Second-Party Opinion Download

Sustainalytics is of the opinion that the NXP Green Innovation Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – research and development of energy-efficient chip design, smart mobility, advanced driver assistance systems, wireless communication infrastructure, edge processing, smart buildings as well as projects related to greening of NXP’s manufacturing and nonmanufacturing activities – are aligned with those recognized by the Green Bond Principles, namely eco-efficient products, energy efficiency, clean transportation, and pollution prevention and control. Sustainalytics considers that NXP’s investments in R&D and the production of certain technologies in the categories enumerated above, and process improvements in their operations will lead to positive environmental impacts and advance several UN Sustainable Development Goals, in particular Goals 7, 9, and 11.

PROJECT EVALUATION/SELECTION

NXP has formed the Green and Sustainable Innovation Bond Committee, comprised of representatives from NXP’s Group Finance, Sustainability and Corporate Strategy organizations, the Chief Technology Officer and other NXP subject matter experts, from time to time. This committee will be responsible for evaluation, selection and allocation of eligible projects to the Green Project Portfolio.

MANAGEMENT OF PROCEEDS

NXP will manage the proceeds of its green bond(s) on a portfolio basis and will strive to ensure on an ongoing basis that the balance in the portfolio matches or exceeds the net proceeds of outstanding bonds. NXP’s Treasury Team will administer and manage the Green Project Portfolio. Pending allocation, proceeds may be held in cash, other short-term liquid instruments, or used to repay outstanding indebtedness. This is in line with market practice.

REPORTING

NXP will make available an allocation report as well as an impact report. These reports will form a part of NXP’s sustainability report until full allocation of the bond(s) net proceeds or in case of any modification to the framework or allocation portfolio. Sustainalytics views NXP’s allocation and impact reporting as aligned with market practice.