Emissions

To address growing demand for decision-useful, climate-related information from organizations across all sectors of the economy, we disclose current and historical information for analysis of our Scope 1, 2 and 3 emissions.

2023 Emissions Performance Snapshot

Our roadmap to carbon neutrality includes annual emission-reduction targets to put NXP on a clearly defined path to reduce emissions in line with the goals of the Paris Agreement.

  • 24%
    Decrease in Absolute Scope 1 and 2 Emissions since 2021 Baseline
  • 11.86 M
    tCO2e Total Scope 3 Emissions

Carbon Footprint

As semiconductor technology evolves, manufacturing processes become more complex. Smaller, faster semiconductors require more process steps to produce, which means production consumes more energy and requires more processing chemicals. That, in turn, may translate to an increase in emissions. We work to offset this by continually optimizing our processes and increasing abatement of process emissions.

Emissions by Type

We measure our carbon footprint according to the GHG Protocol, a set of internationally recognized standards for quantifying and reporting GHG emissions. We report on all three of the protocol's defined categories: Scope 1 (direct emissions), Scope 2 (indirect emissions, owned) and Scope 3 (upstream and downstream emissions).

Our Scope 3 emissions are understandably larger than our Scope 1 and 2 emissions, given that Scope 3 emissions represent an impact beyond our operations. While we will remain focused on our Scope 1 and 2 decarbonization efforts, we will also work to establish methods to reduce our Scope 3 footprint, and will have validated Scope 1, Scope 2 and Scope 3 SBTs in 2024.

2023 Proportion of Scope 1, 2 and 3 Emissions

Scope 1 and 2 Emissions

Due to increased renewable electricity purchase, lower factory utilization and emission reduction projects, our absolute Scope 1 and 2 emissions decreased 23% compared to 2022. A decade of collective effort has significantly reduced our Scope 1 and 2 emissions. By 2027, our mid-term goal is to reduce Scope 1 and 2 absolute emissions by 35% from a 2021 baseline. So far, we have decreased Scope 1 and 2 emissions by 24% since 2021.

Scope 1 Emissions

The GHG Protocol defines Scope 1 emissions as direct emissions from company-owned and -controlled resources, including process emissions (from onsite manufacturing) and stationary combustion (fuels, heating sources, etc.). Our Scope 1 emissions only includes data from manufacturing sites.

Our Scope 1 emissions include PFC emissions, HTF emissions, emissions from the consumption of fossil fuels and emissions of gases identified in the Kyoto Protocol, including Nitrous Oxide (N₂O) and Sulfur Hexafluoride (SF₆).

Results

Since 2014, our efforts to optimize our processes, upgrade tools and install abatement equipment have lowered our absolute Scope 1 emissions by 52%.

Scope 2 Emissions

The GHG Protocol defines Scope 2 emissions as indirect emissions from the generation of purchased energy supplied by a utility provider. At present, all of our Scope 2 energy use consists of electricity. We use our energy providers' actual, market-based emission data when we calculate our Scope 2 emissions. Our Scope 2 emissions includes data from both manufacturing and non-manufacturing sites.

Results

Our efforts in the past ten years to conserve electricity, obtain renewable energy and optimize our process tools have produced a continuous decrease in Scope 2 emissions, even though many of our processing steps are more complex and require more electricity to run. In 2023, our absolute Scope 2 emissions decreased by 17% compared to 2022.

Scope 3 Emissions

We understand that our impact extends beyond our operations and recognize the importance of addressing emissions along the entire value chain, not just within the bounds of our company. The Greenhouse Gas Protocol defines Scope 3 emissions as indirect emissions, not included in Scope 2, that occur in the value chain of the reporting company and divides the upstream and downstream emissions into 15 categories.

2023 marks the first time we took a comprehensive, detailed inventory of our Scope 3 emissions for all 15 categories. In so doing, we followed the calculation guidance laid out by the GHG Protocol. At the same time, as part of our commitment to the Science Based Targets initiative (SBTi) we made in 2022, we determined our Scope 3 emissions baseline with the aim of setting targets in 2023.

Results

In 2023, our total Scope 3 emissions were 11,857,054 tons of CO₂e and account for 93% of our total carbon footprint, underscoring the importance of responsible environmental stewardship that goes beyond the strict boundaries of any given company. As a result of the ongoing implementation of energy-consumption reduction measures in our products, slight updates to our calculation methodologies, and lower loading in our factories, our total Scope 3 emissions decreased in 2023 compared to 2022.

Within the 15 categories, we identified three which, combined, are responsible for approximately 98% of NXP's total Scope 3 emissions. These include, in descending order of contribution: Category 11 - Use of Sold Products; Category 1 - Purchased Goods and Services; and Category 2 - Capital Goods. During our assessment, we also concluded that two categories (Category 14 - Franchises and Category 15 - Investments) are not material to NXP at this time.

Emissions Performance Award

Although business travel is not one of the main contributors to our Scope 3 footprint, we still consider it to be an important emission category. In 2023, we participated in airline programs that offset our business travel-related emissions and, as a result, received a certificate, representing an offset of one ton of greenhouse gases, from the German branch of myclimate, an international organization for climate protection.