Texas Instruments

Environmental responsibility

Overview

Risks and opportunities | Goals | Awards | Governance | Policies and principles | Training and awareness | Certifications | Performance monitoring | Assurance

TI is committed to environmental stewardship and continuous improvement.

We manage the majority of our own semiconductor manufacturing, which allows us to better control associated risks and develop quality devices. While we do outsource the manufacturing of our Education Technology and some semiconductor products, we conduct similar due diligence to ensure compliance and drive improvements.

Risks and opportunities

TI's major organizational environmental risks and opportunities in 2013 included:

Category Risks Opportunities
Materials Our operations could be affected by laws and regulations that impact the sourcing of materials required for our manufacturing processes. Collaboration on the development and implementation of industry tools and standards could help reduce risks and compliance challenges and streamline issues management.
Energy Our operations could be impacted by high costs or limited or delayed access to energy. Continued identification of cost-effective operational efficiencies and renewable sources of energy could reduce costs and overall use, as well as dependence on traditional utilities.
Water Our operations in water-stressed regions could be affected by high costs for or limited or delayed access to water. Continued identification of cost-effective operational efficiencies and conservation activities at a watershed level could reduce costs and enhance water accessibility in the long term.
Emissions/effluents/ waste Our manufacturing processes generate waste, which requires proper management and disposal in countries that are still developing waste-management policies. Increased oversight of waste handling and processing managed by suppliers globally could further waste efficiency and reduce disposal costs.
Products Our operations could be affected by changes in global chemical laws and regulations specific to how we manufacture our products.
Compliance Our operations could be affected by changes in environmental, safety and health laws and regulations. See additional detail in TI's 10-K Report
Transportation Our operations could be affected by unexpected interruptions to timely and accurate delivery. Optimization of distribution locations and methods could reduce costs and associated emissions.

Goals

TI's global environmental, safety and health (ESH) management system guides our discussions and aids in determining and establishing annual plans at our sites worldwide. We established and reported multiyear sustainability goals for the first time in 2011. We set annual goals and also work toward broader five-year goals. The longer-term goals allow for flexibility in our approach to accommodate large swings in results due to changing business conditions.

Click here to see our summary of annual and long-term goals and related performance.

Awards

TI continued to receive awards in 2013 for outstanding environmental performance, including:

  • The Dow Jones Sustainability North America Index member component designation, awarded for leadership in sustainability.
  • Japan's Ministry of Economy and Industry Tohoku Bureau's Energy Management Excellence Award for TI's Aizu site.
  • The League of American Bicyclists' "Bicycle-Friendly Business" designation.
  • The North Texas Commission Working for Clean Air Awards program's "Most Innovative" designation.
  • The Philippine Chamber of Commerce and Industry's Special Citation for Excellence in Ecology and Economy Award.
  • The Pollution Control Association of the Philippines' "Champion for Recycling" designation for TI's Baguio site.

Click here to see a full list of our environmental accolades.

Governance

TI's ESH management team, with oversight by the vice president of worldwide facilities, directs and oversees environmental compliance activities, as well as operational and product improvements. The team also sets ESH goals and policies. The Audit Committee of TI's board of directors is briefed every two years, or as needed, on ESH issues and performance.

Policies and principles

TI has a set of companywide ESH policies that define requirements for our operations worldwide. It is the responsibility of every employee and contractor to understand and support TI's ESH policy and principles.

We also have policies and expectations for our suppliers, discussed in the Supplier Stewardship section of this report.

Training and awareness

All of our employees receive ESH training to protect their safety and health while at work; others receive relevant training and communications specific to their role and working environment. We monitor the completion of training through TI's Ethics and Compliance Training program. We also hold TI leaders accountable for meeting ESH goals, in line with other policy deployment objectives.

Additionally, we:

  • Train and deploy site-specific ESH teams to implement energy- and water-efficiency projects, and share best practices across the globe.
  • Encourage employees to meet with site ESH steering committees to suggest improvements and activities.
  • Appoint site energy champions to share best practices and lessons learned globally.
  • Provide mechanisms for employees to recycle paper, electronics, food and cafeteria waste.
  • Encourage employees to commute to work by subsidizing mass transportation and promoting bicycling.
  • Create opportunities for employees to participate in environmentally focused volunteer projects, such as cleaning up parks and facilities and planting trees.
  • Recognize employee teams for implementing innovative ESH strategies and improving behaviors, and give annual awards for outstanding ESH performance to our manufacturing sites that best exemplify core ESH values.

Certifications

Currently, 95 percent (19 of 20) of our manufacturing and assembly/test sites worldwide are certified to two international ESH management system standards: the British Standard Occupational Health and Safety Assessment Series (BS OHSAS 18001:2007) and International Organization for Standardization (ISO) 14001:2004. In 2013, we began preparing for the remaining site, in Chengdu, China, to achieve OHSAS 18001 and ISO 14001 certification by 2014.

Performance monitoring

We designed our global ESH management systems to consistently assess and monitor performance, drive plans for continuous improvement, and ensure the timely completion of required activities. Our EMS program includes:

  • Regular reviews and updates to TI's internal ESH standards to improve clarity, eliminate unnecessary legacy requirements, and focus on risk.
  • Comprehensive training to build awareness and understanding of ESH protocols.
  • Third-party monitoring of changes to the global regulatory landscape.
  • Routine site visits with ESH teams to assess current conditions, develop action plans, orient new hires, and audit operations.

Additionally, TI engages with the Semiconductor Industry Association, World Semiconductor Council, Electronic Industry Citizenship Coalition and other associations to collectively benchmark best practices and address mutual challenges, such as sourcing conflict-free minerals and responding to legislation.

Assurance

We do not currently use a third party to audit the environmental data presented in this report; however, we do verify the information through rigorous internal review processes. In addition, our global EMS, including the collection of data, is audited as part of our ISO and OHSAS certifications.

In 2013, TI's internal audit services assisted with a review of our energy data collection process. While this exercise did not serve as a formal audit, it helped verify our current data management practices to ensure consistent and appropriate energy data collection and reporting methodologies. Energy data is among the most complex nonfinancial performance information we share externally, which is why we started the review process with this single data set, including total, direct, and indirect energy use.

Operating efficiently and conscientiously to conserve resources and protect the environment.