2023 Corporate Citizenship Report
CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | ||
Contents
Energy | 11 | |
Water | 12 | |
Waste and material management | 13 | |
Product logistics | 14 | |
Workplace | 15 | |
Working at TI | 16 | |
Our people and values | 16 | |
Recruitment | 17 | |
Diversity and inclusion | 18 | |
Talent development | 20 | |
Compensation and benefits | 21 | |
Safety and health | 22 |
Cover image: TI's first on-site rooftop solar installation at its Bangalore, India, facility.
Responsible business practices | 23 | |
Governance | 24 | |
Ethics and compliance | 25 | |
Product quality | 26 | |
Supply chain responsibility | 27 | |
Responsible minerals sourcing | 29 | |
Labor and human rights | 30 | |
Risk management and | 31 | |
business continuity | ||
Information protection | 32 | |
Public policy | 33 |
Community impact | 34 | |
Giving | 35 | |
Volunteering | 37 | |
Appendices | 38 | |
Performance data | 39 | |
Global Reporting Initiative (GRI) Index | 53 | |
Task Force on Climate-Related | 75 | |
Financial Disclosures (TCFD) | ||
Sustainability Accounting | 76 | |
Standards Board (SASB) | ||
External assurance statement | 77 | |
TEXAS INSTRUMENTS | 2 | 2023 Corporate Citizenship Report |
CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | |
TI at a glance
Founded in 1930
Headquartered in Dallas, Texas
Our semiconductor chips can be found in every type of electronic system - from electric vehicles to industrial robots, solar panels to satellites.
15 manufacturing sites worldwide,
producing tens of billions of chips each year
$17.52 billion
$13.04 $3.37 $1.11
Analog Embedded Other (in billions of dollars)
Capital expenditures: $5.1 billion
R&D: $1.9 billion
Key markets
Industrial - 40%
Automotive - 34% Personal electronics - 15% Communications equipment - 5% Enterprise systems - 4%
Other - 2%
About 34,000 employees
≈15,000 in the Americas
≈17,000 in Asia-Pacific
≈2,000 in Europe
Principal manufacturing and design operations1
Dallas, Texas | Freising, Germany | Richardson, Texas |
Aguascalientes, Mexico | Houston, Texas | Santa Clara, California |
Aizu, Japan | Kuala Lumpur, Malaysia | Shanghai, China |
Baguio, Philippines | Lehi, Utah | Sherman, Texas |
Bangalore, India | Melaka, Malaysia | South Portland, Maine |
Chengdu, China | Miho, Japan | Tucson, Arizona |
Clark, Philippines | New Taipei City, Taiwan |
≈80,000 products for more | Publicly traded |
than 100,000 customers | (Nasdaq: TXN) |
1 TI defines major locations (significant operations) as all manufacturing facilities and design and sales offices 50,000 square feet or larger, or those with employee populations greater than 100 as of Dec. 31, 2023.
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES |
Letter from our CEO
For decades, Texas Instruments has operated with a passion to create a better world by making electronics more affordable through semiconductors. With each generation, semiconductor technology has become more reliable, more affordable and lower in power, making it possible for semiconductors to go into electronics everywhere. Our passion continues to be alive today, as we help customers develop electronics and new applications that are contributing to a more sustainable future.
Our founders had the foresight to know that passion alone was not enough, and that building a great company required a special culture to thrive for the long term. For many years, we have run our business with three overarching ambitions in mind:
• First, we will act like owners who will own the company for decades.
• Second, we will adapt and succeed in a world that is ever-changing.
• And third, we will be a company that we are personally proud to be a part of and that we would want as our neighbor.
With these ambitions guiding our decision-making for the long term and our products helping create a better world, we are confident that our collective efforts will be impactful and long lasting.
We take great pride in our commitment to being a good corporate citizen, which impacts our communities and the world in two ways.
First, our ambitions guide how we run our business and are foundational to ensuring that we operate in a sustainable, socially thoughtful and environmentally responsible manner. Central to these ambitions is a belief that in order for all stakeholders to benefit, the company must grow stronger over the long term.
Second, semiconductors will play a critical role in creating a better world and helping reduce the impact on the environment.
As engineers, we are fortunate to work on exciting technology that helps our customers innovate to create a better world. Technology is the foundation of our company, and our semiconductor products are core to the development of electric vehicles, energy storage systems, renewable energy applications and many other sustainable technologies.
