NXP Semiconductors N : 2025 Executive Summary

About this update from Nxp Semiconductors N.v.

2025 Corporate Sustainability Report Introduction NXP has been committed to corporate responsibility and sustainability within our organization and throughout our stakeholder community since our founding in 2006. As our sustainability programs evolve, we are focused on two priorities, which are enhancing how our technologies can drive sustainability for NXP and our partners and embedding these initiatives across our business. In this Executive Summary, we discuss the sustainability progress we've made and our key achievements in 2025. For more detailed information, please read our full 2025 Corporate Sustainability Report . Jennifer Wuamett Executive Vice President, General Counsel, Chief Sustainability, Officer NXP Semiconductors Named one of TIME's Most Sustainable Companies of 2025 Change is inevitable, but progress is intentional. Our sustainability mission - built on transparency and accountability helps drive continuous improvement and positive change to help build a better world for tomorrow. Every accomplishment we achieved in 2025 is more than progress - it's an ongoing promise that, together, we can create a legacy of lasting impact. 2 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report Sustainability at NXP Our sustainability mission is to enable a better, safer, more secure and more sustainable world through innovation. Our sustainability strategy is guided by globally recognized frameworks, including the UN Sustainable Development Goals (SDGs). Our focus and activities are shaped by regularly assessing and considering insights from internal and external stakeholders, sustainability standards and regulations, peer disclosures, rating reports and industry research. This process helps us align our priorities with stakeholder expectations and emerging sustainability risks and opportunities. This aspiration has given rise to a series of global goals that inform our efforts and enable us to gauge our performance, celebrate our accomplishments and address opportunities for improvement. Our aspirations are listed below. Innovation Design and develop manufacturing technologies that positively impact the planet and society Develop higher-performing, more energy-efficient products Environment Ensure efficient and responsible use of natural resources 35% reduction in Scope 1 and 2 emissions by 2027 and 55% by 2030; carbon neutrality by 2035 1 35% reduction in Scope 3 by 2033 50% renewable electricity by 2027 60% wastewater recycled by 2027 People Foster an inclusive environment and improve representation of women in our global workforce Zero tolerance of forced labor and human-rights abuses Zero workplace injuries Governance Work with our supply-chain partners to reduce their environmental footprint Integrate sustainability into our business strategy 90% waste recycled by 2027 1 NXP's approach is to reduce its Scope 1 and Scope 2 emissions by 2035 by prioritizing the implementation of technically and socio-economically feasible solutions. We intend to offset any remaining Scope 1 and Scope 2 emissions. While our goals to reduce Scope 1 and 2 emissions by 2030 and Scope 3 emissions by 2033 are validated by SBTi, this carbon neutrality goal has not received SBTi validation. 3 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report 2025 Sustainability highlights Exceeded our goals for waste and water recycling Biodiversity assessments conducted 4 sites Environmental, health and safety Completed a climate risk and opportunity assessment with scenario analysis Limited assurance for Scope 1 and 2 emissions Recertified our EHS management system to ISO14001 and ISO45001 Enhanced supplier engagement program to reduce our Scope 3 emissions Chandler site was a finalist in Valley Metro's Clean Air Award Installed PFC-abatement equipment at 4 sites Sustainability training We offer company-wide training to ensure our global workforce is equipped with the skills and knowledge to perform their functions safely and without harming the environment. This includes job- and site-specific training that includes the prevention of stormwater pollution, management of hazardous waste and wastewater, handling of chemicals, chemical management and safety, emergency response, ergonomics, shipping of hazardous materials and other topics related to the EHS. In 2025, we also launched mandatory company-wide training on our sustainability governance and initiatives. Published our inaugural Climate Transition Plan Climate Transition Plan We take a comprehensive approach to managing greenhouse-gas emissions across Scope 1, Scope 2 and Scope 3, integrating reduction targets into operational planning and strategy. We have developed our first Climate Transition Plan this year where we further outline our decarbonization strategy in line with our commitment. The plan includes our emissions inventory, targets, emission reduction levers and actions and governance. Nijmegen site piloted a brain-based safety initiative Thailand's Ministry of Public Health gave our Bangkok site a health and wellness award 4 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report Increased renewable 47 % energy to of IDL team members completed sustainability training 96 % decrease in Scope 1 and 2 emissions since our 2021 baseline 47 % 2025 Sustainability highlights Team members Utilize third-party data to create fair, equitable and competitive compensation 93 % of team members feel NXP is committed to ethical practices Cultural-enrichment and awareness events promoted throughout the year 364,146 total NXP online training hours Presented the Top 10 Enterprise Award by the Global ERG