals Policy to both first- and second-tiersuppliers and reinforce their full and prompt response to our
information requests.

Table of contents• We require that suppliers report to us the smelters from which
they source minerals and notify us if any person or entity in their
supply chain is directly or indirectly financing or benefiting armed

CONFLICT MINERALSCEO letter
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Tantalum, tin, tungsten and gold (3TG) are used in various
technologies and electronics, from computers to phones, due totheir electrical and noncorrosive properties. These minerals areoften referred to as “conflict minerals” because profits from thesale of minerals mined from certain smelters within the Democratic
Republic of the Congo (DRC) and adjoining countries have fundedwars and related human rights violations in the region for many
years. We believe that the purchase of minerals from illicit mines is
an important concern globally, and agree that companies should
not purchase from such mines.
We are committed to ensuring that our products do notcontain minerals derived from sources that finance or benefit
armed groups in the DRC or adjoining countries.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act requires that companies disclose the steps
they are taking to determine whether the smelters they workwith support those conflicts. These reports are independently
audited, and TI files them annually with the SEC.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Our approach
We work diligently with our supply chain, including subcontracted
manufacturers, to identify and eliminate noncompliant sources ofmaterial. For example:• Before we were required to disclose our due diligence to theSEC, we joined the Responsible Minerals Initiative (RMI).
Members of the RBA and Global e-Sustainability Initiative
created the RMI to help advance effective policies that address
conflict mineral concerns while considering the complexities of
the global supply chain. We helped create and test tools thattrack the sourcing of minerals, conducted smelter outreach andcontributed to its initial audit fund. This program works withcompanies to develop plans to exercise their due diligenceover cobalt supply chains in accordance with Organization for
Economic Cooperation and Development (OECD) Due Diligence
Guidance. TI has started taking steps to eventually disclose theuse of cobalt in its supply chain.

groups in the conflicted regions. We then analyze that informationand validate it against a list of facilities that have received
a “conflict-free” designation from the Responsible Minerals
Assurance Process (RMAP), a process developed by RMI andother sources. We initially gathered this information from our toptier suppliers, but in cases where information was not available,
we assessed second-tier suppliers.
• We encourage suppliers to direct all smelters in their supply
chains to participate in the RMAP. The RMI notifies TI and otherparticipating companies if any smelter changes its operations
or refuses to participate in an audit so that we can takeappropriate action.

Our progress
We monitor the conflict-free status of our integrated circuit smeltersand continue to close information gaps on our remaining smelters.
Integrated circuits refer to finished semiconductor products
manufactured by or for TI and packaging subcomponents, suchas mold compounds, bond wires and leadframes. It excludes
DLP® products, semiconductor modules and other products
manufactured by or for TI. Integrated circuits accounted for nearly
92% of TI revenue in 2019.

23

We collect and audit smelter information from our first- andsecond-tier suppliers. From our research and information
gathering, none of the smelters evaluated to date arefinancing or benefiting armed groups.

Smelters that potentially supply integrated circuits to TI
1%

11%

1%
1%

246

222

smelters

smelters

Table of contents

88%

98%

CEO letter

2018

2019

TI at a glance
Our commitment andreport overview
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Conflict-free – Smelters for which we determined, based on
an independent third-party audit, that the conflict minerals
potentially supplied were conflict-free.
Committed to audit – Smelters for which we were unable todetermine the origin of minerals potentially supplied to us.
These smelters agreed to participate in a third-party audit of
their conflict status.
Undeterminable – Smelters for which we were unable todetermine the origin of the minerals potentially supplied to us.
These smelters did not commit to participating in a third-party
audit of their conflict status.

Global Reporting
Initiative index

LABOR AND HUMAN RIGHTS AT TI
We believe in respecting one another, protecting human rights andensuring individual dignity, freedom and respect in our operations.

Our commitment in our operations and supply chain
In addition to the expectations we have for suppliers, Texas
Instruments is committed to upholding international humanrights and labor standards and the fair and equitable treatmentof all employees, contractors and suppliers. In our business andmanufacturing operations, all employment is voluntary, pay is fairand consistent with local labor standards and laws, and hours
are reasonable. We do not use child labor in any area of ourbusiness. Employees have the freedom to associate and/or theright to collective bargaining as provided by local statute. We also
periodically conduct global employee surveys and roundtablediscussions during on-site visits to better understand site-specificwork climates.

Proactively managing labor and human rights risks• Conduct periodic risk assessments and due diligence with
our suppliers using the OECD Guidelines for Multinational
Enterprises.
• Utilize third-party audits, onsite interviews and assessments
in high-risk geographies to ensure the rights of employees,
suppliers and contractors. These including labor standards,
training and awareness-building practices and freedom toassociate and incident reporting tools.

How we address concerns if they are raised
To convey workplace concerns and improvement opportunities,
employees have multiple channels to contact internal authorities.
Anyone can anonymously report allegations of human rights abuse,discrimination or other complaints through a direct supervisor,
human resources, our ethics director or calling our ethics line.
When we learn of concerns, we immediately evaluate the situation
and work to address it.

Our goal is to have zero human rights allegations
in our supply chain and we:2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

24

Our values
Trustworthy
We start by being trustworthy. We act with integrity anddo the right thing, every time. We operate in a socially
responsible way. Being trustworthy is foundational for us asa company and as individuals.
Inclusive
We thrive by being inclusive. We create an environment that
unlocks everyone’s potential, where we treat one another withrespect, value our differences, and are encouraged to put ourthoughts and ideas on the table.

Table of contents

AMBITIONS, VALUES AND ETHICS

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Every TIer plays a critical role in upholding our company’s
ambitions, values, code of conduct and policies, as outlined in
Living our values – TI’s ambitions, values and code of conduct. Asa multinational company, we expect all employees to take personal
responsibility for upholding and living our values and operating
responsibly and ethically.

Training and engagement

Violations of our ambitions, values, code of conduct or policies
may be grounds for termination of employment. TI will not tolerate
retaliation against those who have reported an issue in good faith.
Anyone who retaliates against an employee for these activities issubject to disciplinary action, which may include termination.

Every employee takes training on ethics, compliance topics, corevalues, environment, safety and health, confidential information
protection, information technology security, and avoiding workplaceand sexual harassment. Additionally, select employees and staff aretrained on human rights topics, and other TIers receive training on
fraud prevention, export compliance, the Foreign Corrupt Practices
Act, insider trading, global competition law and the RBA Code of
Conduct. Finally, we engage top managers on ethics and provide
tools for them to promote ethics and compliance within theirrespective organizations.

Reporting concerns
When a TIer sees behaviors inconsistent with our ambitions, values,
code of conduct or policies, it is their responsibility to speak up.
They can do so by talking to a manager or human resources.
Anonymous helpline:• Online at:
texasinstruments.
alertline.com• Call U.S. toll-free:
1-888-590-5465

Our sites are in diverse geographical locations with varied risksof corruption, societal pressures, laws and regulations. We give
TIers, managers and leaders the training and tools they need tohelp them make the right decisions about how they should conduct
themselves in business.

Innovative
We win by being innovative. We imagine new technologies
that produce compelling products, open new markets andimprove our competitiveness. We are curious, persistent anddetermined to overcome barriers.
Competitive
We embrace a competitive world. We hate to lose, so we
continuously challenge ourselves to perform at our best.
We invest in the best opportunities for sustainable growth.
To stay competitive, we attract, develop and retain thebest people.
Results-oriented
We are results-oriented and hold ourselves accountable.
Our customers have choices, and we act with urgency anddeliver on our commitments. We improve our performance
every day to help our customers succeed.

Direct contact:• Email ethics@ti.com• Write to P.O. Box
830801, Richardson,
Texas 75083-0801

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

25

• Monitor IT systems and respond to alerts regarding
inappropriate activity.
• Deliver cybersecurity awareness and confidential information
protection training to all TIers, and specialized security training to
our IT team.
• Conduct risk and compliance assessments of third parties
requesting access to our IT resources and information.
• Implement technical measures to protect TI’s web presence(TI.com) from external attacks, including protections for our
online store.
• Deploy industry-standard protections, such as multifactor
authentication, malware defenses and access review processes.

Table of contents

INFORMATION PROTECTION

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We work continuously to identify and eliminate potential threats to
our information technology (IT) infrastructure and our proprietary
technologies. This protection is key to business growth andprofitability, and required in order to maintain compliance with such
regulations as the General Data Protection Regulation and the
China Cybersecurity Law.
We work diligently to protect our intellectual property,
competitiveness and reputation from potential cybersecurity threatsusing a variety of techniques, including industry frameworks andsecurity standards and collaboration with experts and industry
partners, with whom we exchange information about threats, bestpractices and trends.

Reducing risks
As computer-based threats and vulnerabilities continue to grow innumber and sophistication, so have concerns about information
protection from our global partners, suppliers and customers. Ourrisk management process is based on best practice management
and governance frameworks, such as the ISO, the National

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Institute of Standards and Technology, and Control Objectives for
Information and Related Technologies.
Using guidance from these organizations, as well as informationcollected from our assessments, we develop security plans,
policies and protocols to reduce our risks and strengthen our
security posture. Our policies range from defining the acceptable
use of the company’s information assets, to technical requirements
for specific technologies, to how we protect personal informationand privacy.

Phishing for awarenessTo complement our cybersecurity training, TI employees
receive simulated phishing assessments multiple times ayear. This provides opportunities to reinforce their training
and expose them to a variety of phishing attack themes. As
users demonstrate awareness of common phishing tactics,
we have increased the difficulty of these assessments overtime and will continue to do so.

Our global Information Security team identifies and responds topotential threats and works with our business units and support
teams to improve security. As part of this, we:• Restrict access to data on our computers, servers,
networks and other IT systems.
• Conduct regular phishing and spear-phishing assessments
for employees and send accompanying education andawareness communications.
• Monitor and limit the use of USB or thumb drives andexternal hard drives.

26

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

PUBLIC POLICY

Sustainability

Workplace
Giving and volunteering
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We work with governments to advocate for policies that promote
our growth, innovation and competitiveness, such as access totalent and policies related to tax, trade and racial equity. Educating
policymakers about the implications of their decisions on ourbusiness is important to advancing laws and regulations that help
sustain our competitiveness and long-term growth.
Visit our Public Policy website to learn about:• Corporate political activities.
• TI’s Political Action Committee.
• Political activity of our employees.
• Policies and expectations.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

We belong to many associations with which we collaborate on
various policy objectives. We are more active in some organizations
than others; we do not work on all issues with every associationand may not align on all positions.

Political expenditures
120
100
Thousands $Responsible businesspractices$113.0$99.0$104.5$102.0$101.0

Political action
committee
Corporate
contributions

80
60
40
20
0

$12.5
2015

$7.5
2016

$0
2017

$7.5
2018

$0
2019

TI chose not to make any corporate contributions to local ballot
initiatives in 2017 and 2019.

27

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

Workplace

Sustainability
Responsible businesspractices
Workplace
Giving and volunteering

Our company is a reflection of our people – 30,000 problem-solvers around the

Global Reporting
Initiative index

globe working to create a better world by making electronics more affordable
through semiconductors. Our people, known simply as TIers, make our company
great. TIers are unique. They act with integrity and respect others. They are
curious. They challenge themselves and each other to be the best. They imagine
the future of technology and work relentlessly to solve problems and help ourcustomers innovate to create a better world.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

28

Our inclusive culture creates a place for all TIers to be heard, bethemselves, contribute at a high level and make a difference. We
do not back away from tackling tough issues because we believe
discussion leads to understanding, and understanding helps break
down barriers. Embracing diverse backgrounds, perspectives andapproaches to problem-solving continue to make our culture more
inclusive, our company stronger and our products more innovative.
“At TI, we are committed to creating an inclusive work
culture. Inclusion is about creating an environment in which
our people can bring their best to work in order to achieve
success and deliver the best results.”

