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ESG Goals
We have grown considerably since 2006 and continue to align with new challenges and embrace new opportunities. Our current focus is on integrating sustainability initiatives into our business and leveraging the many technologies we develop to enable a more sustainable world.
Our ESG Goals and Progress
Our ESG mission is to enable a better, safer, more secure and more sustainable world through innovation. That mission has given rise to a series of goals that inform our efforts and enable us to gauge our performance and celebrate our accomplishments.
| Goals | Progress in 2023 | |
|---|---|---|
| Innovation | Design and manufacture technology that positively impacts the planet and society | We conducted a thorough review of the entire portfolio, in order to classify and assess how our products contribute to sustainability. As part of that process, we identified ways to design and manufacture technology so it has a positive impact on the planet and society. |
| Develop higher-performing, more energy-efficient products | We strive to increase the energy efficiency of our products. With each new generation, we aim for higher performance in a smaller footprint, with the goal of saving on raw materials and greenhouse-gas (GHG) emissions. | |
| Environment | Carbon neutral by 2035 | We decreased our absolute Scope 1 and 2 emissions by 24% compared to our baseline year of 2021. |
| Reduce carbon emissions by 35% in 2027 (2021 baseline) | We decreased our absolute Scope 1 and 2 emissions by 24% compared to our baseline year of 2021. | |
| 50% renewable electricity by 2027 | We used 39% renewable electricity, an increase of 4 percentage points compared to 2022, and an increase of 22 percentage points compared to 2014. | |
| 60% of wastewater recycled by 2027 | We recycled 51% of wastewater, an increase of 2 percentage points compared to 2022, and an increase of 15 percentage points compared to 2014. | |
| 90% of waste recycled by 2027 | We recycled 86% of waste, an increase of 3 percentage points compared to 2022, and an increase of 13 percentage points compared to 2014. | |
| Social | 25% women in R&D by 2025 | There are 20% women in R&D, an increase of 1 percentage points compared to 2022. |
| 50% underrepresented minorities in our US workforce | There are 52% underrepresented minorities in our US workforce, an increase of 1% percentage points compared to 2022. | |
| Zero tolerance of forced labor and human-rights abuses | We increased the number of supply-chain due-diligence audits, and we reviewed and updated the NXP Human Rights Due Diligence Management System to reflect recent changes in the regulatory landscape for human rights and prepare NXP for further changes in this area. | |
| Zero workplace injuries | We maintained a low Total Case Incident Rate (TCIR) of 0.10, and remain well below semiconductor-industry averages. | |
| Governance | Work with our supply-chain partners to reduce their environmental footprint | We surveyed our top-tier suppliers, to gauge their environmental footprints, and included their performance in our supplier rating to derive action plans. |
| Integrate ESG into our business so we can foster ownership and accountability | We continued to drive the company wide ESG Program involving all functions and with clear roles and responsibilities, embedding sustainability in all the relevant areas of our business. |
2023 ESG Performance
"NXP is committed to our ESG journey and dedicated to driving further advancements. We will continue to review our ESG activities regularly to ensure that we are taking the appropriate actions to achieve our ambitious, long-term goals, which will require the ongoing dedication of all our team members, partners, customers and other stakeholders."
Sustainability Scorecard
We believe that having a diverse workforce makes our operations stronger. We recognize that our operations have an impact on the environment and are committed to reducing that impact, by being good stewards of our planet and helping to create a more sustainable world.
ESG Performance and Annual Incentive Plan
Since 2022, so as to reinforce our corporate commitment to these ideals, we have added a sustainability component to our short-term Annual Incentive Plan (AIP). As part of this effort, our Human Resources and Compensation Committee (HRCC) introduced a sustainability scorecard, which contains multiple metrics intended to measure our year-on-year progress toward our long-term aspirations relating to people and the environment. We encourage all team members to participate in this progress and, as a result, have made the scorecard part of the AIP for all team members. The sustainability component has a weighting of 20% in our AIP.
Roadmap to Carbon Neutrality
Our goal to be carbon neutral by 2035 presents multiple layers of complexity, given that we use renewable and non-renewable electricity, fossil fuels, PFCs and HTFs. The picture becomes even more complex when we consider increases in semiconductor production which, in turn, increase our GHG emissions. In 2022, we committed to setting Science Based Targets (SBTs). We compiled the required data and defined the targets in 2023, and will begin the validation process with Science Based Targets initiative (SBTi) in 2024.
Reaching our Mid-term Goal
By 2027, our mid-term goal is to reduce Scope 1 and 2 absolute emissions by 35% from a 2021 baseline. To reach our mid-term goal, we will address Scope 1 reduction by focusing on designing and/or installing equipment to reduce emissions, substituting chemicals and optimizing manufacturing processes. Since electricity is our largest GHG contributor, another of our mid-term goals is to increase our renewable electricity use to 50% and thereby decrease our Scope 2 emissions.
To help achieve our 2027 goal, we created a task force to identify opportunities for additional reductions in emissions. We have a solid roadmap in place for achieving our mid-term, 2027 goals. Our ability to achieve our 2035 goal will depend on the availability of renewable electricity in some of the countries where we operate, so we can reduce our Scope 2 emissions further, and on the effectiveness of the technical solutions we plan to implement to reduce our Scope 1 emissions.
Our Three-pronged Approach To Carbon Reduction
We take a three-pronged approach to carbon reduction: 1) reduce, remove or replace chemicals with a high global-warming potential (GWP) in our manufacturing processes, 2) lower our absolute and normalized energy consumption and 3) execute our carbon-free energy transition plan. This approach helps us achieve carbon neutrality while reducing or even eliminating our carbon offsets in the future.
EU Corporate Sustainability Reporting Directive
In 2024, we will continue to prepare for the EU Corporate Sustainability Reporting Directive (CSRD), including the requirement that we publish a Climate Transition Plan. We intend to publish a Climate Transition Plan consistent with CSRD requirements no later than 2026. As part of our Climate Transition Plan, we have set goals for our Scope 3 emission reduction initiatives and plan to have our climate goals validated by the SBTi in 2024. This process is underway and the outcome is necessary to finalize a Climate Transition Plan. Our progress will be reported in future Reports.
Contact Us
We are here to answer any inquiry regarding our corporate sustainability efforts, including EHS and environmental product compliance.