Network 96 % of IDL team members completed sustainability training Recognized by Clarivate as a Top 100 Global Innovator External recognition and awards Living wage gap analysis completed for the second time across all NXP team members Recognized by Avtar & Seramount as one of the Best Companies for Women in India In 2025, NXP earned numerous recognitions across our global locations, reflecting our continued commitment to people, partnership, innovation, inclusion and sustainability. In China, NXP received the IC Employer - Corporate Culture & Team Spirit Award for advancing strong organizational culture and talent development, while our Tianjin site was honored with Heraeus' Long-Term Partnership Award celebrating 30 years of collaboration. Additionally, NXP was named one of the 2025 Best Companies for Women in India by Avtar. To view a detailed list of NXP awards by country, visit the Awards and Recognition web page of our website. Launched our STEM ERG, expanding our program to ten primary ERGs Employee Resource Groups (ERGs) ERGs continue to play a significant role in advancing inclusion and strengthening team-member engagement. In 2025, we launched our STEM ERG, expanding our program to ten primary ERGs with global representation across Asia, Europe and the Americas. Membership is open to all NXP team members and each ERG has defined missions and executive oversight. We monitor ERG progress through membership growth, participation metrics and team-member feedback to ensure these groups remain impactful and relevant. IDL engagement index ranked within the tech benchmark's 70-75th percentile 5 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report of team members this NXP is a great place to work 82 % of team members are proud to work at NXP 87 % participation in the Winning Culture Survey 90 % 2025 Sustainability highlights Zero tolerance for tax evasion and artificial tax structures maintained Responsible business practices Digital disaster recovery plans formalized for critical applications Conducted our first comprehensive review of our human rights program Active feedback channels for whistleblower reports in place Social responsibility Strengthened supply-chain worker outreach through civil-society partnerships We are regularly invited to participate in high-level events such as the United Nations Responsible Business and Human Rights Forum to help make collective progress on human rights issues in our business value chain. In 2025, we also expanded supply chain collaborations with civil society organizations to obtain to facilitate worker involvement in human rights work. Additional information on our Corporate Social Responsibility and Human Rights Audit Program can be found in our Modern Slavery Reports available on our Sustainability Documents web page. Data privacy trainings conducted for specific employees Privacy We respect the privacy of everyone involved in doing business for or with NXP and ensure data is handled in a fair, lawful and ethical way. We take the principles of data protection, such as data minimization and purpose limitation, seriously. This year, we launched privacy-specific data trainings for select employees. We are also working to update our Privacy Statement to increase transparency and accessibility for users. Vendor collaboration portal implemented for conflict mineral reporting Elevated cybersecurity risk practices across our supplier network 6 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report of audited suppliers improved their performance 73 % of suppliers signed off on our Supplier Code of Conduct 100 % closure rate for audited suppliers 91 % completion rate for our Code of Conduct training 96 % certified conflict-free 3TG smelters 100 % RoHS-compliant portfolio 99 % Sustainable product solutions NXP develops technologies that enable a more connected, safer and secure world, embedding sustainability into long-term product innovation. We collaborate closely with customers to co-develop solutions that reduce environmental impact, helping them meet their sustainability goals while advancing ours. For more detailed information and to learn how these technologies work, please check out our full Corporate Sustainability Report . Take, for example, the future of smart buildings that optimize energy use without compromising comfort. This vision is reality through our collaboration with Honeywell, where our i.MX 8M Plus applications processor powers autonomous building systems. Addressing plastic waste, a global challenge, requires bold solutions. Through our collaboration with Inotec, NXP leverages UCODE RAIN RFID technology to enable 20-year traceability for reusable flower trays. Safeguarding water is essential. NXP's NAFE family of analog front-end devices powers AI-assisted pH monitoring systems that ensure water quality. Hospitals are complex ecosystems where inefficiency can cost lives and resources. NXP collaborates with healthcare innovators and integrators to deploy RAIN RFID and NFC technologies that streamline operations, improve asset tracking and authenticate medications. NXP's energy-efficient i.MX processors, RT crossover MCUs and secure connectivity power autonomous drones that help monitor coastlines and protect ecosystems with minimal environmental impact, reducing fuel-intensive patrols and strengthening climate-resilience efforts. These solutions are more than technological milestones; they are proof of NXP's unwavering commitment to sustainability. We are driving progress toward our sustainability goals, developing higher-performing, energy-efficient products and ensuring responsible use of natural resources. Learn more Like our customers, partners and other stakeholders, we view sustainability as a journey. To learn more about how our latest products and solutions help support that journey, visit nxp.com for updates, news and other insights. 