Table of contents
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Initiative index– Rich Templeton, TI chairman, president and CEO
To create an inclusive and diverse workforce, we focus on:• Advancing inclusion globally. Our diversity and inclusion
programs connect leaders, human resources managers andemployees to resources, training and open discussions about
how inclusive behaviors can impact business results andpositively impact productivity and innovation.
• Hiring diverse talent. We partner with a diverse mix ofuniversities, diversity conferences and programs to broaden
our outreach and attract more diverse talent. We use college
recruiting programs such as internships and rotations aswell as new programs, including an initiative to attract andhire veterans and a “returnship” program for experienced
professionals returning from a career break. These programs
broaden our access to great talent with a variety ofbackgrounds and experiences.
• Cultivating a diverse leadership pipeline. We have programs
to develop and retain high-performing, diverse talent, so ourleadership reflects our workforce. We are committed to growing
our leaders from within, and we train our leaders on inclusion anddiversity through our high-potential and leadership development
programs and initiatives.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS• Investing in our future through science, technology, engineeringand math (STEM) education. We invest to help build the next
generation of engineers through community involvement andgiving, with a focus on helping better prepare girls and Blackand Latinx students, since these groups are traditionally
underrepresented in STEM fields.
Addressing unconscious bias
Unconscious biases are small judgments that people makequickly. It’s something everyone has experienced, perhaps
without realizing it. To help check those biases, TI hosted
a bus tour with CEO Action for Diversity and Inclusion that
included a series of immersive activities to help identify
bias and understand what it is like to walk in someone
else’s shoes. Cultivating a trusting environment where our
employees feel empowered to discuss diversity and inclusion
is a top priority at TI. We must put ourselves in other people’s
shoes and come face to face with our unconscious biases.

Recognized for our commitment to equality
For the past four years, TI has received a 100% rating by
the Human Rights Campaign (HRC) Corporate Equality
Index. We strive to provide a workplace where people canbe themselves and deliver their best, which is why we’rehonored to be recognized as a top place to work for LGBTQ
equality. In addition to this rating, we have joined HRC’s
Business Coalition for the Equality Act as an employer
supporting the passage of the Equality Act in the U.S.
Global workforce by gender
20

18.6

18.5

18.7

18.6

18.2

Male
Female15
Thousands

Diversity and inclusion

11.3

11.2

11.1

11.1

10.8

10

5

0

2015

2016

2017

2018

2019

Employees

2015

2016

2017

2018

2019

Asia
Male
FemaleAmericas
Male
FemaleEuropeMale
Female14,954
7,077
7,877
12,607
9,517
3,090
2,416
1,989
427

15,201
7,233
7,788
12,445
9,455
2,990
2,399
1,968
431

15,3207,519
7,821
12,079
9,212
2,867
2,295
1,875
420

15,6097,772
7,837
12,006
9,120
2,886
2,273
1,853
420

15,322
7,690
7,632
11,763
8,936
2,827
1,966
1,625
341

29

Table of contents

TI Diversity Network

Here are a few ways our ERGs are making an impact:

For more than 30 years, the TI Diversity Network (TIDN) has
helped educate employees and surface topics that matter to
employees through 15 grassroots employee resource groups(ERGs). Our journey started in 1989 with the women’s andHispanic ERGs and has grown to include more than 10,000
members, a strong employee-led diversity council and an
executive sponsor committee of company officers.

• Women’s Initiative (WIN). WIN members around the world focus
on increasing our company’s female talent pipeline, advancing
women in technical leadership roles, and strengthening ourcommunities through mentorship with organizations such as Girl
Scouts to give young girls visibility into a STEM career.

Open to all TIers globally, ERGs encourage employees to discusschallenges, share ideas and create opportunities to provide
development, career advice and community involvement that
supports both members and the local community. All TI ERGs
have goals and objectives that are aligned with and in support ofour values.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index• Hispanic/Latino Initiative (Unidos). Unidos members focus
on recruiting top Hispanic talent to TI and regularly attend
the Society of Hispanic Professional Engineers conference torecruit new college graduates. They also represent TI at theCongressional Hispanic Caucus in Washington, D.C., each year.

Giving TIers a voice“Even though TI is a large, global company, the company
creates a culture where each member of our team has a voice– a voice to provide ideas, feedback and creativity to ensure
success. My unique voice can assist in finding solutions tomake our company even stronger. I make TI better, and TI
makes me better. I couldn’t ask for more.”– Paitrick, a member of BEI and a pricing
applications manager in IT• Black Employee Initiative (BEI). BEI members focus on
the recruitment and retention of Black employees throughprofessional development and mentoring. Members of BEI also
represent TI at the Congressional Black Caucus in Washington,
D.C., each year.
• TI Pride. Pride’s focus is to create an environment of respect at
TI so that people of all sexual orientations and gender identities,
as well as perceived sexual orientations and gender identities,
can be their true selves at work, and maximize their creativity
and productivity. TI Pride’s Safe Space program focuses on
LGBTQ+ awareness in the workplace. Recently, this ERG led aneffort to expand and facilitate safe space conversations within
our Technology and Manufacturing Group and expanded training
to five factory sites, reaching more than 200 first-line supervisorsand senior leaders.
The TIDN includes three faith-based ERGs:• Muslim Employee Initiative.
• Christian Values Initiative.
• Jewish Initiative.
As a global company, the TI workforce represents a wide
range of diverse worldviews. For many employees, their faith
is the foundation of their core values and self-identity.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS30

A champion for women in STEM careers
As sector general manager for TI’s Automotive Infotainment
team, system engineer Hope was instrumental in launching
the Silicon Valley chapter of High-Tech High Heels (HTHH),a nonprofit that strives to eliminate the gender gap in
STEM careers.
“You need a holistic approach to get girls into STEM
because they start to lose confidence in math and science
as early as fourth grade,” Hope said.
HTHH hosts camps and training for young girls and womenthat create a supportive environment of learning andmentorship. Hope serves as a member of the board andleads the volunteer committee.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Commitment to equal employment opportunities
TI’s commitment to equal employment opportunity extends torecruiting, hiring, training, promotion, transfers, compensation,
benefits, termination, and all other terms and conditions of
employment. TI administers employment decisions at TI in a
nondiscriminatory manner without regard to race, color, religion,sex, gender, gender identity and expression, sexual orientation,
marital status, national origin, ancestry, age, disability, genetic
information, protected medical condition, pregnancy, military andveteran status, or any other characteristic protected by applicablelaw (collectively, “protected characteristics”). TI does not tolerate
any harassment, intimidation or violence.
TI is committed to following the eight ILO fundamental conventions
on equal remuneration without discrimination, ensuring the
remuneration of all employees based on their qualifications and noton their gender identity or personal characteristics.
Valuing our differences
Inclusion encourages people to put
thoughts and ideas on the table tohelp unlock everyone’s potential.
“Being inclusive is about forming
connections with people,” said
Amna, TIDN co-chair. “It’s hard to
put culture into words because it’s
intangible, but you can see and feelthe diversity here.”
The Association of ERGs andCouncils’ 2019 ERG and Council Honors Award
recognized the TIDN for its management commitment,
accountability and efforts to communicate and educate
employees about inclusion and diversity.

Inclusion and diversity awards•F orbes magazine’s “America’s Best Employers
for Diversity.”•C AREERS and the disABLED magazine’s“Top 50 Employers.”•M inority Engineer magazine,“Top 50 Employers,” 8th year.
•N ational Association for Female Executives,“Top Companies for Executive Women,” 15th
consecutive year.
• Woman Engineer magazine, “Top 50 Employers.”•W orking Mother magazine, “100 Best Companies
for Working Mothers,” 22nd year.
• Association of ERGs and Councils Honors Award.

Recruitment
Our ability to grow and thrive depends on recruiting and retaining
the best talent in the industry. Candidates choose TI again andagain because we offer:• Exciting and impactful work across a number of markets,businesses and product lines.
• The opportunity to collaborate with the brightest minds
in technology.
• Competitive pay and benefits packages designed to help our
employees live their best lives.
• Career development opportunities where employees feelempowered to own their career paths.
• An inclusive and diverse culture where all employees can bethemselves and bring their best to work.

31

Our recruiting strategy centers around hiring a large number of
new college graduates; many start their TI careers in our global
rotation programs. These programs offer new graduates handson, meaningful experiences from their very first day on the job,and provide training and development opportunities to quickly
make an impact at TI. We offer internships around the world, which
are our primary source for hiring entry-level talent into the global
rotation programs.
TI recruits talent at female, underrepresented minority and
LGBTQ+ events and meetings of associations such as:• Asian American Engineer of the Year
• Hispanic Engineering Awards Achievement Ceremony

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index• Our Women for Technical Leadership program, which helps
build a diverse talent pool of women with the intent to help
them eventually become a business or technical leader at
our company.
• Our Advancing Leadership initiative, which helps accelerate
leadership capabilities for a diverse set of team leads or first-level
managers to prepare them for a broader scope of responsibility.
We conduct pulse surveys quarterly to understand what’s on
our employees’ minds and to gauge their job satisfaction andengagement in their work. In a recent survey:• Around 90% of our employees said that their jobs provide
them with interesting and challenging work.

• National Black MBA Association• Out in Science, Technology, Engineering and Math

• Approximately 90% said that they are proud to work at TI.

• Grace Hopper Celebration of Women in Computing• Society of Hispanic Professional Engineers• National Society of Black Engineers• IEEE Women in Engineering Leadership• National Black MBA Association• National Association of Black Accountants• Out & Equal

At TI, employees own their career and development with thesupport of human resources, their managers, and programs andresources we provide. We invest in training and development
programs to advance employees’ learning in classrooms, online
and through on-the-job stretch assignments. We encourage
employees and managers to meet at least twice a year to discuss
performance goals and career development.
Accelerating leader readiness
TI’s Business Leader Development program accelerates
readiness across all business organizations, with women
making up 30% of participants. The program includes
four interactive work sessions designed to give employees
a deeper understanding of profit and loss leaders andculminates in a two-day business simulation exercise.

• About 95% know that they are contributing to thecompany’s success.

• Society of Women Engineers/WE Local• Black Engineer of the Year Awards

Development

We also use data analytics that allow us to track turnover by region
so we can tailor initiatives for improvement. In 2019, turnover was
8.5%, up 1% from 2018, while 26% of our employees had worked
at TI for more than 20 years.

Worldwide turnover
10

For highly specialized technical and business roles, we have asourcing and hiring strategy for experienced candidates thathelps us identify, network and recruit the best and brightest
in the industry to come work at TI. We recruit from the states
and countries where we operate, particularly for entry-level andmanagerial positions, and then train and develop employees formore advanced or senior roles.

Retention
Retaining employees with institutional knowledge, technical andoperating expertise, and extensive relationships within our company
is a top priority for TI. We recognize that retaining women andminorities, who are traditionally underrepresented in technology, iscritical. We invest in these groups with tailored career development2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

8

7.8%

8.5%
7.4%

7.4%

7.5%

2016

2017

2018

6
%

Table of contents

plans and provide mentors who encourage their professional
growth. Two examples of our efforts include:

4
2
0

2015

2019

32

We have rigorous processes and tools for identifying and growing
talent from within, enabling us to build critical talent pools andprepare potential leaders so that we have the right talent whenleadership opportunities emerge. This includes:• Leader assessments that help identify talent deeper in ourorganization and reduce biases in development opportunities.
• Biannual talent review discussions within each organization.
• Leader development programs for women, technical leaders andbusiness leaders.

Leaders/managers

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

We help new supervisors, frontline managers and managers
of managers effectively transition into their leadership roles
through our LEADERSHIPmatters curriculum, and we offer
high-potential employees on-demand learning to strengthen
their leadership skills. We use 360-degree assessments andother development plans, online and hands-on learning, peer
coaching, and teambuilding activities to enhance leadership skills,
communication and collaboration.

Training per employee
40

Responsible businesspractices35

Workplace
Giving and volunteering
Global Reporting
Initiative index(Average hours)

Sustainability

36.6
32.7

33.4

31.0

30

30.3

The TI Tech Ladder, first introduced in 1968, is a technical career
path with increasing levels of responsibility and influence on thecompany’s technical direction. Titleholders are peer-elected basedon demonstrated leadership, innovation and initiative to contributeto the company’s goals.
We provide technical development for our engineers to improvetheir foundational skills and adapt their abilities to address changing
technical needs. TIers also can participate in technical conferences,
workshops, lectures and symposia.

Development programs for women
We sponsor selected TIers to participate in programs to prepare
team leads, first-level managers and high-potential women fortechnical leadership and management roles. These include formal
training and coaching to address opportunities for continued
growth, including:• Leadership America, an organization focused on equal
opportunities for leadership at all levels of decision-making inpolitical, economic and public life.
• The International Women’s Foundation, an organization for highachieving women that aims to expand knowledge and skills,
develop connections among female leaders, and cultivate thenext generation of emerging female leaders.

Recognized by the National Association of Female
Executives (NAFE)
For 15 years, NAFE has recognized TI for its efforts
to advance women’s career paths, particularly female
executives. We train managers to develop and promotewomen and have a formal executive succession planning
program in place. In 2019, women comprised:• 33% of our board of directors• 13% of profit-and-loss positions• 33% of direct reports to our CEO

Early Career Pivotal Learning Roles program
The Early Career Pivotal Learning Role (ECPLR) program is a
10-month program for selected early-career employees thatgives participants the opportunity to learn a different role or new
set of skills while working closely with leaders, technical experts
and talent from across TI. The ECPLR program creates business
impact by taking strong performers and matching them with highimpact problems, giving them the opportunity to find solutions andshowcase their results.

