Inside NXP Semiconductors’ First Climate Transition Plan

NXP Semiconductors has published its first ever Climate Transition Plan.

The company was spun off from Philips in 2006 and operates in more than 30 countries with more than 33,000 employees worldwide.

This plan was published alongside its 2025 Corporate Sustainability Report, and outlines NXP’s strategy to reduce its greenhouse gas emissions across its global footprint.

What is the Climate Transition Plan?

NXP’s Climate Transition Plan prioritises its Scope 1 and 2 emissions from direct operations and addresses Scope 3 emissions from upstream and downstream value chain activities.

It builds upon the foundations of its existing sustainability strategy and aligns with its validated science-based targets as well as its long-term ambition to achieve carbon neutrality in its operations.

Chiara Ferracioli-Millar, Director of Sustainability Reporting at NXP Semiconductors, writes on LinkedIn: “I’m proud to share that we’ve launched our first Climate Transition Plan!

“This plan lays out our roadmap towards decarbonisation – where we are today, where we need to go and how we intend to get there. 

“It’s the result of a lot of thoughtful work, collaboration and ambition, and an important milestone in turning commitments into action.”

NXP's decarbonisation roadmap

NXP predicts that its business will expand, driven by increased production volumes, expanded internal or external manufacturing capacity and the development of more advanced semiconductor technologies.

It is expecting an increase in its emissions alongside this business growth, which has formed part of its Transition Plan.

The plan involves a three-pronged approach to reducing the company’s Scope 1 and 2 emissions:

1. Chemical management: reducing, removing or replacing high-GWP substances used in manufacturing processes
2. Energy efficiency: lowering absolute and normalised energy consumption through process optimisation and equipment upgrades
3. Renewable energy transition: increasing the use of renewable energy to reduce Scope 2 emissions and move towards a carbon-free energy supply, where available.

This aims to support NXP’s carbon neutrality targets and strengthen operational resilience while aligning its environmental goals with business performance.

NXP is also working towards Scope 3 emissions reductions through grid decarbonisation, supplier engagement, product energy efficiency and operational opportunities for further reductions.

Rafael Sotomayor, President and CEO of NXP Semiconductors, says: “We believe that innovation and sustainability are inseparable. As demand grows for secure, energy-efficient technologies, we remain equally committed to minimising our climate impact while bringing intelligent systems to the edge.

“Our roadmap is designed to achieve emissions reductions while creating long-term value. By targeting our primary sources of emissions, these transition actions not only reduce our footprint but also enable our customers and suppliers to advance their own climate-transition goals.

“I’m proud to present our inaugural Climate Transition Plan, which underscores our commitment to continuous learning, adaptability and measurable progress. Together, we can make the future brighter.”

2025 Sustainability Report

In its 2025 Corporate Sustainability Report, NXP outlines its goals to work alongside its Climate Transition Plan.

It aims to achieve a 35% reduction in Scope 1 and 2 absolute emissions by 2027 compared to a 2021 baseline.

NXP is also targeting a 35% reduction in Scope 3 absolute emissions by 2033, compared to a 2022 baseline.

Its long-term target is to achieve carbon neutrality by 2035 for Scope 1 and 2.

NXP says in its report that its manufacturing, non-manufacturing and office sites mainly source energy from the local electrical grid. 

The company purchases renewable electricity where possible and it has installed on-site renewable electricity installations at select manufacturing locations.

Its absolute electricity consumption related to manufacturing sites has decreased by 2% compared to 2024 and its renewable electricity usage reached 47%.

In 2025, NXP recycled 61% of its wastewater, achieving its 2027 goal of 60%.

It also decreased its water withdrawal by 10% compared to 2024.

Jennifer Wuamett, EVP, General Counsel, Chief Sustainability Officer at NXP Semiconductors, says: “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.”