Conflict Minerals and Critical Materials

PACCAR is committed to complying with the Dodd-Frank Act’s disclosure requirements concerning "Conflict Minerals" – tin, tungsten, tantalum and gold – whose sourcing has been identified with human rights abuses in the Democratic Republic of Congo and adjoining countries (the "Conflict Area").

PACCAR has developed a due diligence process, based on the guidance provided by the Organisation for Economic Cooperation and Development (OECD), to mitigate the risk of inclusion of Conflict Minerals in its products. This process requires the Company and its suppliers to perform due diligence and document either (1) that the Conflict Minerals used to manufacture products for PACCAR originate outside the Conflict Area or come from recycled or scrap sources, or (2) if sourced from within the Conflict Area that they come from mines or smelters certified by an independent third party not to benefit armed groups ("Conflict-Free"). PACCAR is participating in the Automotive Industry Action Group and the Conflict-Free Smelter Program developed by the Electronic Industry Citizenship Coalition, Incorporated and Global e-Sustainability Initiative to identify the sources of Conflict Minerals in its products. If any sources within the Conflict Area are identified, PACCAR will work with its suppliers, in accordance with OECD guidance, to take reasonable steps to verify that they are Conflict-Free.

A critical material is defined as a material both essential in use and subject to the risk of supply restriction.  PACCAR uses a limited number of critical materials in its business, including platinum group metals.  PACCAR does not directly source any critical materials.  Rather, these materials are present primarily in exhaust aftertreatment system components provided by suppliers.  PACCAR mitigates risk from critical materials by entering long-term agreements with high quality, reputable suppliers that adhere to PACCAR’s Code of Supplier Conduct.  PACCAR is also prepared to work with alternative suppliers in the case of supply disruption of critical materials.