• Leadership Texas, which provides educational and development
opportunities to Texas women who seek to advance as leadersand expand their knowledge of the diverse dynamics, issues,challenges and opportunities impacting their work, personal lives
and communities.

25
20
15
10
5
0

Technical development

2015

2016

2017

2018

2019

Training hours in 2019 decreased slightly as a resultof a new learning management system with enhanced
tracking and assignments, and the retirement of someolder and longer courses.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS• TI’s Women for Technical Leadership program, which is designed
to inspire a more diverse pool of early- and mid-career talent andprepare them to join the ranks of our most prestigious technicalcommunity, the TI Tech Ladder. The one-year program consistsof a mix of targeted experiences, customized training, personalcoaching, and leadership insights and roundtables. In 2019, we
saw a 71% increase – from 69 to 118 – of female applicants to
the Technical Ladder, which recognizes and rewards elected
members who make innovative contributions and demonstratetechnical leadership.

33

Compensation

In the U.S., TI supports families in a variety of ways, including:

We offer competitive compensation and designed ourcompensation strategy to ensure that key talent, who will drive
future growth, will remain with the company. Our compensation
philosophy is based on pay for performance. Both the employee’s
contribution to our success and company performance determine
an individual’s compensation.

• Parental leave: TI supports new parents with time off to bond withbabies and recover from giving birth. New mothers and fathers
receive four weeks of paid parental leave. Birth moms receivea total of 12 paid weeks of leave (eight weeks of paid maternity
disability leave and four weeks of parental leave).
• Dependent care: TIers can contribute pre-tax money to pay
for qualified dependent care expenses using their flexible
spending account.

TI offers a global profit-sharing program that rewards all TIers
across all levels of the organization for contributing to its financial
success. TI makes payouts as a percent of eligible earnings
based on profitability each year. Some countries where wehave operations, such as France and Mexico, have statutory
requirements for their profit-sharing programs, which we meet.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Our profit-sharing formula is based on profit from operations (PFO)
and begins when TI reaches 10% PFO. The maximum payout is
20% when PFO reaches 35%. All TIers receive the same payout asa percentage of eligible earnings. The compensation and benefits
we provide exceed or are in accordance with local laws. We do not
maintain a standard entry-level wage for every country; however,
we have verified that we pay employees above the local minimum
wage in every country where we operate. For the last four years,
our profit sharing plan has paid out at the maximum level possible,
equating to a 20% bonus for all eligible employees.
Pay equity
We pay our employees fairly and equitably. TI has long beencommitted to competitive and equitable compensation
regardless of gender, race, ethnicity or other protectedcharacteristics, and we have designed checks and balances
into our compensation system, including regular in-depth
analyses, to ensure that we achieve it.
In 2019, we conducted a separate compensation analysis
examining gender and race pay parity (including base, bonus
and equity), that considered job type, job level and country.
Our analysis confirmed that within the U.S. and worldwide,
TI pays women as much as men, and in the U.S., TI pays
minorities as much as nonminorities.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS• Child care: We partner with the Learning Care Group to offer
TIers a discount on early education and child care services,
including before- and after-school programs and summer camps
for children ages six weeks to 12 years old. This care network
includes more than 900 U.S. locations.

Work-life balance and resources
We believe that offering work-life support helps us attract, engage
and retain top talent. Across TI, we offer a variety of worklife programs to reduce daily stressors that can interfere withworkplace satisfaction and productivity. While initiatives and goals
vary globally depending on specific work cultures and governmentsubsidized programs, examples include:• Counseling sessions, on-demand resources and referrals for childcare and elder care through our Employee Assistance program.
• Concierge services for vacation planning, making reservations orother personal transactions.
• Adoption support and reimbursement.
• Flexible work arrangements and the ability to work remotely.
• Discounted child care, seasonal children’s camps and parent’snight out events.
• Complimentary dry cleaning and packing services.
Work-life recognition
Working Mother magazine’s “100 Best Companies for
Working Mothers,” 22nd year

• Private lactation rooms: To support new mothers returning towork, TI offers private lactation rooms equipped with a phone,
comfortable seating, a refrigerator and a medical-grade pump.
Balancing work with life
Angela, an HR manager at TI and mother of two, feels she isa better parent because of work.
“You don’t have to be
perfect to be a great parent.
I had to embrace themessiness and imperfectionthat comes with being aworking parent. This has
allowed me to have more
realistic expectations, beflexible and ask for help.
It’s not easy to leave mykids and go to work every
day, but I remind them andmyself that it’s important towork hard for the things you
want to accomplish.”34

Recordable case rate

(Cases per 100 employees)

0.20

0.20

0.20

0.20

0.20

0.20 0.20
Result

0.16
0.15

0.15

0.16

Goal

0.15

0.10

0.05

0.00

2015

2016

2017

2018

2019

Occupational and general health

Table of contents

EMPLOYEE SAFETY AND HEALTH

CEO letter

Our commitment andreport overview
Sustainability
Responsible businesspractices

We believe that every workplace injury or illness is preventable,
which is why we invest in and incorporate safe and healthy
practices into our employees’ daily routines. From building
awareness to delivering specialized training and putting healthand safety controls in place, we implement programs worldwide to
reduce the risk for injury or illness.

Workplace

SafetyGiving and volunteering

We have established and continue to champion a safety-oriented
culture that includes implementing safety requirements and bestpractices globally to ensure a safe and healthy work environment
for all of our employees. To maintain one of the industry’s bestsafety records, we:Global Reporting
Initiative index• Create and operate safe work sites and maintain proper safety
protocols and controls.
• Design and build inherently safe buildings and engineer out
equipment risks.
• Deliver relevant and required safety training.
• Inspect our equipment and continuously audit our processes toassess compliance and performance.
• Evaluate, screen and control the chemicals
we use in manufacturing.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Globally, we aim to achieve zero work-related injuries and illnesses.
We also set specific safety goals that include a days away,
restricted or job transfer (DART) case rate of 0.08 or less, and arecordable case rate of 0.20 or less.
In 2019, we did not meet our DART goal because our reporting
mechanisms became more robust and mature at some of ourinternational locations, which led to more awareness and incident
reports. Our DART and recordable rates continue to be the lowest
within our industry. In 2018, industry averages were 0.3 for DART
case rates and 1.2 for recordable case rates. 2019 industry data is
not yet available.
Days away, restricted or job transfer (DART) rate

0.08

• Conduct health assessments and provide preventive
screenings and immunizations.
• Offer employee assistance programs, counseling andeducation services.
• Provide integrated disability case management associated withshort- and long-term disability, workers’ compensation, leave
under the U.S. Family and Medical Leave Act, and any work- or
non-work-related health concerns.
• Provide health and well-being information andimprovement programs.

0.10

0.10
(Cases per 100 employees)

TI at a glance

To reduce exposure to health risks, we eliminate or limit the useof potentially harmful materials, install ventilation and isolation
controls, conduct general hygiene area and individual assessments,
and require the use of and provide personal protective equipment
where necessary and advisable. We also promote healthy lifestyles
both at work and at home to make it easy for our employees tomake healthy choices. For example, we:Result
0.08

0.08
0.07

0.08 0.08

0.08 0.08

2017

2018

0.08

0.07

Goal

0.06
0.04
0.02
0.00

2015

2016

2019

35

Additional health and safety data
Description

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

2018

2019

Recordable cases (employees)

0.15 (48 cases)

0.16 (48 cases)

Recordable cases (contractors)14

0.36 (6 cases)

0.27 (5 cases)

Fatalities from work-related injuries (employees)

00

Fatalities from work-related injuries (contractors)

00Fatalities from work-related illness (employees)

00

Fatalities from work-related illness (contractors)

00High-consequence injuries (employees)

0.007 (2 cases)

0.007 (2 cases)

High-consequence injuries (contractors)00

Hours worked (employees)

58,253,519

59,425,882

Hours worked (contractors only)

3,335,737

3,658,678

Recordable cases from work-related illness (employees)

49Recordable cases from work-related illness (contractors)

1

0

Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

14

All references to contractors in this report refer to supplemental contractors.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

36

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices

Giving andvolunteering

Workplace
Giving and volunteering

One of our three ambitions is to be a company that you’d be proud to be

Global Reporting
Initiative index

a part of, and one that you’d want as a neighbor. For decades, TI, the TI
Foundation and TIers have risen to the challenge and give generously of
their time and money to impact the communities around us.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS37

Evaluating our impact
Over the past five years, TI and the TI Foundation have given morethan $150 million toward education in the U.S. Specific to STEM
education, the TI Foundation alone has invested more than $50
million between 2010 and 2019 in programs that improve learning
outcomes and opportunities for students who have historically
been underrepresented.

Table of contents

INVESTING IN STEM EDUCATIONOne example of an education initiative that we fund outsideof the U.S. is TI Hope Schools, designed for students in ruraland impoverished areas of China. We have invested in 10
schools through construction, classroom technology andemployee volunteerism. Today, these schools are benefiting
48,000 students from the Sichuan, Hubei, Jiangxi and
Shaanxi provinces.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

Our commitment to build equitable communities through thetransformative power of education remains our highest giving andvolunteering priority. TI has invested tens of millions of dollars of
TI Foundation and company funds in programs and organizations
that improve STEM learning outcomes for students experiencing
significant educational disadvantages — either because of thecolor of their skin, their family’s income level, their school district orwhere they live.

Giving and volunteering

Equity in STEM learning

Global Reporting
Initiative index

TI has a long history of supporting programs aimed at narrowing
learning divides in the classroom, from introducing the Head Start
program in the 1980s for pre-K children in one of the poorest
neighborhoods in Dallas, to supporting programs that transform the
STEM learning experience for underserved K-12 students in North
Texas today. Recent contributions and support include:• $8.2 million in funding from the TI Foundation since 2012 toremodel the South Dallas Lancaster ISD (LISD) into a STEM
district. LISD students, nearly 90% of whom come from
economically disadvantaged homes and are 96% Black and
Latinx, now outperform other North Texas students in mathand science.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS• A $4.6 million multiyear grant from the TI Foundation to
implement a K-12 “STEM for All” concept in a high school
feeder pattern in the Richardson ISD for 16 schools and10,000 students, 63% of whom are Black and Latinx, and
59% of whom are experiencing economic disadvantages.
• Long-time support for the National Math and Science
Initiative’s College Readiness program, and STEM
professional development and training programs for publicschool teachers and principal candidates.
• Financial support for Urban Teachers and Teach for America
programs to recruit, train and retain effective math andscience teachers.
TI’s STEM Squad tour
Our commitment to the classroom learning experience
also includes volunteerism. TIers routinely engage withstudents at Richardson Independent School District’s (RISD)
Hamilton Park Pacesetter Magnet to get them excited andconfident about learning math and science, whether throughTI “STEM Squads,” reading days, or after-school tutoringand mentoring.

38

Other TI sites outside of the U.S. support organizations andcauses that align with the company’s values and addresscommunity desires.
Arts and culture (Dallas, Texas): We partner with arts and culturalorganizations that enrich our headquarters community, making
North Texas an attractive place to live and work. These include
the Dallas Museum of Art, Dallas Black Dance Theatre, Dallas
Children’s Theater, Dallas Symphony Orchestra and Dallas
Theater Center.

Table of contents

GIVINGCEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Our people are at the heart of everything we do, and TIers acrossthe world are generous with their time, resources and talents toinvest and make a difference in their communities. To double theimpact of our employee giving in the U.S., the TI Foundation15
offers a dollar-for-dollar match for U.S. employee and retiree
donations – up to $30,000 annually per person – to eligible
nonprofit organizations.
2019 total giving impact: $45.1 million
In 2019, TI and the TI Foundation gave $31.7 million
and employees donated $13.4 million to support
various education, community, and arts and cultureorganizations, including:• $23.1 million for education• $17.6 million for communities• $4.3 million for arts and culture
TI funds grants at major TI locations globally based onrecommendations from employees, local needs and strategic fit.
Each year, sites make funding decisions based on the resources
available and the needs of their neighbors. Our giving efforts focus
on three areas of community impact:

15

Education (global): We support programs that help remove
barriers to education around the world. In the U.S., we specificallysupport programs that boost STEM learning for Black, Latinx andfemale students in under-resourced communities. We consider
programs that:• Enhance teacher and principal effectiveness toward the teaching
and learning of STEM concepts for students who historicallyexperience educational roadblocks.
• Improve student engagement and achievement in STEM curriculaby providing innovative methods, programs and resources forteachers and classrooms.