In 2023, we continued to invest in and expand our internal manufacturing capacity roadmap for the long term while continuing to reduce our environmental impact. Our industry- leading 300mm wafer fabs will be entirely powered by renewable electricity by 2025, with additional milestones to reach 100% across our U.S. operations by 2027, and 100% worldwide by 2030.
I am proud of how TIers performed in 2023. We ensured safe workplaces for our employees, delivered innovative technology and applications, added additional capacity to support customer demand, and gave back to our communities when needs continued to be great.
You can count on us to stay true to our ambitions: to think like owners for the long term, adapt and succeed in a world that's ever-changing, and behave in a way that makes our stakeholders proud. When we're successful, our employees, customers, communities and shareholders all win.
Haviv Ilan
President and CEO
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES |
Our commitment to corporate citizenship
We take great pride in being a good corporate citizen, which impacts our communities and the world in two ways:
- First, our ambitions guide how we run our business and are foundational to ensuring that we operate in a sustainable, socially thoughtful and environmentally responsible manner. Central to these ambitions is a belief that in order for all stakeholders to benefit, the company must grow stronger over the long term.
- Second, semiconductors will play a critical role in creating a better world and helping reduce environmental impacts.
Since 2006, TI has published program information, goals, progress on goals and relevant data, including a focus on our workplace, environmental sustainability and community impact as part of its commitment to being a good corporate citizen.
Report overview
As in previous years, our 2023 Corporate Citizenship Report provides insight into how we think about - and how we perform
- in various areas relevant to our business, using these widely accepted reporting frameworks:
- The Global Reporting Initiative (GRI).2
-
The Task Force on Climate-Related
Financial Disclosures (TCFD).3 -
The Sustainability Accounting
Standards Board (SASB).4 - The CDP disclosure framework.5
We make these disclosures available at TI.com/citizenship.
A team of TIers volunteer to refresh the community garden outside of Ignacio Zaragoza Elementary School in Dallas, Texas.
- The GRI is an independent, international organization that helps businesses take responsibility for their impacts by providing them with a global common language to communicate those impacts.
- The Financial Stability Board established the TCFD to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit and insurance underwriting decisions.
- The SASB is an independent nonprofit organization that sets standards to guide companies' disclosure of sustainability information to their investors.
- The CDP is a nonprofit that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES |
2023 highlights
In 2023, we made continued progress toward developing TIers and creating an inclusive workplace, keeping our people safe, reducing our environmental impact, and giving back to our communities when needs continued to be great.
Working at TI
We bring together 34,000 of the world's smartest people to create a better world by making electronics more affordable through semiconductors.
Building stronger communities
Our ambition to be a company that we are personally proud to be a part of and would want as our neighbor guides our work to build stronger communities.
Creating a sustainable future
TI continued to invest in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.
30+ | Honors for talent | 40+ | Average learning |
development and | |||
hours per TIer | |||
diversity programs | |||
15 | groupsEmployee resource |
$62 million | 277,800 hours |
In giving by TI, the | Employees and retirees |
TI Foundation, employees, | volunteering to help others |
retirees and other giving |
22%
84%
Reduction in Scope 1 and Scope 2 GHG emissions (vs. 2015)
Waste diverted from landfills
19%
29%
Renewable electricity used
Water reused
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | |
Environmental sustainability
TI takes great pride in being a good corporate citizen and has a long-standing commitment to responsible, sustainable manufacturing.
We remain committed to our long-term environmental sustainability programs of conserving water and other natural resources, reducing GHG and air emissions, minimizing energy use, and diverting landfill waste.
This expansion of TI's Kuala Lumpur facility will become one of the company's two new assembly and test sites in Malaysia.
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | |
Reducing environmental impact
TI takes great pride in being a good corporate citizen and has a long-standing commitment to sustainable manufacturing and environmental stewardship.
For nearly a decade, our environmental sustainability strategy has aligned with our long-term capacity plan to meet demand, as semiconductor growth in electronics - particularly in industrial and automotive markets - is expected to continue well into
the future.
As a semiconductor company that manufactures tens of billions of chips per year, our primary focus is to drive efficiencies in our fabrication process. We set multiyear sustainability goals to guide our work, aimed at reducing GHGs, energy and water consumption, and landfill waste (outlined on the following page).
