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2019 Nxp Corporate Sustainability Report Nxp

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2019 Nxp Corporate Sustainability Report Nxp 2019 NXP CORPORATE SUSTAINABILITY REPORT SECURE CONNECTIONS FOR A SMARTER WORLD 1 TABLE OF CONTENTS A Letter From Our CEO A LETTER FROM OUR CEO 3 ENVIRONMENT 49 About This Environmental Management 50 Report ABOUT THIS REPORT 4 Climate Change 53 Energy 65 OUR BUSINESS 6 Water 70 Overview of our Company 7 Waste 74 Worldwide Locations 9 Materials 78 Our Business Design for Sustainability 10 Environmental Product Compliance 80 Risk Management and Business Continuity 12 Stakeholder Engagement 13 SUPPLIER ENGAGEMENT 83 Industry Association Engagement 15 Supplier Code of Conduct 85 Quality 16 Supply Chain Management 86 Governance, Responsible Mineral Sourcing 95 Ethics and GOVERNANCE, ETHICS AND SUSTAINABILITY 18 Sustainability Governance 19 APPENDIX 96 Ethics 22 SASB 97 Sustainability 23 UN Global Compact 108 UN Sustainable Development Goals 26 GRI Index 109 Employees EMPLOYEES 29 Diversity, Inclusion and Equality 30 Recruitment, Development and Engagement 31 Employee Demographics 33 Human Rights 35 Environment Health and Safety 43 Supplier Engagement Appendix 2 Our Supply Chain A LETTER Our policies and tools help ensure our suppliers and manufacturers are sourcing and producing our products in an ethical, environmentally friendly and humane manner. NXP is proud to be a signatory A Letter From FROM OUR of the United Nations Global Compact and a full member of the Responsible Business Alliance Our CEO CEO (RBA), and we are committed to not only meeting but exceeding the utmost standards of ethical and sustainable conduct. For us, sustainability is a constant effort with many layers, as an evolving world and advancement in technology yield new opportunities for innovation at every turn. As such, I am pleased to share About This with you our progress made in 2019, just as I look forward to building on our achievements in Report As we look well into our future and the future of 2020 and beyond: society, sustainability is an essential component of the why and how behind what we do at NXP. On our 2019 Highlights journey, we aim to advance sustainable solutions in everything we do, through our people and products, Products – Our primary products and solutions Health and Safety – In 2019, our injury rate Our Business and in partnership with our customers are tools used to increase energy efficiency and was 0.12 (per 100 employees/working hours) and stakeholders. reduce power consumption, making consumer - low for semiconductor companies, which devices and systems operate more sustainably. average between 0.6 and 0.9. We engaged Our focus continues to guide our decisions with our employees using a safety survey to NXP is positioned to accelerate breakthroughs and plans for new applications in the determine if our workers felt safe while working that anticipate, automate and advance the world. Governance, coming quarters. at NXP. We received great feedback and We go beyond simply creating components. We continue to implement site improvements to Ethics and build system solutions that solve complex problems – By helping manage energy use, ensure a safety-first culture for everyone. Sustainability and offer transformative speed and scale to our Industries NXP continues to contribute to the shift to ecosystem partners. hybrid and electric vehicles in the automotive Social Responsibility – In 2019, the positive industry and the application of greater impact of our social responsibility program Our Products automation efficiency in manufacturing and for NXP’s foreign migrant workers in Malaysia NXP technologies and solutions are everywhere, commercial buildings. was highlighted in a worker documentary. In Employees improving the daily lives of people through the addition, our social responsibility team audited highest levels of safety, security and convenience our supply chain, which uncovered workers Carbon Footprint – In 2019, we reduced from their connected devices. Our design principles our perflorinated compound (PFC) emissions were paying recruitment fees for employment. enable maximum efficiencies in manufacturing, by 22% over our level reported in 2018. We are happy to report that all but one of those miniaturization and power consumption to minimize Since 2010, we have successfully reduced our suppliers have repaid the fees to their workers. The remaining supplier is in the process Environment technology’s impact on climate and the environment. normalized PFC emissions by 52%. of repayment. Our People Diversity is key to our success, inherent in our beliefs A sustainable future holds challenges and opportunities, and we aim to drive innovative solutions as a company, and creates a competitive advantage with our products, through our operations and within