TI and TI Foundation
giving ($ millions)

2015

2016

2017

2018

2019

Education$19.36$18.70$22.83$20.23$20.11

Community
investment

$5.43

$7.03

$7.14

$8.95

$8.27

Arts and culture

$2.20

$2.68

$3.44

$4.19

$3.28

Employee/retiree
giving ($ millions)

2015

2016

2017

2018

2019

Education

$1.77

$1.95

$2.11

$1.83

$3.03

Community
investment

$3.82

$4.12

$2.65

$6.85

$9.35

Arts and culture

$0.49

$0.53

$0.62

$1.10

$1.02

Outside of the U.S., we focus our efforts on providing access to
education, particularly in rural areas.
Basic human services (global): In the U.S., we consider
programs that:• Address basic needs, including disaster relief, hunger,
homelessness and programs for at-risk youth.
• Enrich civic and business climates, resulting in positive
community and economic impacts.

 he TI Foundation is a separate 501(c)(3) organization for the U.S. only. A board comprising TI leaders meets quarterly to invest in impactful grants, primarily in North Texas, toTorganizations that help students from economically disadvantaged schools graduate from high school proficient in science and math; address basic human service needs; andstrengthen arts and culture organizations in Dallas, Texas, home of TI’s headquarters.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

39

Making a difference in India
Like all public companies operating in India, the India
Companies Act requires that TI file an annual reporton corporate social responsibility activities. We havebeen active in Bangalore, India, and its surrounding
communities for many years. We identify and vet
nongovernmental organization partners that are helping
us make a greater impact.

Table of contents
CEO letter
TI at a glance

TI provides back-to-school resources for about 18,000
students in 130 schools in Bangalore and distant rural areas.
Our company has adopted 16 schools where we provide indepth support to about 2,000 students, including mentoring,
computer labs, science labs, backup power supplies, smart
classrooms and learning centers.
“If a child does not have food to eat, clean water to drink oraccess to basic education, we have to focus on that before
we can help them learn STEM topics,” said Aditya, whomanages TI’s corporate citizenship efforts in India.

Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

VOLUNTEERING

Giving and volunteering
Global Reporting
Initiative index

TI employees around the world spend thousands of hours eachyear making a difference in their communities by volunteering time
and talent as robotics coaches, science fair judges, mentors, tutors,
college and career-planning advisers and camp coordinators. We
provide resources and training to help our employees engage withstudents through classroom presentations and hands-on activities.
We align TI-sponsored volunteerism with two main areas ofphilanthropic focus: STEM education and the greatest community
needs, including hunger, poverty and homelessness.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

Teams around the world making a big impact
Across TI, we have more than 20 global Community
Involvement teams who work with local organizations to
identify key issues and the most effective ways to address
them in their communities. TI has empowered these teams
to make funding decisions based on available resources.
Their work may range from organizing a volunteer event torecommending a financial grant.

40

Honoring TIers for enriching their communities
We annually recognize two outstanding volunteers or
teams with the TI Founders Community Impact Award,
which includes a $10,000 gift to the nonprofits(s) of
their choice. Nine finalists also receive $2,500 gifts fororganizations they support.
In 2019, we honored Gina, an isolation marketing engineer,for her tireless efforts to eradicate a rare and terminal illness,
Batten disease. After her young son was diagnosed with thisdisease, Gina and her husband Matt started Batten Hope,a nonprofit that raises funding and critical materials needed
to start the first gene therapy clinical trial for Batten diseaseat the University of Texas Southwestern Medical Center andChildren’s Health, both located in Dallas. They have helped
raise more than $1.5 million to help families around the world
affected by Batten disease. Gina used her $10,000 grant forBatten Hope and its efforts to help advance clinical trials.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview

Volunteer hours
300

Sustainability

Workplace
Giving and volunteering

250
Thousand hours

Responsible businesspractices

273.3
234.6

200
158.8
150

173.4

130.4

100
50

Global Reporting
Initiative index

0

2015

2016

2017

2018

2019

Value of volunteer hours16
8

$7.43

7
$5.97

Millions

6
5
4
3

$3.83

$4.28

$3.07

2
1
0
16

2015

2016

2017

2018

2019

The value is based on Independent Sector, which estimates the value of each volunteer hour in 2019 at $27.20.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

41

Notice regarding forward-looking statements

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

This communication includes forward-looking statements intended
to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by phrases such as TI or
its management “believes,” “expects,” “anticipates,” “foresees,”“forecasts,” “estimates” or other words or phrases of similar import.
Similarly, statements herein that describe TI’s business strategy,
outlook, objectives, plans, intentions or goals also are forwardlooking statements. All such forward-looking statements are subject
to certain risks and uncertainties that could cause actual results todiffer materially from those in forward-looking statements.
For a more detailed discussion of these factors, see the Risk
Factors discussion in the first quarter 2020 Form 10-Q filedwith the SEC. The forward-looking statements included in thiscommunication are made only as of the date of this communication,
and we undertake no obligation to update the forward-looking
statements to reflect subsequent events or circumstances.
© Texas Instruments Incorporated 202042

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices

Global Reporting
Initiative index

Workplace
Giving and volunteering

TI reports using the Global Reporting Initiative’s (GRI) Sustainability Reporting

Global Reporting
Initiative index

Standards (GRI Standards) as guidance.
This table is an index of general and specific standard disclosures based on GRI
guidance. The index provides a simple and standardized way to share informationthat is both relevant and important to TI and its stakeholders.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

43

GENERAL DISCLOSURES

Table of contents

Indicator Description

Disclosure

102-1

Name of the organization

Our company name is Texas Instruments Incorporated (NASDAQ: TXN).

102-2

Activities, brands, products and services To learn more about our products, see SEC Form 10-K, Part I, pages 2-3.

102-3

Location of headquarters

Our headquarters is located at 12500 TI Boulevard, Dallas, Texas 75243.

102-4

Location of operations

See our global map on the TI at a glance section of our website.

102-5

Ownership and legal form

For information about our ownership structure, please refer to our SEC Form 10-K, Part I.

102-6

Markets served

For information about the markets we serve, see SEC Form 10-K, Part I, pages 4-5.

102-7

Scale of the organization

On Dec. 31, 2019, TI had 29,051 employees and manufacturing, design and sales operations in more than 30 countries. We have tens of thousands of products andgenerated $14.38 billion in revenue (read more at SEC Form 10-K, Part I, Item 1, pages 2-12). The percentage of revenue by region was Asia (60%), Europe (19%), theAmericas (13%), Japan (6%) and other (3%). We also have 10 wafer fabrication sites and seven assembly/test sites. Read more at SEC Form 10-K, Item 8, Note 1,
page 30).

102-8

Information on employees
and other workers

Please see employee data in the Workplace section of the 2019 TI Corporate Citizenship Report. TI does not track the number of employees by employment contract
and our part-time workforce is negligible. Full-time employees do the majority of work and are supported by supplemental contractors when needed. The number ofthese contractors varies throughout the year.

102-9

Supply chain description

See Supply chain in the Responsible business practices section of the 2019 TI Corporate Citizenship Report and our Anti-human trafficking statement. Roughly 80%
of our procurement is done with approximately 300 suppliers, of which about 180 are critical to supporting semiconductor manufacturing. We define critical suppliersas those core to the supply strategy of a category procurement team and could cause a major disruption to make or design output. When needed, we outsource the
manufacturing of wafers or product assembly and testing.

102-10Significant changes to the organizationand its supply chain

Over the past several years, we have been investing in new capabilities and evolving our distribution network to better align with our strategy to establish closer, more
direct relationships with our customers. This gives us better insight into customer needs and allows us to provide better service and greater assurance of supply,
among other benefits. As we expand these direct customer relationships over the next several years, we will have less business flowing through the distribution
channel; therefore, we will require fewer distributors. TI made no significant changes to its size, structure, or ownership in 2019 and revenue decreased by 9%. For
more information, see SEC Form 10-K, Item 1, page 5.

102-11

Precautionary principle or approach

To reduce or avoid negative impacts on the environment, we apply precautionary principles in many aspects of our operations where scientific evidence is insufficientor uncertain. For example, our aggressive chemical and material screening process assures that we do not use materials whose hazards are not understood and able
to be controlled.

102-12External initiatives

Our governance documents guide our business practices, which apply to all sites worldwide and evolve based on changing business needs. We also voluntarily
subscribe to industry and international standards that seek to improve companies’ environmental, social and governance performance, such as the International
Organization for Standardization (ISO). These include the GRI’s reporting framework to measure and report our citizenship progress; the Responsible Business
Alliance (RBA), which has a specific code of conduct to help ensure worker safety, protection, fairness, environmental responsibility and business efficiency in theelectronics industry; the U.S. Green Building Council’s LEED Green Building Rating System to design and operate efficient and low-impact manufacturing facilities; andthe CDP, which helps investors, companies and cities act to build a sustainable economy.

102-13

Membership of associations

TI belongs to many associations with which it works on various policy objectives. We are more active in some organizations than others and do not work on all
issues with every association and may not align on all positions. We also collaborate with other outside groups and coalitions, such as the RBA and Semiconductor
Industry Association, to advance policies that drive growth, promote competitiveness and support TI’s shareholders, customers, employees and the communities inwhich we operate.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

44

Indicator Description

Disclosure102-14

Statement from senior decision-maker

Read about our commitment to citizenship and sustainability in the CEO message of the 2019 TI Corporate Citizenship Report.

102-16

Values, principles, standards and norms TI published its first ethics guide in 1961, which is a historic foundation of ourbusiness practices. We recently launched Living our values – TI’s Ambitions,of behavior
Values and Code of Conduct, which describes our:• Ambitions: what we desire and are determined to achieve• Values: principles that define who we are and how we behave• Code of conduct: standards we commit to uphold• Policies: rules to govern our decisions and behavior
TI’s Living our values – TI’s Ambitions, Values and Code of Conduct wasdeveloped by a core group of leaders with oversight, input and direction by ourmanagement committee and executive officers. It is signed by Rich Templeton,
our chairman, president and CEO and all TI leaders are accountable for
conducting business in accordance with it. Before this code was communicatedcompany-wide, our CEO and senior vice president of HR held about 20
roundtables with top 500 leaders to equip, train and set expectations for how
leaders lead and conduct business in accordance with our code of conduct. It isavailable in multiple languages.

TI at a glance

102-18Governance structure

Read more about TI’s governance structure, roles and responsibilities on our governance overview webpage.

Our commitment andreport overview

102-30Effectiveness of risk
management processes

See Risk management and business continuity in the Responsible business practices section of the 2019 TI Corporate Citizenship Report for more information about
our risk management and business continuity practices.
TI takes a holistic approach to risk management to build a culture that minimizes risk exposures and protects shareholder value. TI’s Audit Committee has oversight
responsibility for financial risk (such as accounting, finance, internal controls and tax strategy). Oversight responsibility for compliance risk is shared by our board of
directors committees.
All TI organizations and teams are expected to identify potential risks to our employees, business practices and supply chain, as well as the environment. They
conduct formal risk assessments and invest in controls that benefit our company, our customers and our communities. Findings are then validated and monitored until
actions have been completed. Each quarter, we report risks and mitigation plans to senior management. Risks also are disclosed annually in our SEC Form 10-K.
TI also has an independent Business Continuity Steering Team that oversees the company’s business continuity strategy, policy, program and plans. Team members
meet regularly to discuss risks, best practices and implementation plans and take a lead role if disruptive events occur. They also provide an annual update to the CFO.
Customers may contact www.ti.com/support or their account managers with any risk-related questions, concerns or grievances.

102-40

List of stakeholder groups

TI’s stakeholders include employees, customers, shareholders, communities where we have operations, academia, public officials, trade associations, regulatory
agencies, non-governmental organizations, analysts, investors, suppliers, contractors, TI retirees and potential employees.

102-41

Collective bargaining agreements

Employees at any of our global operations have always had the freedom to associate and/or right to collective bargaining as provided by local statutes; therefore, we
do not track the percentage of employees covered by such agreements.

102-42

Identifying and selecting stakeholders

We engage with stakeholders who directly influence or have an interest in our operations.