7 NXP 2025 Executive Summary We operate with a clear purpose: bring together bright minds to create breakthrough technologies that make the connected world better, safer and more secure. With this commitment comes the responsibility to pioneer solutions that help contribute to a more sustainable future. This report reflects our unwavering commitment to sustainable development and our focus on achieving meaningful, measurable progress. Rafael Sotomayor President and CEO NXP Semiconductors For more information, see our 2025 Corporate Sustainability Report Aspirations We take pride in the meaningful steps we're taking to reduce our negative impacts and amplify positive ones. Year after year, we advance our sustainability aspirations with measurable progress - here is what we achieved in 2025. Aspirations Progress in 2025 Innovation Design and develop manufacturing technologies that positively impact the planet and society We continued to improve our portfolio-assessment approach to better understand how our products enable sustainable solutions and identified opportunities to maximize positive impact. Develop higher-performing, more energy-efficient products We continued to work to increase the energy efficiency and performance of our products with the goal of reducing our use of raw materials and lowering our emissions. Environment Ensure efficient and responsible use of natural resources 1 We strive to improve our operations and minimize environmental impact. We conserve natural resources, reduce emissions and manage substances of concern responsibly. By embracing circular-economy principles, we cut material use, extend product life cycles and promote reuse and recycling. 35% reduction in Scope 1 and 2 emissions by 2027 and 55% by 2030; carbon neutrality by 2035 We decreased our absolute Scope 1 and 2 emissions by 47% compared to our baseline year of 2021. 35% reduction in Scope 3 by 2033 We decreased our Scope 3 emissions by 54% compared to our baseline year of 2022. 50% renewable electricity by 2027 2 We used 47% renewable electricity, an increase of 16 percentage points compared to our baseline year of 2021. 60% wastewater recycled by 2027 We recycled 61% of wastewater, meaning we achieved our 2027 target ahead of schedule. Overall, we had an increase of 13 percentage points compared to our baseline year of 2021. 90% waste recycled by 2027 We recycled 94% of waste, meaning we achieved our 2027 target ahead of schedule. Overall, we had an increase of 18 percentage points compared to our baseline year of 2021. People Foster an inclusive environment and improve representation of women in our global workforce Women made up 36% of our global workforce - the same percentage as 2024. Zero tolerance of forced labor and human-rights abuses We conducted our first comprehensive review of the relevance, adequacy and effectiveness of NXP's human rights program. We continued to audit suppliers and implemented a Vendor Collaboration Portal for Conflict Mineral reporting. Zero workplace injuries We maintained a low Total Case Incident Rate (TCIR) of 0.08, well below semiconductor-industry averages. Governance Work with our supply-chain partners to reduce their environmental footprint We continued to survey our top-tier suppliers to gauge their environmental footprints and include their performance in our supplier rating to derive an action plan. Integrate sustainability into our business strategy We continued to integrate our Sustainability Program throughout the business, and, in 2025, we launched a company-wide sustainability training which was mandatory for all employees. 1 NXP aims to reduce its Scope 1 and Scope 2 emissions by 2035 by prioritizing the implementation of technically and socio-economically feasible solutions. We intend to offset any remaining Scope 1 and Scope 2 emissions. While our Scope 1, 2 and 3 emissions reduction goals are validated by SBTi, this carbon neutrality goal has not received validation. 2 We aim to achieve our renewable electricity goal through the use of unbundled renewable energy certificates (RECs), power purchase agreements and, in select cases, self-generation. This goal has not been validated by SBTi. 8 NXP 2025 Executive Summary For more information, see our 2025 Corporate Sustainability Report NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at nxp.com NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. © 2026 For more information about NXP's Sustainability activities, please read our full 2025 Corporate Sustainability Report . Forward-looking statements This document includes forward-looking statements which include statements regarding NXP's business strategy, carbon emissions, energy consumption, water consumption, and other sustainability aspirations as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which our products are incorporated; recent changes in global trade policy including tariffs and related trade actions announced by the U.S., China and other countries, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in our customers' equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, and the continued hostilities and armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance our debt at or before maturity to meet our debt service, research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the initial publication date of this document. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, nxp.com/investor or from the SEC website, sec.gov .

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