Supplier Code of Conduct


Supplier Code of Conduct

Download the Nexperia Supplier Code of Conduct here

Nexperia Supplier Code of Conduct


Nexperia B.V. (“Nexperia”) is a company with a strong commitment to social responsibility. As a sustainable company, we need our Suppliers to join us in this commitment, based on a shared set of values and principles.

Nexperia pursues mutually beneficial relationships with its Suppliers and contractors (“Suppliers”) and seeks to award business to those Suppliers that are committed to acting fairly and with integrity towards their stakeholders, to observing the applicable rules of law, and to supporting and respecting internationally proclaimed human rights.

Nexperia is committed to ensuring that working conditions in Nexperia’s supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible.

Nexperia’s Suppliers will commit, in all their activities, to operate in full compliance with the laws, rules, and regulations of the countries in which they operate. Beyond this, Nexperia's Suppliers will comply with the Nexperia Supplier Code of Conduct ("Code") using the management systems described in this document.

The Nexperia Supplier Code of Conduct corresponds to the principles of the Code of Conduct (Version 7.0) of the Responsible Business Alliance (RBA). Nexperia is a member of RBA and therefore is committed to support the principles of the RBA Code of Conduct. In addition, the Code is based on the Nexperia Code of Conduct. In some places, the Nexperia Supplier Code of Conduct is more detailed than the Nexperia Code of Conduct, since other Nexperia standards have been added to provide clarity and to incorporate the possibility to assess Supplier’s compliance with the Code.

As Social Responsibility is a program for the whole supply chain, Nexperia’s Suppliers shall comply with the requirements in this standard and require their Suppliers to do the same. Nexperia may visit (and/or have external monitors visit) Supplier facilities to assess compliance with this Code. Violation of this Code may result in an immediate termination of the business relationship. Additionally, any such violation may result in legal action.

Recognized standards, such as the Universal Declaration of Human Rights (UDHR), standards issued by organizations such as the International Labor Organization (ILO), Social Accountability International (SAI), and the Ethical Trading Initiative (ETI), have been used as references in preparing this Code and may be useful sources of additional information. Nexperia extends the Code by maintaining a series of detailed standards that clarify our expectations for compliance.

The Nexperia Supplier Code of Conduct is not intended to create new and additional thirdparty rights, including for employees.

Standards for Labor and Human Rights

Suppliers are committed to upholding the human rights of workers and to treating them with dignity and respect as understood by the international community. This applies to all workers, including temporary, migrant, student, contract, direct employees, and any other type of worker.

The labor and human rights standards are:

Freely Chosen Employment and Prevention of Involuntary Labor and Human Trafficking
Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons is not permitted. This includes transporting, harboring, recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility in addition to unreasonable restrictions on entering or exiting company-provided facilities including, if applicable, workers’ dormitories or living quarters. As part of the hiring process, all workers must be provided with a written employment agreement in a language understood by the worker that contains a description of terms and conditions of employment. Foreign migrant workers must receive the employment agreement prior to the worker departing from his or her country of origin and there shall be no substitution or change(s) allowed in the employment agreement upon arrival in the receiving country unless these changes are made to meet local law and provide equal or better terms.

All work must be voluntary, and workers shall be free to leave work at any time or terminate their employment without penalty if reasonable notice is given as per worker’s contract. Employers, agents, and sub-agents’ may not hold or otherwise destroy, conceal, or confiscate identity or immigration documents, such as government-issued identification, passports, or work permits. Employers can only hold documentation if such holdings are required by law. In this case, at no time should workers be denied access to their documents. Workers shall not be required to pay employers’ agents or sub-agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.

Child Labor Avoidance and Young Workers
Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. The Supplier shall implement an appropriate mechanism to verify the age of workers. If child labor is identified, assistance / remediation is provided. The use of legitimate workplace learning programs, which comply with all laws and regulations, is supported. Workers under the age of 18 (Young Workers) shall not perform work that is likely to jeopardize their health or safety, including night shifts and overtime. The Supplier shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable laws and regulations. The Supplier shall provide appropriate support and training to all student workers. In the absence of local law, the wage rate for student workers, interns, and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.

Working Hours
Studies of business practices clearly link worker strain to reduced productivity, increased turnover, and increased injury and illness. Working hours are not to exceed the maximum set by local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations (such as earthquakes, floods, fires, national emergencies, unpredictable and prolonged loss of electrical power, outbreak of epidemic / pandemic infectious diseases, and periods of prolonged political instability to meet short-term business demand). All overtime shall be voluntary. Workers shall be allowed at least one day off every seven days (do not work more than six consecutive days).

Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours, and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatched and outsourced labor will be within the limits of the local law.

