Environmental responsibility

TI has a strong history of environmental stewardship and works to continuously improve environmental performance and efficiency at its sites worldwide. We take pride in the billions of chips we produce annually and in our ability to meet customer expectations and manage risks, while the majority of our competitors outsource manufacturing.

We make significant investments to operate sustainably, reduce our carbon footprint, better manage waste and air emissions, and reduce water and energy consumption. Additionally, we source and use raw materials responsibly and conscientiously manage the potential environmental impacts of our operations around the world. We foster sustainability at our sites through operational efficiency, quality, risk management, compliance and transparency.

Our expectation is 100 percent compliance with applicable environmental laws and regulations. We also establish goals and related programs, and aim for continuous improvement. Each year, TI spends millions in environmental-protection-related capital and operating expenses on such items as site decommissioning, controls and monitoring system improvements, remediation and environmental, safety and health (ESH) personnel overhead.

Our ESH policy and principles, signed by our chairman, president and CEO, guide our efforts to operate sustainably – from efficient product distribution and employee commuting to maintaining compliance with environmental regulatory requirements. We manage these efforts through the establishment and review of relevant objectives and targets for our operations.

Additionally, the Electronic Industry Citizenship Coalition (EICC) Code of Conduct aligns with our environmental management policies. As an EICC member in good standing, we work with others in our industry to align and adopt best practices, and encourage our first-line suppliers to do the same. The supply chain accountability section describes our environmental policies and what we expect from our suppliers.

Each of our manufacturing sites report its environmental performance using a scorecard that measures energy use, chemical reduction and water efficiency. We share scorecards internally for transparency and best-practice awareness, and use them as an accountability mechanism.

A dedicated internal audit team supports our robust ESH audit program. Corporate audits verify compliance with local laws and regulations, as well as TI’s ESH standards. Audits occur at each facility at least every three years; in interim years, the facilities perform self-assessments. We also benchmark against our peers through activities within the Semiconductor Industry Association, European Semiconductor Industry Association and the Semiconductor Manufacturing Technology consortium.

All of our international manufacturing sites (15 total) maintain certification from the International Organization for Standardization’s (ISO) Quality Environmental Management System (ISO 14001). Learn more in the certifications web page on our quality website.

Risks and opportunities

A significant challenge for our operations is addressing new and emerging regulations and requirements. Some of these require we take minimal action (such as conducting additional reporting), while others require more investment (such as modifying treatment systems). Our priorities are to continue operating in compliance with local laws and regulations, and to also continue meeting customer requests and inquiries while minimizing the impact to our factories.

Governance

TI’'s vice president of worldwide facilities (WWF), who reports directly to the chief financial officer, oversees the company’s operational environmental policies and performance. A vice president of worldwide ESH also reports to the vice president of WWF. She is responsible for ensuring the safety and health of TIers globally while also ensuring that we comply with environmental laws in the countries where we do business.

One of the primary functions of the Audit Committee of TI's board of directors is to assist the board in its oversight of our internal control systems, our compliance with legal and regulatory requirements, and the performance of our internal audit function and independent auditors. Where environmental matters may have significance for us, we include these impacts in reviews to help the Audit Committee make appropriate decisions and fulfill their oversight responsibilities.

We have teams comprising cross-functional experts who help address specific aspects of our operations and improve site efficiency. These teams – the Greenhouse Gas (GHG) Strategy team, Energy team and Water Strategy team – periodically brief our leaders regarding status and progress.

TI offers several channels through which both internal and external stakeholders can submit environmental questions, concerns or grievances, including dedicated community email addresses and the TI Ethics Office, which also allows anonymous inquiries. We route questions to the appropriate experts to assess and respond.

As part of our efforts toward continuous improvement, TI establishes annual or five-year goals as needed to address resource efficiency, waste or emissions.

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