Additionally, we make significant annual investments across our manufacturing footprint to reduce negative environmental impacts, including:
- Implementing hundreds of water and energy conservation projects.
- Installing newer, more efficient manufacturing technologies.
- Retrofitting existing factory equipment with advanced abatement technologies.
- Reducing the use of nonessential fluorinated gases.
- Steadily increasing our use of electricity from renewable sources.
- Reusing and recycling materials and using benign substances.
These investments are advancing our sustainability efforts as we expand production capacity. In the last three years, TI opened or began construction on five new 300mm semiconductor wafer fabrication sites in the U.S.
Expanding our commitments
Increases in chip production require additional action to help achieve our goals. In early 2024, we announced aggressive new targets to expand our use of renewable electricity to reduce scope 2 GHGs. We aim to use renewable sources to power:
- 100% of TI's 300mm factories by 2025.
- 100% of our U.S. operations by 2027.
- 100% of our global operations by 2030.
Continued investments
In 2023, TI installed more efficient abatement systems and remote plasma cleaning methods, and procured 93,572 more megawatt hours (MWh) of renewable electricity than the year before. While TI's absolute scope 1 and scope 2 GHG emissions increased slightly over 2022 due to ramp-up activities and a 3.9% increase in energy use, these investments have enabled us to reduce these emissions by 22% since 2015.
Additionally, the water-efficiency projects we completed conserved 264 million gallons in 2023, the equivalent of 4.1% of TI's 2022 water use. We also diverted 84% of materials from landfills, further mitigating environmental impacts.
We know there's more work to be done. With our ambitions guiding our decision-making for the long term and our products helping create a better world, we are confident that our collective efforts will be impactful and long lasting.
Harald P. works to design high-voltage power conversion systems in Freising, Germany.
TI semiconductor products are and will increasingly play a critical role in helping reduce the impact on the environment. Our semiconductors are
helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification, renewable energy and energy storage.
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | |
Environmental goals and progress
TI implements programs to reduce GHG emissions, energy, water and waste. The following table summarizes the progress we are making toward our goals.
Focus | Goal | Progress by year-end 2023 | ||
Greenhouse gas | TI actions to reduce emissions: | By year-end 2025, reduce: | Reduced GHG emissions by 22%. | |
emissions | • Purchase electricity from renewable energy sources. | Absolute scope 1 and scope 2 | ||
• | Install emissions abatement devices. | emissions by 25% from a 2015 | ||
• | Use alternative gases and chemicals with lower global warming potential. | base year.6 |
- Optimize product manufacturing, shipping and distribution.
- Avoid unnecessary business travel and subsidize employee commuting at certain sites.
Energy | TI actions to reduce energy consumption: | By year-end 2025, reduce: | Reduced energy intensity per chip by 10%. |
• Design and operate buildings and fabrication sites to optimize efficiency and achieve Leadership in Energy and Environmental | Energy intensity per chip by | ||
Design (LEED) Gold certification7 for all new buildings. | 50% from a 2015 base year. |
- Upgrade and refurbish tools and equipment.
- Use sensors and other automated controls.
- Implement routine energy conservation projects.
Water | TI actions to reduce water consumption and improve water reuse: | In 2023, conserve: | Conserved the equivalent of 4.1% of 2022 | |
• | Improve the efficiency of our deionized water plants by optimizing the recovery rates of our reverse-osmosis filters. | The equivalent of 3.4% of | total water usage. | |
• | Seek opportunities to reuse water throughout our operations, including scrubbers and other downstream uses. | 2022 total water usage. |
- Reduce manufacturing tool water use by optimizing flow rates.
- Identify additional manufacturing tools where water can be reused in other processes.
- Expand the use of microfilters and ultrafilters to recover more wastewater.
Waste and material | TI applies a three-step approach to waste and material management: | In 2023, divert: | Diverted 84% of solid waste materials | |
management | • | Examine what we need. | 90% of solid waste materials | from landfills. |
• | Reuse what we can. | generated from landfills. |
- Recycle what is allowed.
- TI adjusted its 2015 GHG emissions baseline from 2,471,357 to 2,832,709 MTCO2e in the 2021 Corporate Citizenship Report to reflect structural changes to its operations in line with the guidance provided by the World Business Council for Sustainable Development and World Resources Institute's "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard."
- LEED is the world's most widely used green building rating system.