our supply chain. Working with our Supplier for NXP. By leveraging the unique backgrounds, stakeholders, customers, suppliers and the communities in which we live and work, we will create a Engagement skillsets and ideas of a diverse NXP team, we can more sustainable world together. deliver more innovative and sustainable solutions, not just for customers but for the company’s internal I look forward to keeping you informed and involved in our journey. operations as well. Appendix Kurt Sievers President and CEO, NXP Semiconductors 3 A Letter From Our CEO About This Report Our Business Governance, Ethics and Sustainability Employees Environment ABOUT THIS REPORT Supplier Engagement Appendix 4 ABOUT THIS REPORT A Letter From Our CEO This Corporate Sustainability Report (CSR) was created to show Changes that have influenced our reporting are: our commitment of transparency, communicating our efforts in sustainability for all stakeholders. It is an overview of the economic, • 2015 Sold the bipolar business which includes environmental and social aspects of NXP’s business activities the Jilin China factory and products. • 2015 Divested the NXP RF division About This • 2015 NXP merged with Freescale Semiconductor Report Data presented in this report covers the 2019 calendar year • 2017 Divested the NXP Standard Products Business (Jan. 1 – Dec. 31). The 2019 CSR was prepared to follow the Global • 2019 Acquired Marvell’s Wi-Fi and Bluetooth Connectivity Assets Reporting Initiative (GRI) Standards. Our first ever Sustainable Accounting Standards Board (SASB) report can be found in Appendix We value feedback from all of our stakeholders and we incorporate A. Our United Nations Communication on Progress is in Appendix B all feedback to inform us of key Sustainability issues and their Our Business and the GRI index is in Appendix C. impact to our business. We interview stakeholders, research best practices, study legislative landscape and review the results from The scope of this report includes our worldwide locations and joint our participation in various industry associations. As a result, each ventures for which we have management control. Environmental category that we report on meets three criteria: is significant, has a data covers leased and owned internal manufacturing sites, which current or potential impact on the company, and a matter over which Governance, accounts for the majority of our environmental footprint worldwide. we, as a company, have a reasonable degree of control. Ethics and Sustainability Materiality Assessment Products Environment Social Employees • Minimal environmental impact • Carbon, energy, water footprint • Responsible sourcing • Contribute to a sustainable society • Chemical management • Supply chain responsibility (process and products) • Worker voice and access to remedy Environment • Circular economy • Workplace safety Supplier Engagement To share your feedback, please contact NXP’s Sustainability team at [email protected]. Appendix 5 A Letter From Our CEO About This Report Our Business Governance, Ethics and Sustainability Employees Environment OUR BUSINESS Supplier Engagement Appendix 6 OVERVIEW OF OUR COMPANY A POSITION OF STRENGTH A Letter From TO BETTER SERVE OUR Our CEO SECURE CONNECTIONS FOR A SMARTER WORLD 26,000+ CUSTOMERS NXP Semiconductors N.V. (NASDAQ: NXPI) is a global semiconductor company We accelerate breakthroughs that creating solutions that enable secure connections for a smarter world. NXP focuses advance the world through our on research, development and innovation in its target markets. semiconductor technology leadership About This Headquartered in Eindhoven in The Netherlands, we have 60 years of combined Report experience and expertise with operations in more than 30 countries worldwide, approximately 29,000 employees (11,000+ engineers) and 9,000+ patent families. We accelerate breakthroughs that advance the world through our semiconductor technology leadership and have been named as a global TOP 10 Our Business Semiconductor company. Governance, Ethics and Sustainability Employees in Employees 30+ countries HEADQUARTERS Eindhoven, Environment The Netherlands employees~29,000 Supplier 9,000patent families $8.88B2019 annual revenue Engagement 60+year history R&D11,000+ engineers Appendix 7 OVERVIEW OF OUR COMPANY A Letter From Our CEO Our target markets are Automotive, Industrial & IoT, Mobile and, Communication Infrastructure. In our product offering and roadmaps we recognize societal trends to everything getting connected with the need for cyber security, energy efficiency and safety while automating processes, cars and other devices. About This Automotive Industrial & IoT Report A leader in advancing the future of safe and secure Among the forefront of innovation in Secure Edge mobility in smart cars, trucks, and driver replacement
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