102-43

Approach to stakeholder engagement

We tailor our dynamic engagement strategies, methodologies and communications to the unique interests of the people and organizations that directly influence or
have an interest in our operations. Engagement mechanisms generally include meetings, calls and emails and vary in frequency. Our senior leaders regularly sharestakeholder feedback on environmental, social and governance matters with the executive team and the board of directors. Stakeholders can ask questions or shareopinions through our website, e-mail address and social media channels. Accounting- and audit-related topics are addressed through our accounting and audit
hotline. All accounting- and audit-related inquiries received on the hotline are reported to the chair of the Audit Committee of our board of directors.

Table of contents
CEO letter

Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

We use a variety of mechanisms to measure the completion of training andcompliance with Living our values – TI’s Ambitions, Values and Code of Conduct.
We measure, for example:• Completed training percentages and survey results.
• Ethics and compliance cases.
• Industry practice and peer benchmarking.
Responsibility for Living our values – TI’s ambitions, values and code of conduct
begins with Chairman, President and CEO Rich Templeton and our board of
directors. Leaders at every level of the company are accountable for modeling
our ambitions and values, upholding our code of conduct and policies, andholding their organizations accountable. Our chief compliance officer, senior
vice president of human resources, and ethics and compliance directors workwith other key stakeholders to oversee and coordinate ethics and complianceprograms across TI. They periodically share updates and results with the board of
directors’ audit committee, senior managers and executives to drive continuousand effective improvements.

45

Indicator Description

Disclosure102-44

Key topics and concerns raised

102-45

Entities included in consolidated
financial statements
Defining report content
and topic boundaries

Through informal engagement with stakeholders in 2019, we learned their top questions or issues were related to diversity and inclusion, energy use and renewableenergy, water conservation and labor and human rights.
TI has two reportable segments: Analog and Embedded Processing. We report the results of our remaining business activities in Other (see SEC Form 10-K, Part I,
Item 1, pages 2-3). This report covers environmental, social and governance topics for all TI-owned entities and facilities that are included in our financial statements.
To determine the focus of this report, we formally assess stakeholders biannually and consult with our Citizenship Steering Team (CST). The CST is a cross-functionalgroup of business leaders who contribute to and execute TI’s citizenship strategy. Every two years, TI assesses inputs from multiple stakeholders, including senior
management, employees, customers, suppliers, investors, community leaders and industry representatives to identify and better understand what our stakeholders
believe are our most significant environmental, social and governance impacts. This feedback helps our company to respond to stakeholder concerns proactively. It
also guides our corporate citizenship reporting by focusing on content on topics that matter most. The assessment is a four-part process:1. Identify – We establish a universe of issues based on their applicability, stakeholder interest, industry challenges, what peers are focused on as well assustainability trends. Members of our CST review and refine these topics before the assessment.
2. Prioritize – We prioritize topics based on stakeholder feedback.
3. Validate – We review and discuss findings and balance opposing views with our CST and leadership team.
4. Integrate – We focus resources to manage the topics of most importance and transparently disclose progress being made in our Citizenship Report.

102-46

Table of contents
102-47

List of material topics

Giving and volunteering

102-48

Restatements of information

Global Reporting
Initiative index

102-49Changes in reporting

The 2019 TI Corporate Citizenship Report tells our citizenship story and elaborates on our goals and progress in key focus areas. We have restructured the informationfrom last year to integrate our narrative, goals and results more clearly while still reporting in accordance with the Global Reporting Index (GRI) framework. For the2019 report, we still believe GRI is relevant, but will continue to consider other frameworks and methodologies for future reports.

102-50

Reporting period

The reporting period covers the calendar year 2019.

102-51

Date of the most recent report

Our 2018 report was released in May 2019.

102-52

Reporting cycle

We release an annual citizenship report.

102-53

For questions about citizenship at TI or this report, contact citizenshipfeedback@list.ti.com.

102-55

Contact point for questions regarding
the report
Claims of reporting in accordance with
the GRI Standards
GRI content index

102-56External assurance

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

102-542019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

In 2019, we completed a stakeholder assessment to prioritize environmental, social and governance topics that are most important to TI and our stakeholders. The
assessment included global peer benchmarking and surveying of managers/employees, suppliers, customers, community leaders and investors. After examining morethan 50 issues, we categorized issues of importance to both TI and our stakeholders. Top topics include:• Health and safety• Environmental impact (air and greenhouse gas emissions, energy
consumption/use of renewable sources, water/wastewater)• Business continuity• Responsible manufacturing• Supply chain responsibility (including labor and human rights)• Materials management• Conflict minerals• Citizenship (education engagement, volunteering and giving)• Ethics• Diversity and inclusion• Information protection• Our employees (recruitment and retention, development, compensation • Public policy
and work-life balance and resources)
Any restatements of information are included in footnotes within our 2019 Corporate Citizenship report.

This report has been prepared in accordance with the GRI Standards: Core option.
This GRI Index contains information and data about TI’s topic topics and directs readers to more information where applicable.
We perform extensive internal due diligence to ensure the accuracy of the information and data presented in this report. We currently do not seek independent
assurance of environmental, social or governance data. However, EY annually audits financial records of the TI Foundation.
46

ECONOMIC STANDARDS
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

Learn more about TI’s financial oversight and performance in our 2019 Annual report and proxy statement and SEC Form 10-K.

201-1

Direct economic value generated
and distributed

Our Annual Report provides information about our financial performance. For our philanthropic contributions, see the Giving and volunteering section of the 2019 TI
Corporate Citizenship Report.

201-2

Financial implications and otherrisks and opportunities due toclimate change

We address implications of climate change by evaluating risks related to the changing climate such as severe weather, water availability, flooding andenvironmental threats. These broader climate change risks are evaluated by site and region. We invest capital in engineering controls that reduce
operational and environmental impacts.
Each manufacturing site’s financial value is based on product revenue generated and its assets. Any potential revenue loss associated with a climatechange or severe weather event generates a potential business interruption loss, which can be offset in part by insurance. TI’s Risk Management andBusiness Continuity office reports companywide risks, such as those associated with climate change, to our chief financial officer.

201-3

Defined benefit plan obligations andother retirement plans

We have various employee retirement plans, including defined contribution, defined benefit and retiree health care benefit plans. Contributions to these plans meet or
exceed all minimum funding requirements. For more information, see SEC Form 10-K, Item 8, Note 8, pages 44-49: Post Retirement Benefit Plans.
For all U.S. employees (for those who choose to opt into and contribute to a 401(k), we match 100% of their contributions, up to 4% of annual eligible earnings. We
match half of that for employees who also contribute to our pension plan. Also, eligible and highly compensated employees can defer a portion of their base pay, yearend bonus and profit-sharing.
We offer a global profit-sharing program that rewards all eligible TIers for contributing to our financial success. Some countries, such as France and Mexico, havestatutory requirements for their local profit-sharing programs, which we meet.

201-4

Financial assistance received
from the government

TI receives tax-benefit incentives from federal, state and local governments around the world. These incentives are commonly available to manufacturing companies
with investments in equipment and facilities, employment and R&D. See SEC Form 10-K Part II, Item 8, Note 4, pages 39-41 and our Tax Policy for additional details.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering

Market presence

Global Reporting
Initiative index

Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Employees in the Workplace section of the 2019 TI Corporate Citizenship Report to learn more about our management approach. Our human resources (HR)leaders are responsible for developing compensation and hiring programs, protocols and processes. The Compensation Committee of TI’s board of directors
oversees compensation practices for executive personnel. The senior vice president (SVP) of HR and vice president (VP) of Compensation and Benefits oversee
employee compensation. This oversight ensures compliance with relevant regulations and that awards are consistent with our values and tailored to the markets inwhich we operate.
We conduct an in-depth analysis of our compensation system to look for any unexplained pay discrepancies and the reasons behind them. If we find disparities, we
explore if factors such as market pay ranges, performance or experience support the difference; and if unjustified, we adjust.
We offer several channels through which TIers and supplemental contractors can submit questions, concerns or grievances without fear of retaliation, including theirsupervisor, HR representative or anonymously through the Ethics and Compliance Office.

202-1

TI does not maintain a standard entry wage for every country; however, we have verified that we are paying employees above the local minimum wage in every
country in which we operate. We compensate each employee based on their experience, roles and responsibilities regardless of gender, race, ethnicity or otherprotected characteristics.

Ratios of standard entry-level wage
by gender compared to local
minimum wage

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

47

Indicator Description

Disclosure

202-2

TI's strategy is to hire the best and brightest individuals to work at our company. We hire 99% of our employees in senior positions from the communities where
we operate.

The proportion of senior management
hired from the local community

Procurement practices
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Supply chain management in the Responsible business practices section of the 2019 TI Corporate Citizenship Report to learn more about our management
approach. Management of our supply chain is led by our VP of Worldwide Procurement and Logistics, who reports directly to our CFO. Together, they oversee supply
chain policies, performance and risk management. Our director of supply chain responsibility oversees supplier social responsibility and manages supplier diversity.

204-2*

Table of contents
CEO letter
TI at a glance

The proportion of spending on U.S.
We spent 10% of our U.S. procurement budget with minority and women-owned enterprises in 2019, exceeding our 8.5% goal.
minority and women-owned enterprises

Anti-corruption
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Ethics in the Responsible business practices section of the 2019 TI Corporate Citizenship Report and Living our values – TI’s ambitions, values and code of
conduct to learn more about our management approach to anti-corruption.
We assess all our manufacturing sites for corruption and ethics risks annually using the RBA’s self-assessment tools. Additionally, we leverage an industry-leading anticorruption and third-party management system to assess our external engagements.

205-1

Operations assessed for risks
related to corruption

TI operates in China, India, Mexico, Malaysia, the Philippines and Russia/Eastern Europe, which are among countries considered at higher risk for corruption. The
semiconductor industry, however, is relatively low risk compared to construction, extractive or other industries in which conducting business requires considerable
interaction with government officials. We have policies in place and conduct specific, live training in the high-risk countries to address and mitigate these risks. We
regularly assess both our worldwide manufacturing operations and our suppliers for risks related to corruption.

205-2

Communication and training about anti- TI provides ethics and compliance awareness training to all employees, vendors and third parties, including on anti-corruption topics. The training programs andcorruption policies and procedures
related efforts are periodically assessed and revised to reflect legal changes and to support continuous compliance improvement.

205-3

Confirmed incidents of corruption andactions taken

Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Although recorded for internal review and action, we do not currently report such information to the public as it is confidential. We work to resolve any allegations
related to corruption successfully and to take appropriate remedial measures.

Anti-competitive behavior
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Ethics in the Responsible business practices section of the 2019 TI Corporate Citizenship Report and Living our values – TI’s ambitions, values and code of
conduct to learn more about our management approach to anti-competitive behavior.

206-1

For material legal proceedings involving TI, see SEC Form 10-K, page 15.

Legal actions for anti-competitive
behavior, anti-trust andmonopoly practices

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

48

ENVIRONMENTAL STANDARDS
Environment, safety and health (ESH)
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See ESH in the Sustainability section of the 2019 TI Corporate Citizenship Report to learn more about our management approach. We evaluate potential positive and negative
impacts that a proposed project may have on a community by conducting environmental impact assessments before site selection.
Our ESH management system facilitates the planning, execution, evaluation and management oversight of activities and strategies. Programs include extensive chemical andmaterial screening, material sourcing, waste profiling and responsible recycling and disposal.
To ensure our internal management system is effective, the Worldwide ESH Compliance Support Team and independent third parties perform audits at each facility at least
every three years; in interim years, the facilities perform self-assessments. They examine compliance with legal and TI standards and training effectiveness. Additionally, we:• Survey employees and external stakeholders.
• Conduct legally required inspections and monitor incident rates.
• Benchmark against the RBA’s self-assessment questionnaire and its Code of Conduct, as well as against peers and members of the Semiconductor Industry Association.