Humane Treatment
There is to be no harsh or inhumane treatment including violence, gender-based violence, sexual harassment, sexual abuse, corporal punishment, mental or physical coercion bullying, public shaming, or verbal abuse of workers; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers

Non-Discrimination / Non-Harassment
Suppliers should be committed to a workplace free of harassment and unlawful discrimination. Companies shall not engage in discrimination or harassment based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information, or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training. Workers shall be provided with reasonable accommodation for religious practices. In addition, workers or potential workers should not be subjected to medical tests, including pregnancy or virginity tests, or physical exams that could be used in a discriminatory way.

Freedom of Association
In conformance with local law, supplier shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination reprisal, intimidation, or harassment.

Standards for Health & Safety

Suppliers recognize that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. Suppliers also recognize that ongoing worker input and education are essential to identifying and solving health and safety issues in the workplace.

Recognized management systems such as ISO 45001 and ILO Guidelines on Occupational Safety and Health were used as references in preparing the Code and may be useful sources of additional information.

The health and safety standards are:
Occupational Safety
Worker potential for exposure to health and safety hazards (e.g., chemical, electrical and other energy sources, fire, vehicles, and fall hazards, etc.) are to be identified and assessed, mitigated using the Hierarchy of Controls, which includes eliminating the hazard, substituting processes or materials, controlling through proper design, implementing engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/tagout), and providing ongoing occupational health and safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well-maintained, personal protective equipment and educational material about the risks associated with these hazards. Reasonable steps must also be taken to remove pregnant women and nursing mothers from working conditions with high hazards, remove or reduce any workplace health and safety risks to pregnant women and nursing mothers including those associated with their work assignments, and provide reasonable accommodations for nursing mothers, if in general breast milk is to be pumped out at the workplace.

Emergency Preparedness
Potential emergency situations and events are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures including emergency reporting, employee notification and evacuation procedures, worker training and drills. Emergency drills must be executed at least annually or as required by local law, whichever is more stringent. Emergency plans should also include appropriate fire detection and suppression equipment, clear and unobstructed egress, adequate exit facilities, contact information for emergency responders, and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment and property.

Occupational Injury and Illness
Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness including provisions to encourage worker reporting, classify and record injury and illness cases, provide necessary medical treatment, investigate cases and implement corrective actions to eliminate their causes, and facilitate the return of workers to work.

Industrial Hygiene
Worker exposure to chemical, biological, and physical agents is to be identified, evaluated, and controlled according to the Hierarchy of Controls. If any potential hazards were identified, suppliers shall look for opportunities to eliminate and/or reduce the potential hazards. If elimination or reduction of the hazards is not feasible, potential hazards are to be controlled through proper design, engineering When hazards cannot be adequately controlled by such means, workers are to be provided with and use appropriate, well-maintained, personal protective equipment free of charge. Protective programs shall be ongoing and include educational materials about the risks associated with these hazards.

Physically Demanding Work
Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing, and highly repetitive or forceful assembly tasks is to be identified, evaluated, and controlled.

Machine Safeguarding
Production and other machinery shall be evaluated for safety hazards. Physical guards, interlocks, and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers.

Sanitation, Food and Housing
Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided by the Supplier or a labor agent, are to be maintained to be clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, adequate lighting and heat and ventilation, individually secured accommodations for storing personal and valuable items, and reasonable personal space along with reasonable entry and exit privileges.

Health and Safety Communication
Suppliers shall provide workers with appropriate workplace health and safety information and training in the language of the worker or in a language the worker can understand for all identified workplace hazards that workers are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training is provided to all workers prior to the beginning of work and regularly thereafter. Workers shall be encouraged to raise any health and safety concerns without retaliation.

Standards for Environment

Suppliers recognize that environmental responsibility is integral to producing world-class products. The Supplier shall identify the environmental impacts and minimize adverse effects on the community, environment, and natural resources within their manufacturing operations, while safeguarding the health and safety of the public.

Recognized management systems such as ISO 14001 and the Eco Management and Audit System (EMAS) were used as references in preparing the Code and may be a useful source of additional information.

The environmental standards are:
Environmental Permits and Reporting
All required environmental permits (e.g., discharge monitoring), approvals and registrations are to be obtained, maintained and kept up-to-date and their operational and reporting requirements are to be followed.

Pollution Prevention and Resource Reduction
Emissions and discharges of pollutants and generation of waste are to be minimized or eliminated at the source or by practices such as adding pollution control equipment, modifying production, maintenance, and facility processes, or by other means. The use of natural resources, including water, fossil fuels, minerals, and virgin forest products, is to be conserved by practices such as modifying production, maintenance and facility processes, materials substitution, re-use, conservation, recycling, or other means.

Hazardous Substances
Chemicals, waste, and other materials posing a hazard to humans, or the environment are to be identified, labelled, and managed to ensure their safe handling, movement, storage, use, recycling or reuse, and disposal.

Solid Waste
Suppliers shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste (non-hazardous).

Air Emissions
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting substances, and combustion byproducts generated from operations are to be characterized, routinely monitored, controlled, and treated as required prior to discharge. Ozone depleting substances are to be effectively managed in accordance with the Montreal Protocol and applicable regulations. The Supplier shall conduct routine monitoring of the performance of its air emission control systems.

