Nexperia, the expert in essential semiconductors, has reached a significant milestone by receiving an impressive ESG Risk Rating of 18.7 from Morningstar Sustainalytics in July 2023. This inaugural ESG Risk Rating places Nexperia in the top echelon of companies, ranking among the top 11% out of a total of 221 assessed entities within the semiconductor design and manufacturing sub industry on a global scale.
Morningstar Sustainalytics assessed that Nexperia is at low risk of encountering material financial impacts resulting from Environmental, Social, and Governance (ESG) factors. This assessment underscores Nexperia’s dedication to sustainability and responsible business practices, positioning the company among the top 16% within the larger global semiconductor industry. Furthermore, Nexperia also received a strong overall ESG Risk Management Rating – underscoring the company’s commitment to comprehensive ESG programs, practices, and policies.
Wing Zhang, CEO, expressed his pride in this significant achievement, stating, “We are very proud to have received such a positive rating from Sustainalytics – especially as it is our first ESG Rating. While we’re happy to be moving in the right direction on our Sustainability journey, we fully understand that there’s a lot of work to be done and are committed for the long run. Our people are engaged every day to ensure that we deliver on our Environmental, Social and Governance (ESG) commitments.”
This sentiment was echoed by Stefan Tilger, Chief Financial Officer, who emphasized Nexperia’s dedication to long-term sustainability: “Given the positive results of our first ESG risk rating, we are proud that our efforts have been recognized in Sustainalytics’ assessment, allowing us to position ourselves among the leaders of the semiconductor industry in this field.”
Sustainalytics’ ESG Risk Ratings, employed to gauge a company’s exposure to industry-specific ESG risks and its management of those risks, utilize a multi-dimensional approach. This approach combines risk management and exposure to arrive at a comprehensive assessment of ESG risk, resulting in a comparable ESG Risk Rating across diverse industries. The five categories of ESG risk severity identified by Sustainalytics range from negligible (0-10) to severe (40+), with Nexperia’s low-risk rating highlighting its conscientious management of ESG concerns.
As Nexperia continues on its journey of sustainability and responsible corporate citizenship, the company remains steadfast in its determination to foster positive environmental, social, and governance outcomes for the benefit of all stakeholders. Read all about our ESG efforts in our Sustainability Report 2022 at https://www.nexperia.com/about/sustainability.