Table of contents

We communicate gaps and best practices to other sites, so similar issues will not occur. Each manufacturing site also reports performance using a scorecard that measuresenergy use, chemical reduction and water efficiency. We share scorecards internally for transparency and best-practice awareness, and as an accountability mechanism. No
significant adjustments have been made to our corporate-level ESH management system due to audit findings.
Our ESH governance structure includes:• Audit Committee, board of directors – Oversees internal controls, compliance and performance.
• CFO/SVP of Technology and Manufacturing Group – Establishes and maintains effective ESH leadership, strategic direction and effective communication.
• VP, Worldwide Facilities – Holds TI accountable for providing a safe, secure work environment.
• VP, Worldwide ESH – Provides leadership, guidance and direction of ESH programs worldwide.
• Worldwide ESH organization – Monitors performance and compliance.
• Site/building ESH support – Advises and consults in all ESH activities, develops and documents programs to ensure compliance and assesses risks and controls.
• Employees and supplemental contractors – Follow applicable ESH regulations, internal policies and standards, work area or assignment procedures, and take ownership of
their safety and that of their coworkers.
We require 100% of our employees and supplemental contractors at all TI manufacturing and assembly/test sites to adhere to our management system requirements. Other
personnel not managed by TI are responsible for following their companies’ ESH management procedures as well as applicable regulatory requirements.
We offer several channels through which internal and external stakeholders can submit ESH questions, concerns or grievances. All employees and supplemental contractors
have “stop work” authority to remove themselves from work situations that they believe could cause injury, illness or environmental harm. They also can contact theirsupervisor, site ESH staff or anonymously contact the TI Ethics Office. Customers may contact www.ti.com/support and all other ESH-related inquiries can be directed to
citizenshipfeedback@list.ti.com.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Materials
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Materials management the Sustainability section of the 2019 TI Corporate Citizenship Report and ESH disclosure of management approach in this GRI Index tolearn more about our management approach. We track materials used at each site as well as progress against consumption goals.

301-2

Most of the purchased materials required to manufacture our products are chemicals. Although most chemicals used in semiconductor processing must be ultrapure, we collect and reuse oxide slurry at some of our sites. Where feasible, we also collect waste acids from our processes for reuse in abatement equipment.

Recycled input materials used2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

49

Indicator Description

Disclosure301-3

Currently, we are unable to determine the percentage of products reclaimed by product category by customers or end-users. TI participates in various recycling
programs but cannot control how customers handle the semiconductors they place in their products, nor their products’ end-of-life disposition. We provide detailed
information about the substances used in their components so that customers can make informed decisions about end-of-life disposal.

Reclaimed products and theirpackaging materials

EnergyTable of contents

Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Energy use in the Sustainability section of the 2019 TI Corporate Citizenship Report and ESH disclosure of management approach in this GRI Index to learn more
about how we manage energy. We track energy use at each site as well as progress against consumption goals. Consumption data are calculated from sites that wefinancially control and that are larger than 50,000 square fee.

302-1

Energy consumption
within the organization

See Energy use in the Sustainability section of the 2019 TI Corporate Citizenship Report. TI does not sell any energy outside of our company.

302-3

Energy intensity

See Energy use in the Sustainability section of the 2019 TI Corporate Citizenship Report. Our energy intensity ratio is 0.38. When calculating energy intensity, we divide
the total energy consumption by the number of wafer chips (not including external manufacturing) produced each year). We then compare this to the 2005 baseline toreport a ratio, which is based only on internal energy consumption. The energy types included in the ratio are natural gas, gasoline, diesel, electricity, propane, fuel oil,liquid petroleum gas and district heating.

302-4

Reduction of energy consumption

See Energy use in the Sustainability section of the 2019 TI Corporate Citizenship Report. Energy conservation savings are based on electricity, fuel and heating
projects. The basis for calculation is the estimated annualized reduction for each project and the total is reported as the sum of all the annualized savings estimates.
For capital investments over $50,000, the savings also are validated by taking additional measurements on pre- and post-project consumption.

302-5

Reductions in energy requirements ofproducts and services

The energy required to operate a chip for a year can be as little as 0.15 watt-hours. TI also works to reduce energy use in our products and is often able to achieve a
reduction of 7% over prior designs when implementing a new design that performs an equivalent function.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Water
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report and ESH disclosure of management approach in this GRI Index
to learn more about water management. Our global water management standard outlines requirements of wastewater programs, sewage treatment programs,
stormwater pollution prevention and water reduction activities at each TI site.
Our VP of worldwide ESH oversees TI’s water strategy, and site leaders monitor water use, compliance to quality standards and progress against consumption goals.
We also monitor:• Water restrictions and areas of water stress.
• Wastewater discharges to ensure compliance is maintained.
• Quarterly progress against water reduction goals.
TI ensures our management systems operate effectively by using online monitoring tools to track trends. We also routinely collect and analyze samples and conductboth internal and external audits. Additionally, we:• Visually inspect wastewater treatment plants multiple times a day to ensure they are operating properly and are not leaking.
• Periodically clean the plants and inspect the treatment basins for integrity.
• Hire trained or certified operators as required.

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Indicator Description

Disclosure

303-1

Interactions with water
as a shared resource

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report to learn more about how TI interacts with water and works withstakeholders to water as a shared resource. There have not been water impacts directly attributed to our discharges and runoff at any TI site. We achieve this by
maintaining compliance with discharge limits in our permits, following TI standards and ensuring sites follow good housekeeping practices to minimize exposure towater pathways.
All of TI’s main manufacturing and assembly/test facilities set annual water reduction goals based on projects that they have identified as part of our ongoing energy
and water reduction program. Sites decide which projects to pursue based on a variety of factors, including economic payback and impact on process systemstability and reliability. Public policy and water stress factor into these decisions indirectly. Both public policy and water stress impact the cost and availability of water,which makes water reductions more attractive from a payback standpoint or necessary for system reliability.

303-2

Management of water
discharge-related impacts

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report to learn more about wastewater management. Minimum quality
standards for effluents are set by local regulatory agencies and all TI sites manage to permissible limits. Some regulators incorporate sector-specific standards to set
their requirements.
We consider and monitor all receiving water bodies to ensure no negative impacts from our effluents and discharges. Our internal water management standard
includes guidelines that ensure compliance with wastewater, stormwater and sewage discharge permits and other requirements. Sites monitor water quality and haveprocedures to manage spills or other abnormalities.
We report wastewater discharges and the portion of the total water that is discharged through regulated wastewater treatment points to local, state, federal andinternational regulatory agencies.

303-3

Water withdrawal

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report. Water is supplied from municipal sources and groundwater, plusa small amount of collected rainwater at our Richardson fabrication site in Texas. Consumption data are calculated from water utility bills at sites that we financiallycontrol and are larger than 50,000 square feet.

303-4

Total water discharge and priority
discharges of concern for which
discharges are treated

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report for discharge data. Federal, state or local regulators create
wastewater permits that define and determine priority substances that must meet discharge limits. We comply with these limits by treating water in onsite treatment
plants, separating concentrated metals and solvents from waste streams and through other measures. TI did not receive any notices of violation for non-compliancewith discharge limits in 2019.
To anticipate substances that may be regulated in the future, TI participates in several industry workgroups. Together, we research and assess data of chemicals usedin production using both standard sampling methodologies and analytical methods as well as those developed by member companies.

303-5

Water consumption and storage

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship Report for consumption and storage data. Consumption data is typicallycalculated from total water usage as well as site-specific factors, such as evaporation, irrigation, boiler use or cooling tower use. We verify this data by examining sitewater balances and discharge flow rates from our wastewater and sewage treatment systems. TI reports water usage data to local, state, federal and international
regulatory agencies.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Biodiversity
Indicator Description

Disclosure

304-1

See Biodiversity in the Sustainability section of the 2019 TI Corporate Citizenship Report.

Operational sites owned, leased,managed in, or adjacent to protectedareas and areas of high biodiversity
value outside protected areas

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Emissions
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Air emissions and Greenhouse gases in the Sustainability section of the 2019 TI Corporate Citizenship Report and ESH disclosure of management approach inthis GRI Index to learn more about how we manage emissions.
Our VP of Worldwide Facilities oversees climate change and air quality strategies. Our GHG strategy team – comprising internal environmental leaders and government
relations staff, as well as legal, air quality, chemistry and energy experts – coordinates and manages climate change initiatives. Our business units and government
relations organization also monitor government initiatives and incentives, as well as business opportunities. We also expect TIers to achieve targets appropriate to theirfunction, including GHG reduction goals.
We measure scope 1 and 2 GHG emissions from TI-owned or leased sites larger than 50,000 square feet, which accounts for 97% of our total square footage andmore than 99% of our equivalent carbon dioxide (CO2e) emissions. We do not report data from subcontractors, supplier manufacturing facilities or facilities smaller
than 50,000 square feet.
We conduct routine monitoring and audits to comply with air quality and GHG regulations and reporting requirements worldwide.

305-1

Direct (Scope 1) GHG emissions

See Greenhouse gases in the Sustainability section of the 2019 TI Corporate Citizenship Report. The gases included in the data calculation include carbon dioxide(CO2 ), methane (CH4 ), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6 ) and nitrogen trifluoride (NF3 ).
We calculate Scope 1 GHG emissions using relevant guidelines from the Intergovernmental Panel on Climate Change and the U.S. Environmental Protection Agency(EPA), along with published emission factors. These include, but are not limited to, the EPA’s Mandatory Reporting Rule, IPCC and eGRID. Our methodology includes
accepted quantification methods, emission factors and global warming potential.

305-2

Energy indirect (Scope 2) GHG
emissions

See Greenhouse gases in the Sustainability section of the 2019 TI Corporate Citizenship Report and our response to 305-1. We have not made any significant
changes in emissions that triggered recalculations of base year emissions. Our source of the emissions factors and the global warming potential rates used is the
EPA’s GHG MRR Final Rule. Scope 2 electricity emission factors are from the U.S. EPA eGRID for U.S. sites and the International Energy Agency for all internationalsites. All calculations for scope 2 emissions follow either US EPA MRR or IPCC Tier 2.

305-4

GHG emissions intensity

Our GHG emissions intensity ratio in 2019 was 0.36. We calculate this ratio using both scope 1 and scope 2 emissions, which include CO2, CH4, N2O, PFCs, SF6 andNF3, as the numerator and the number of chips produced within TI as the denominator. This ratio is then reported as a normalized value, where 2005 is 1.

305-5

Reduction of GHG emissions

TI's global scope 1 and scope 2 emissions decreased by 10.3% from 2018 to 2019 due to upgrading our processes to more efficient systems, a global industrywide
reduction in loadings and the sale of our fabrication site in Greenock, Scotland. See greenhouse gases in the Sustainability section of the 2019 TI Corporate
Citizenship Report for more information about emission reductions.

305-6

Emissions of ozone-depleting
substances (ODS)

A few refrigerant gases are stored for maintaining refrigeration systems for our chillers. Most R-22 refrigerant equipment has been phased out; however, in 2019, 177
lbs. of R-22 refrigerant was used due to a chiller leak.

305-7

See air emissions in the Sustainability section of the 2019 TI Corporate Citizenship Report for our U.S. emissions data.
Nitrogen oxides (NOX), sulfur oxides(SOX) and other significant air emissions

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Effluents and waste
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

Information about how we manage effluents and waste can be found in the Sustainability section of the 2019 TI Corporate Citizenship Report, as well as in the Water
and Material disclosure of management approach sections of this GRI Index.

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Indicator Description

Disclosure

306-1

Water discharge by qualityand destination

See Water and wastewater in the Sustainability section of the 2019 TI Corporate Citizenship report for water discharge data. We treat water before discharge by
neutralizing pH levels, using bio-treatment for domestic waste, and segregating other waste, solvents and metals. Some acid waste streams are segregated for either
disposal, recovery or reuse. Water is not reused by other organizations, but our Richardson fab collects and reuses rainwater for irrigation.

306-2

Waste by type and disposal method

See Material management in the Sustainability section of the 2019 TI Corporate Citizenship report.

306-3

Significant spills

Zero significant spills occurred in 2019.

306-4

Transport of hazardous waste

We thoroughly vet and contract with established waste management firms to remove, transport and properly dispose of hazardous waste. Though the regulatory
bodies in the countries where we operate differ on what materials they classify as hazardous waste, we do not treat, process, dispose of, import or export hazardous
waste generated from our facilities. We also do not ship hazardous waste, as defined in the Basel Convention, across international boundaries.

Environmental compliance

Table of contents

Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See ESH in the Responsible business practices section of the 2019 TI Corporate Citizenship Report and in the ESH disclosure of management approach section ofthis GRI Index to learn more about how we manage environmental compliance.
Oversight of compliance is led by:•A udit Committee, board of directors – Oversees compliance efforts, risk assessment processes, and internal controls and performance.
•C FO – Ensures capital allocation aligns with compliance strategies as well as business practices.
•S enior executives – Establish and maintain strategic direction; ensure adherence to customer and regulatory requirements; monitor ESH risks; lead sustainability
and ESH initiatives; and communicate performance expectations to the workforce and supplemental contractors.
•W orldwide ESH and Procurement and Logistics organizations – Monitor ESH and supply chain compliance.
•S ystem and strategy teams – Conduct assessments to maintain compliance.
•S ite leaders – Develop and document programs to ensure compliance and assess risks and controls.
•E mployees/supplemental contractors – Follow applicable regulations, internal policies and standards, and work area or assignment procedures.