Materials Restrictions
Suppliers are to adhere to all applicable laws, regulations, and Nexperia's requirements regarding the prohibition or restriction of specific substances in products and manufacturing, including labelling for recycling and disposal.

Suppliers involved in manufacturing materials for Nexperia end-products or branded products must comply with the latest version of “Nexperia's List of Hazardous Substances in Products and Packaging” (XPR-0007). Upon request, they must provide Nexperia with a full material declaration using the “Nexperia Material Declaration Form” (XTE-0008) and necessary supporting documents, such as Safety Data Sheets. 

Additionally, Suppliers of product-related materials and packaging must show compliance with the “Nexperia Test Requirements for Hazardous Substances” (XPR-0009), which are based on EU's RoHS Directive 2011/65/EU (with amendment 2015/863/EU) for product materials, and Directive 94/62/EC for packaging materials. Analytical test reports carried out by ISO/IEC 17025-accredited third-party labs must be carried out on the homogeneous material level and remain valid for one year after issue, after which updates need to be provided by the Supplier upon Nexperia's request. For specific homogeneous materials, extra evidence may be needed as outlined in XPR-0009. Examples include beryllium in metal materials and chlorine, bromine, and antimony contents for materials intended for use in Halogen-Free products.

Regarding process chemicals, Nexperia maintains a list of restricted substances. The term “process chemicals” covers substances and mixtures intentionally used for the manufacturing processes as well as auxiliary chemicals for supportive activities. Suppliers carrying out manufacturing steps on behalf of Nexperia (= External Manufacturer) must comply with the “Nexperia Restricted Process Chemicals List” (XPR-0237). In individual cases, a temporary exception may be granted by Nexperia. In all cases, the External Manufacturer must inform Nexperia about the use of restricted substances. Examples of this, according to XPR-0237, are endocrine disruptors, ozone depleting substances, or CMR substances (Carcinogenic, Mutagenic, or toxic for Reproduction).

Water Management
Suppliers shall implement a water management program that documents, characterizes, and monitors water sources, use and discharge, seeks opportunities to conserve water, and controls channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required prior to discharge or disposal. Suppliers shall conduct routine monitoring of the performance of its wastewater treatment and containment systems to ensure optimal performance and regulatory compliance.

Energy Consumption and Greenhouse Gas Emissions
Suppliers are to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant Scope 1 and 2 greenhouse gas emissions are to be tracked, documented, and publicly reported against the greenhouse gas reduction goal. Suppliers are to look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.

Standards for Business Ethics

To meet social responsibilities and to achieve success in the marketplace, Suppliers and their agents are to uphold the highest standards of ethics, including:
Business Integrity
The highest standards of integrity are to be upheld in all business interactions. Suppliers shall have a zero-tolerance policy to prohibit any and all forms of bribery, corruption, extortion, and embezzlement.

No Improper Advantage
Bribes or other means of obtaining undue or improper advantage are not to be promised, offered, authorized, given, or accepted. This prohibition covers promising, offering, authorizing, giving, or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. Monitoring, record keeping, and enforcement procedures shall be implemented to ensure compliance with anti-corruption laws

Disclosure of Information
All business dealings should be transparently performed and accurately reflected on the Suppliers business books and records. Information regarding Suppliers’ labor, health and safety, environmental practices, business activities, structure, financial situation, and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Falsification of records or misrepresentation of conditions or practices in the supply chain are unacceptable.

Intellectual Property
Intellectual property rights are to be respected, transfer of technology and know-how is to be done in a manner that protects intellectual property rights, and customer and supplier information is to be safeguarded.

Fair Business, Advertising and Competition
Standards of fair business, advertising, and competition are to be upheld.

Protection of Identity and Non-Retaliation
Programs that ensure the confidentiality, anonymity, and protection of supplier and employee whistle-blowers are to be maintained, unless prohibited by law. Suppliers should have a communicated process for their personnel to be able to raise any concerns without fear of retaliation.

Responsible Sourcing of Minerals
Suppliers shall adopt a policy and exercise due diligence on the source and chain of custody of the metals intentionally used in the materials and products they manufacture to reasonably assure that they are sourced in a way consistent with the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" and relevant legislation such as the Regulation (EU) 2017/821 of the European Parliament and the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act.

As a Responsible Minerals Initiative (RMI) member, Nexperia is committed to the practices of the RMI. For this reason, Suppliers are expected to provide sourcing information using the relevant reporting templates such as Conflict Minerals Reporting Template (CMRT), Extended Minerals Reporting Template (EMRT), and Pilot Reporting Template (PRT). In case of nonconformance of a smelter or refiner reported to Nexperia, Supplier shall take all reasonable steps to remedy the non-conformance in a timely manner.

Suppliers are to commit to protecting the reasonable privacy expectations of personal information of everyone they do business with, including suppliers, customers, consumers, and employees. Suppliers are to comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.