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CONTENTS | TI AT A GLANCE | OUR COMMITMENT | ENVIRONMENTAL SUSTAINABILITY | WORKPLACE | RESPONSIBLE BUSINESS PRACTICES | COMMUNITY IMPACT | APPENDICES | |
Greenhouse gas emissions
Our commitment to reduce GHG emissions
TI sets GHG emission and energy reduction goals to reduce negative environmental impacts and improve efficiency.
By 2025, TI aims to reduce absolute scope 1 and 2 GHG emissions by 25% from a 20158 base year.
Actions we are taking
We have taken steps to reduce GHG emissions in our operations, shipping and distribution channels, and throughout our supply chain for years.
Scope 1
TI directly emits scope 1 GHG emissions from gases used in manufacturing and fuels consumed on-site, such as natural gas and diesel.9 We are working to reduce these emissions by:
- Upgrading manufacturing tools and technologies to improve efficiency.
- Reducing the use of nonessential fluorinated gases and using alternative gases and chemicals.
- Installing thermal point-of-use abatement devices on tools that treat the exhaust gases used in semiconductor manufacturing.
Scope 2
TI indirectly emits scope 2 GHG emissions from electricity purchased for manufacturing or other operations. To curtail these emissions, we:
- Purchase and use renewable electricity sources around the world.
- Increase the energy efficiency of our manufacturing systems, buildings and tools.
Scope 3
TI reports scope 3 emissions for business travel in its annual CDP survey. In 2024, we will engage a third party to conduct a full accounting and analysis of all applicable upstream and downstream scope 3 categories. TI plans to begin reporting additional relevant scope 3 emission categories in 2025.
Monitoring potential risks
TI faces potential risks and opportunities associated with climate change, which we describe in detail in its most recent CDP response. For information about climate change-related governance and management strategies, see our CDP response, the Emissions section of the GRI Index and the TCFD Index.
Performance
As of year-end 2023, TI had reduced scope 1 and 2 absolute emissions by 22% versus 2015. Thanks to using renewable electricity and installing abatement and efficiency tools, we limited GHG increases to 2.0% over 2022, despite a 3.9% increase in energy use.
For additional GHG data, see Performance Data in the appendix.
Total GHG emissions (million MTCO2e)
2.5 | ||||||||||||||||
2.07 | 2.08 | 2.17 | 2.2210 | |||||||||||||
2.0 | 1.95 | 1.06 | 1.10 | |||||||||||||
1.10 | 1.04 | |||||||||||||||
MTCO2e | 1.01 | |||||||||||||||
1.5 | ||||||||||||||||
Million | ||||||||||||||||
1.0 | 1.11 | 1.12 | ||||||||||||||
1.04 | ||||||||||||||||
0.97 | 0.94 | |||||||||||||||
0.5 | $7.5 | $0 | $0 | $1.0 | ||||||||||||
0.0 | ||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||
Scope 1 | Scope 2 market-based | |||||||||||||||
- TI adjusted its 2015 GHG emissions baseline in the 2021 Corporate Citizenship Report to reflect structural changes to its operations, including the divestiture of a wafer fabrication plant in Scotland and the acquisition of a 300mm wafer fabrication plant in Utah.
- TI has not included emissions from fluorinated heat transfer fluids (FHTFs) in this Corporate Citizenship Report because of varying calculation methodologies and guidance. Under current World Semiconductor Council (WSC) reporting guidance, the association that tracks semiconductor emissions, there is no requirement to track and report FHTFs. Recently introduced U.S. Environmental Protection Agency (EPA) rules for disclosure to the EPA included FHTFs (quantities in kilograms) and we comply with this requirement. Recently, the WSC has aligned on all regions moving to the 2019 Intergovernmental Panel on Climate Change (IPCC) guidance, which includes FHTFs. TI is reviewing the timing of a transition to the 2019 IPCC guidance and will consider the inclusion of FHTF emissions upon adoption. TI estimates the emissions from FHTFs to be approximately 5% of 2023 scope 1 and scope 2 GHG emissions.
- ERM Certification and Verification Services (CVS) provided limited assurance of TI's scope 1 and scope 2 GHG emissions for 2022 and 2023. See Assurance Statement.
TEXAS INSTRUMENTS | 10 | 2023 Corporate Citizenship Report |
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Texas Instruments Incorporated published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 18:51:03 UTC.