307-1

TI received zero fines or sanctions for environmental noncompliance in 2019.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Non-compliance with environmental
laws and regulations

Supplier environmental assessment
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Supply chain management in the Responsible business practices section of the 2019 TI Corporate Citizenship Report for more information about ourmanagement approach.

308-2

TI works with thousands of suppliers worldwide and communicates our expectations for responsible environmental performance. We assess strategic and high-risk
suppliers against these and other criteria set by the RBA’s Code of Conduct – as well as our policies and standards. In 2019, we evaluated more than 179 supplierswith 300 factory locations; our findings revealed no significant negative environmental impacts or issues of concern. As a result, no relationships were terminated.

Significant negative environmental
impacts in the supply chain andactions taken

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SOCIAL STANDARDS
Employment
Indicator Description

Disclosure103-1 to Disclosure of management approach103-3

See the Workplace section of the 2019 TI Corporate Citizenship Report to learn more about our management approach. Our HR leaders are responsible fordeveloping the programs, protocols and processes that are essential for effective productivity. Specific responsibilities include:•E xecutive compensation: The Compensation Committee of TI’s board of directors oversees compensation practices relating to key personnel.
•H R strategy: TI’s SVP of HR establishes and maintains strategic direction and effective communication, and reports to our CEO.
•R
 ecruitment: The SVP of HR and director of Talent Acquisition oversee recruitment efforts.
•R etention: Overall employee retention is the responsibility of managers, with support from HR. Site teams are responsible for implementing multi-faceted andtailored retention programs, and for complying with site-specific employment laws.
•D iversity: The director of Diversity and Inclusion oversees these programs.
•D evelopment: The director of Talent Development is responsible for workforce training and development.
We offer several channels through which TIers and supplemental contractors can submit questions, concerns or grievances without fear of retaliation, including
their supervisor, HR representative or anonymously through the Ethics Office. We also have multiple avenues to report work-related injuries, illnesses, hazards andrisks to supervisors.
Labor laws and regulations vary greatly outside the U.S. and many countries where TI operates offer government-provided benefits and other related programs.
For example:•O utside the U.S., recruiting efforts and programs are unique by country and region, based on local needs. We recruit from the states and countries where we
operate, particularly for entry-level and managerial positions, and then train employees for more advanced or senior roles.
•W ork-life initiatives vary globally, depending on specific work cultures and government-subsidized programs. To refine work-life program offerings, we engage
employees and audit our programs annually. This helps us close gaps, remain competitive within the industry and improve services where needed.

401-1

New employee hires and employee
turnover by age, region and gender

TI hired 2,140 employees (excluding interns) in 2019. See retention in the Workplace section of the 2019 TI Corporate Citizenship Report for employee turnover data.

401-2

Benefits provided to full-time employees Full-time U.S.-based employees and those who work an alternative work schedule (20 to 39 hours per week) are eligible for all benefits, including medical, prescription,that are not provided to temporary or
dental, vision, employee assistance and income protection. Temporary or part-time employees on alternative work schedules less than 20 hours per week are notpart-time employees
eligible for benefits.

401-3

Parental leave

We offer paid parental leave to 100% of part- and full-time male and female U.S. employees who are eligible for benefits. We do not track return-to-work and retention
rates after parental leave. Outside the U.S., programs vary depending on the government programs offered.

401-4*

Employee tenure at the company byaverage years of service

The average employee tenure is as follows:• Less than 10 years: 50%• 10-20 years: 24%• More than 20 years: 26%

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

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Labor/management relations
Indicator Description

Disclosure103-1 to Disclosure of management approach103-3

See the Workplace section of the 2019 TI Corporate Citizenship Report and the Employment disclosure of management approach section of the GRI index, on theprevious page, to learn about our management approach. Our HR leaders are responsible for developing the programs, protocols and processes that are essential for
effective employee engagement and productivity.
To keep communication channels open and gather and share business information with our teams, we use a variety of communications tools and platforms tofacilitate open dialogue, share our expectations and reinforce our values. Our managers are the first to engage TIers, so we invest in their development and training tohelp them be stronger and foster a mentality that “we are in this together.”In the U.S., TI’s policy is to provide a minimum of one week’s notice regarding shift changes and provides at least 60 days’ notice (or pay in lieu of notice) for
reductions in force. Outside the U.S., TI adheres to local labor laws.

402-1

Minimum notice periods regarding
operational changes

Occupational health and safety

Table of contents

Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Safety and health in the Workplace section of the 2019 TI Corporate Citizenship Report and the ESH disclosure of management approach section of this GRI
Index to learn more about our ESH management approach.
The Audit Committee of TI’s board of directors oversees the management of the health and safety of our employees, supplemental contractors and visitors to our
workplace. Our management approach includes several different elements:• Our manufacturing sites have formal ESH committees, which include managers, ESH specialists and TIers. They work with site managers to oversee health andsafety management systems.
• Formal ESH committees at our manufacturing sites, which include managers, ESH specialists and TIers, oversee health and safety management systems.
• Manufacturing and Assembly/Test Safety Councils are comprised of ESH and ergonomics representatives who drive a safety-focused manufacturing culture
within our facilities.
• Leadership at all levels support and reinforce consistent safety practices, including training and reporting.
• Employees are responsible for completing applicable training and keeping their work environment healthy and safe.
To reinforce TI’s commitment to the safety of our employees, we provide ongoing training so that employees prioritize safety and speak up about any potential
hazards. Employees know to correct or report unsafe behaviors and conditions, follow procedures and wear personal protective equipment. We reinforce expectations
regularly through safety campaigns, articles, posters and reminder emails.
Every year, our ESH leadership team reviews key outcomes of the organization and determines areas of focus and opportunities for improvement. Through routine
programs, facility self-assessments and audits, we assess potential safety and health risks and make corrections and improvements per our management system’s
processes, risk assessments and activities. All incidents are documented and reviewed by a central record-keeping review panel, who is tasked with ensuring thequality and accuracy of each injury investigation and its associated documentation.

403-1

TI’s safety and health management system – which is third-party certified to ISO 45001 requirements for occupational health and safety – identifies and controls
hazards and risks, complies with applicable laws and regulations and investigates incidents and track actions through closure. The management system also provides
programs, policies and tools that keep our workplace safe.
We use the management system to record performance data; identify trends, weaknesses and hazards; and take steps to remedy flaws. It also ensures the qualityof safety and occupational health services and facilitates workers’ access to them. Through routine programs, facility self-assessments and audits, we regularly
assess potential safety and health risks and make corrections and improvements. All incidents are documented in an electronic incident management system and arereviewed by a central recordkeeping review panel that is tasked with ensuring the quality and accuracy of each injury investigation and its associated documentation.

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

Occupational health and safety
management system

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Indicator Description

Disclosure

403-2

Hazard identification, risk assessment
and incident investigation

All TI sites are covered by an industrial hygiene program that is designed to identify, evaluate and control potential workplace hazards. We periodically conduct surveys
and sampling of work areas, analyze and track this data to identify hazards and determine the risk of injury or illness. We manage TIers’ mental and physical healthholistically and create monitoring plans to assess progress. Collecting health data also helps us tailor interventions depending on our employees’ unique needs.
Following all investigations, site ESH leaders communicate lessons learned and corrective action plans to other sites and groups so others can avoid similar issues.

403-3

Occupational health services

See Safety and health in the Workplace section of the 2019 TI Corporate Citizenship Report to learn more about occupational health services. All TI sites are coveredby an industrial hygiene program that is designed to identify, evaluate and control potential workplace hazards.
The resources we provide TIers to take control of their health include free on-site immunization and preventive screening programs, fitness and nutrition programs,
employee assistance programs, and counseling and education services. These provide immediate feedback to help TIers understand any lifestyle changes that areneeded to improve their health. We support this effort at work through walking, weight management and smoking-cessation counseling, and our cafeterias offer
healthy food choices.
Our individual health management service provides coaching and oversight to improve employee well-being. It is offered to TIers who have experienced a significant
medical event, have extended work absences, or who are dealing with multiple diagnoses, treatments and providers. Our benefit advocacy service helps estimate thecosts of medical procedures and locate affordable and quality health providers as well.
We periodically conduct surveys, sample work areas for potential hazards, and investigate the root causes of injuries or illness. We also offer resources to help TIers’
manage their mental and physical health and create monitoring plans to assess progress. Collecting health data also helps us design custom health improvement
programs, depending on our employees’ unique needs.

403-4

Worker participation, consultation andcommunication on occupational healthand safety

TI sites have health and safety committees comprised of ESH staff, site management and employees that meet regularly regarding site-specific needs. We also
consult with employees and supplemental contractors on various management system programs, training courses and hazard/risk assessments to encourage their
input on ways we can address gaps, improve performance and proactively manage risks.

403-5

Worker training on occupational healthand safety

We deliver occupational health and safety training per our management system to 100% of our employees and supplemental contractors. We tailor training that is
specific to everyone’s role and always reinforce our commitment to compliance, our robust ESH standards and our customers’ performance expectations. Our training
covers safety observations and reporting, procedures and policies and use of personal protective equipment. Employees are expected to share lessons learned andbest practices to prevent future incidents and recognize and reinforce safe behavior.
Turnkey suppliers are expected to provide health and safety training to their workers. They are responsible for following their companies’ procedures as well as
applicable regulatory requirements. TI offers guidance as needed.

Giving and volunteering

403-6

Promotion of worker health

Please see TI’s response to indicator 403-3 for more information about how we promote worker health.

Global Reporting
Initiative index

403-7

Prevention and mitigation ofoccupational health and safety impacts
directly linked by business relationships

Please see TI’s response to indicator 403-1 and 403-3 for more information about mitigating health and safety impacts. Our Supplier Code of Conduct requires that
our suppliers ensure working conditions are safe, and our Supplier Environmental and Social Responsibility Policy outlines our expectations for health, safety andenvironmental protection.

403-8

Workers covered by an occupational
health and safety management system

TI's ESH management system covers 100% of our employees and supplemental contractors. Turnkey suppliers and non-TI managed workers are excluded, as those
suppliers are expected to follow their companies’ procedures as well as applicable regulatory requirements.

403-9

Work-related injuries

See Employee safety and health in the Workplace section of the 2019 TI Corporate Citizenship Report for injury data, which are calculated based on 200,000 hours
worked. Personnel excluded from this calculation are temporary labor provided by turnkey suppliers or non-TI managed workers.
The main types of injuries for employees and workers include overexertion/awkward posture/ergonomics; contact with an object (struck by/against); and fall on samelevel/slip/trip/loss of balance.

403-10Work-related ill healthSee Employee safety and health in the Workplace section of the 2019 TI Corporate Citizenship Report for ill health data. Personnel excluded from this calculation aretemporary labor provided by turnkey suppliers or non-TI managed workers.
The main types of employee ailments include overexertion, awkward posture and ergonomics. The hazards that caused or contributed to ailments in 2019 were
ergonomics-related hazards and noise exposure. We corrected these by putting corrective and preventative measures in place to reduce strain on the body.

Table of contents
CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
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Training and education
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Development in the Workplace section of the 2019 TI Corporate Citizenship Report and the Employment management approach in this GRI Index to learn more
about our management approach. The SVP of HR oversees our development programs with the support of the director, Worldwide Talent Development.
Throughout the year, TIers and their managers regularly discuss performance and development. We also monitor employees’ understanding of their own goals andtheir managers’ expectations through surveys. Instead of tracking formal performance reviews, we focus on the quality of the conversation. We believe this focus
improves employees’ performance and aligns their goals with our priorities.
We track attendance in mandatory training programs to ensure compliance and assess training content to ensure it is accurate and relevant. Where needed, we workwith facilitators and subject matter experts to improve program content. We also benchmark with training providers and other companies to ensure the effectivenessof our learning modalities.

Table of contents

404-1

Average hours of training per year
per employee

404-2

Programs for upgrading employee skills Employees take part in a variety of development opportunities throughout their careers. Learn more about our development programs in the Workplace section of the2019 TI Corporate Citizenship Report.
and transition assistance programs

404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

CEO letter
TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace

Employees globally received, on average, 30.3 hours of training in 2019.

TI supports employees owning their development plans and does not track the number of employees receiving performance reviews. We have seen greater
success in employee engagement, goal setting and alignment with the company priorities by instead encouraging better conversations between supervisors andemployees and by providing access to online resources to guide these conversations. We regularly assess employees’ understanding of their own goals and manager
expectations. Employees and their managers may agree to more frequent reviews.

