NXP’s Ambitious Emission Targets Validated by the SBTi

At NXP, we strongly believe that the impact of technological innovation will have a positive impact on the world’s sustainability vision. Whether it’s the revolution underway in electrified transportation or the way we live and work in more secure, connected cities and homes, it’s clear that the role of semiconductors in society has never been more important.

As part of our sustainability journey, we defined science-based targets for our greenhouse gas (GHG) emissions and formally committed to the Science Based Targets initiative ?(SBTi) in 2022. Taking actions against climate change and addressing other environmental challenges will require collaboration across our industry. Committing to the SBTi will allow NXP and other companies to set ambitious and actionable emissions targets over the next few years.

Following our commitment to SBTi targets, NXP has now achieved a major milestone by receiving approval from the SBTi for its near-term GHG emissions reduction targets ?for Scopes 1 and 2. By adopting science-based targets, we're not only defining NXP's contribution to global carbon reduction goals but also confirming our commitment to being a front runner in sustainable business practices ?and ensure that sustainability remains at the core of our business strategy.

Our Motivation for Committing to Science-Based Targets

The Science Based Targets initiative (SBTi) helps companies to set GHG emission reduction targets in line with climate science and the Paris Agreement goals. These targets aim to limit global temperature rise above pre-industrial levels to 1.5 °C and provide a clear and ambitious vision for our company to follow and for our stakeholders to align with.

The EU Corporate Sustainability Reporting Directive (CSRD) mandates that companies set emissions reduction targets and develop a Climate Transition Plan. By setting goals for all GHG emissions reduction, we're taking a crucial first step in this plan, ensuring we're ahead of the curve in regulatory compliance.

Ambitious Yet Achievable Targets

• Scope 1 and 2 GHG emissions: We aim to reduce these emissions by 55% by 2030, using 2021 as our base year. These targets align with our existing goals of 35% reduction by 2027 and achieving carbon neutrality in 2035.
• Scope 3 GHG emissions: We plan to reduce these by 35% by 2033, using 2022 as our base year. This new target underscores our holistic approach to emissions reduction, acknowledging the significant impact of our operations and supply chain.

Initiatives for Achieving Validated Targets

Scope 1 target: We're focusing on several key initiatives in line with our existing roadmap including the introduction of abatement technologies for PFC gases, optimization of processes for heat transfer fluids (HTFs) and transitioning to electric boilers.

Scope 2 target: Our strategy includes purchasing renewable electricity through Renewable Energy Certificates (RECs) and installing solar panels at our facilities.

Scope 3 target: We are looking at improvements across all categories and with special focus on the two largest contributors to our indirect emissions:

1. Improving the energy efficiency of our sold products during their use phase
2. Partnering with our suppliers to reduce the carbon footprint of the goods and services we purchase

Our emission reduction targets demonstrate our commitment to transparency, accountability and proactive climate action. We expect that these validated targets will strengthen our relationships with our business partners and investors. The SBTi-validated targets also position us as a partner in our customers' own sustainability journeys. They provide a clear roadmap for our continued investments in improvements, innovations and business partnerships.

Author | Chiara Ferracioli-Millar

Chiara leads NXP’s ESG reporting activities as part of the sustainability organization. Based in Amsterdam, she and her team work to align external reporting with best practice and stakeholder expectations, and to ensure compliance with the regulatory requirements of the ever-evolving reporting landscape. Chiara also leads NXP’s sustainability program’s strategic business pillar, which includes our scope 3 emissions strategy and targets. Before joining NXP, Chiara spent two decades in governmental, policy and strategic affairs, including several years at the GRI, the most widely used sustainability reporting standard. She holds an MA in International Law from SOAS University of London.