Diversity and equal opportunity
Indicator Description

Disclosure103-1 to Disclosure on management approach
103-3

See Diversity and inclusion in the Workplace section of the 2019 TI Corporate Citizenship Report and the Employment disclosure of management approach in thisGRI Index to learn more about our management approach. The SVP of HR has overall responsibility for diversity and inclusion and is supported by our diversity andinclusion director.
We ensure our recruiting efforts and workforce reflect the available pool of talent and measure participation in our diversity initiatives. We also monitor the number ofconcerns or grievances reported, benchmark our programs and strategies against our peers, and solicit feedback from minority organizations to determine whererefinements are needed.

405-1

Diversity of governance bodies
and employees

See Governance in the Responsible business practices section of the 2019 Corporate Citizenship Report and Diversity and inclusion in the Workplace section to learn
more about the diversity of our governing bodies and employees.

405-2

The ratio of basic salary andremuneration of women to men

We pay our employees fairly and equitably. TI has long been committed to competitive and equitable compensation regardless of gender, race, ethnicity orother protected characteristics, and we have designed checks and balances into our compensation system, including regular in-depth analyses, to ensure that
we achieve it.
In 2019, we conducted a separate compensation analysis examining gender and race pay parity (including base, bonus and equity), that considered job type,job level and country. Our analysis confirmed that within the U.S. and worldwide, TI pays women as much as men, and in the U.S., TI pays minorities as much asnonminorities. See compensation in the Workplace section of the 2019 Corporate Citizenship Report for more information.

Giving and volunteering
Global Reporting
Initiative index

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Nondiscrimination
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Diversity and inclusion in the Workplace section of the 2019 TI Corporate Citizenship Report, the Employment disclosure of management approachin this GRI Index, Living our values – TI’s ambitions, values and code of conduct and our Equal Opportunity Employment Policy to learn more about ournondiscrimination standards.
We ensure our recruiting efforts and workforce reflects the available pool of talent and measure participation in our diversity initiatives. We also monitor the numberof concerns or grievances reported, benchmark our programs and strategies against our peers, and solicit feedback from minority organizations to determine whererefinements are needed.

406-1

Although we compile discrimination allegations for internal review and action, we do not currently report this information since we consider it confidential.
We work to resolve any inquiries related to discrimination successfully and to take appropriate remedial measures.

Incidents of discrimination andcorrective actions taken

Human rights security practices

Table of contents
CEO letter

Indicator Description

Disclosure103-1 to Disclosure of management approach103-3

See human rights in the Responsible business practices section of the 2019 TI Corporate Citizenship Report for more information about our management approach.

410-1

Our Worldwide Protective Services organization has a standard protocol for maintaining a safe and respectful working environment globally. This includes deliveringtargeted training that includes ethics, compliance and human rights components to 100% of our security personnel.

TI at a glance

Security personnel trained in humanrights policies or procedures

Our commitment andreport overview

Human rights assessment

Sustainability

Indicator Description

Disclosure

Responsible businesspractices103-1 to Disclosure of management approach103-3

See human rights in the Responsible business practices section of the 2019 TI Corporate Citizenship Report.
The Audit Committee of our board of directors oversees human and labor rights-related efforts. Our ethics director updates committee members on human rightsrelated issues annually. If a serious violation occurs between board meetings, the chief compliance officer or the Ethics Office promptly notifies the Audit Committee
chair. We require all of our worldwide manufacturing sites to complete third-party self-assessment questionnaires that include a focus on human rights practices. In
addition to yearly self-assessment questionnaires completed by all of our manufacturing sites, audits of select sites for human rights risks are conducted internally by
TI personnel and externally by independent third-party auditors. In those third-party audits of our facilities, we have encountered no priority findings on human rights.
We use our own business practices statement and TI Code of Conduct, along with our membership in organizations such as the RBA, as reference points for ourapproach to managing human rights issues.
We have policies that address diversity and nondiscrimination, workplace safety, child labor, forced labor and human trafficking, working hours and minimum wages,
and data privacy. Additional policies guide our actions in specific areas, such as supply chain, environmental health and safety, and privacy.
We have several operating procedures in place to safeguard the rights of employees, suppliers and contractors, including labor standards, training and awarenessbuilding practices, freedom to associate and incident reporting tools.

412-1

TI successfully audited two factory operations for human rights as part of our RBA-validated audit process. We assessed 100% of our worldwide manufacturing sites
using RBA’s self-assessment tools.

Workplace
Giving and volunteering
Global Reporting
Initiative index

Operations that have been
subject to human rights reviews
or impact assessments

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Indicator Description

Disclosure

412-2

Our sites are required to build awareness of human rights among employees, identify risks and put processes in place to manage them. Any individual’s
noncompliance with our standards and related labor laws is not tolerated and will result in corrective action, including termination. Site management and humanresources personnel monitor and enforce appropriate behavior.
We provide training modules related to human rights, ethics and compliance to help managers, security personnel and TIers worldwide – including those in higher-riskcountries where we operate. This training helps create and maintain a respectful, humane and nondiscriminatory workplace. Training programs cover topics such as
cross-cultural awareness, bullying, security and human rights risks.
All employees receive training and guidance on TI’s values and ethics, specifically as it relates to integrity and respect in the workplace. In 2019, we provided code of
conduct training, which addresses human rights and methods for reporting concerns, to all employees globally.

Employee training on human rights
policies or procedures

Local communities

Table of contents
CEO letter

Indicator Description

Disclosure103-1 to Disclosure of management approach103-3

See the Giving and volunteering section of the 2019 TI Corporate Citizenship Report to learn more about our management approach. Our VP with responsibility
for corporate citizenship oversees our education, philanthropy and volunteerism programs. Annual updates are provided to the board of director’s Governance andStockholder Relations Committee. The TI Foundation is a separate nonprofit organization; its board meets quarterly and reviews education-related grants in the firstquarter of each year.
Stakeholders who have questions or concerns about our community, philanthropy and volunteering programs can email
citizenshipfeedback@list.ti.com or anonymously contact the TI Ethics Office. Organizations that want more information about our education grants can contact
giving@ti.com. More information about our programs and technologies can be found at ti.com/stem and education.ti.com.
We track the effectiveness of our community investment programs, volunteer participation and solicit feedback from employees and nonprofits we serve. This helps us
assess our impact and expenditures and make refinements where needed. In support of our Matching Gifts program, we also track employee financial contributionsand volunteer hours using an online management system.
In the U.S., we have coordinated volunteer projects with the United Way and its service provider agencies since the early 1960s. Outside America, TIers support
various causes and organizations, from the Hope School in China to the India Science and Technology Quiz.

413-1

Operations with local community
engagement, impact assessments anddevelopment programs

TI does not conduct formal community impact assessments because our sites are in existing industrial areas that do not negatively impact vulnerable populations.
We assess environmental impacts and risks at all sites. At each of our sites, we engage with community leaders to identify local needs so that we may support themthrough corporate, TI Foundation and employee giving as well as by providing volunteers (see the Giving and volunteering section of the 2019 TI Corporate Citizenship
Report to learn more).
Stakeholders who have questions or concerns about our community, philanthropy and volunteering programs can email
citizenshipfeedback@list.ti.com or anonymously contact the TI Ethics Office.

413-2

Operations with significant actualand potential negative impacts on
local communities

TI announced in January 2020 the closure of two, 150-millimeter wafer production sites in North Texas over the next three to five years. Each facility, which ismore than 50 years old, has about 500 employees. While there are no immediate changes to staffing, we will transfer many of the workers to other Dallas-area
manufacturing sites. Those who do not get new roles will receive severance packages and transition assistance.

TI at a glance
Our commitment andreport overview
Sustainability
Responsible businesspractices
Workplace
Giving and volunteering
Global Reporting
Initiative index

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

59

Supplier social assessment
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Supply chain management in the Responsible business practices section of the 2019 TI Corporate Citizenship Report and our Anti-human trafficking statement tolearn more about supplier social assessments.

414-1

Percentage of new suppliers that werescreened using social criteria

We do not have a process to track the percentage of new suppliers being screened. However, we do screen any new supplier that is deemed critical or provides
on-site services to our factories.

414-2

Significant negative social impacts in the See our Anti-human trafficking statement for more information about how we manage social impacts in our supply chain. In 2019, we assessed 179 suppliers with 300
factory locations and our findings revealed no significant negative social impacts or issues of concern. As a result, no relationships were terminated.
supply chain and actions taken

Public policy
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Public policy in the Responsible business practices section of the 2019 TI Corporate Citizenship Report to learn about our management approach. The vicepresident of Worldwide Government Relations provides a written quarterly update of government relations activities and progress to our leadership team and board of
directors, and also makes a formal presentation to the board’s Governance and Stockholders Relations Committee annually.
Political activities and contributions reflect U.S. activity only. Employees and other stakeholders can contact our vice president of Worldwide Government Relations or
the TI Ethics Office with any questions.

TI at a glance

415-1

TI’s political activities and contributions reflect U.S. activity only. We do not make political contributions in any country outside the U.S.

Our commitment andreport overview

Marketing and labeling

Table of contents
CEO letter

Sustainability
Responsible businesspractices
Workplace

Political contributions

Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Responsible manufacturing in the Sustainability section of the 2019 TI Corporate Citizenship Report to learn more about our management approach. Overseeing
product responsibility at TI includes the:•A udit Committee, TI’s board of directors: Oversees internal controls, compliance and performance.
•C FO: Ensures that capital allocation for product development, manufacturing and sales align with TI’s strategies.
•S VPs of each business line: Ensures new designs and current products meet customer and regulatory requirements.

417-1

Both our customers and the countries where we operate have different label requirements based on the type of materials shipped to ensure they meet substance
restrictions and other requirements. For example, to consolidate global regulatory substance information for semiconductor products, packing labels meet the
combined efforts of the IPC-Association Connecting Electronics Industries and the Joint Electronic Device Engineering Council J-STD-609, along with the Chinesechasing arrow symbol. It is our ongoing objective to comply with these ever-changing regulations and import/export laws while still ensuring the timely delivery of
our products.
By default, we use TI standard labels and create custom labels per customer requirements if needed. We share information on the possible environmental and social
impacts of our products on our Eco-Info page and in our product content tool. We also provide applicable safety information in our product literature.
Our Restricted Chemicals and Materials program requires material suppliers and external manufacturing to provide appropriate information for TI to assess compliancewith restricted chemicals and materials requirements at least annually. We assess and indicate on our labels and through our website the compliance status of
integrated circuit components to all known regulatory and industry requirements.

Giving and volunteering
Global Reporting
Initiative index

Requirements for product and service
information and labeling2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTS

60

Customer privacy
Indicator Description

Disclosure103-1 to Disclosure of management approach
103-3

See Information protection in the Responsible business practices section of the 2019 TI Corporate Citizenship Report to learn more about our management approach.
Our chief information officer oversees information protection and we have governance and compliance structures in place to ensure issues areelevated and addressed:•S enior leaders from major business units and support entities review current cybersecurity threats, assist in prioritizing security actions and help build awarenessand support within their organizations.
•O ur Confidential Information Protection Council focuses on ensuring that confidential information and trade secrets are appropriately classified and protected.
•O ur Privacy Committee, comprised of cross-organizational representatives, helps ensure appropriate protection of personally identifiable information of TIers,
customers and business partners.
If employees identify potential threats or have questions or concerns about IT security, we have internal channels in place to assist them. Customers and suppliers also
can contact us directly if needed through their account managers and other channels.
We regularly review and test our controls to ensure protections are functioning as they should. We do this by conducting external penetration tests, internal
vulnerability assessments and audits at the site and business level. We also evaluate our practices against industry standards and vet with external experts. We
address any identified deficiencies.

418-1

Although recorded for internal review and action, we currently do not report privacy complaints or breach incidents publicly since we consider
such information confidential.

Table of contents
CEO letter
TI at a glance

Substantiated complaints concerning
breaches of customer privacy andlosses of customer data

Our commitment andreport overview

Socioeconomic compliance

Sustainability

Indicator Description

Disclosure

Responsible businesspractices103-1 to Disclosure of management approach
103-3

See Ethics in the Responsible business practices section of the 2019 TI Corporate Citizenship Report to learn more about our management approach.

Workplace419-1

TI received zero material fines and non-monetary sanctions related to social and economic issues in 2019.

Giving and volunteering

Non-compliance with laws andregulations in the social andeconomic area

Global Reporting
Initiative index*Developed by TI.
**GRI updated its water and wastewater and occupational health and safety standards in 2018, which called for new or revised data to be reported.

2019 CORPORATE CITIZENSHIP REPORT - TEXAS INSTRUMENTSSZZO00461