Social Responsibility

Workplace Safety

Continued focus on workplace safety keeps our employees safe and our facilities profitable. Safety is a key priority during employee orientation at all facilities and safety is the responsibility of every PACCAR employee. PACCAR’s major manufacturing facilities are equipped with safety and health departments staffed with trained medical personnel.

Company managers address safety enhancements every day in morning meetings; they provide regular and ongoing safety training; and they use displays located in factories to provide all employees with safety-related information. Senior management demonstrates its commitment to workplace safety by awarding the President's Cup for Excellence in Safety at an annual Company ceremony attended by senior executives from all Company locations. PACCAR's consistent focus on workplace safety has resulted in a fatality rate of zero, and a recordable injury/illness rate lower than the U.S. industry average.

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Employee Training and Well-Being

PACCAR’s employee training and development programs are extensive and comprehensive. All new employees receive an orientation and training for their specific positions. Ongoing job- related training is available to meet employees’ and the Company’s needs. Training programs include professional and technical skills training, compliance training, leadership development and management training. Many PACCAR divisions offer apprenticeship and tuition assistance programs to enhance skills through education. PACCAR also offers extensive internship programs to attract future employees.

PACCAR provides robust benefits packages that support physical, emotional and financial well- being. Employee satisfaction and engagement are measured through periodic surveys that result in quantitative metrics leading to workplace enhancements.

PACCAR is an equal opportunity employer and provides a workplace free from discrimination and harassment. PACCAR values workplace diversity. PACCAR diversity councils operate throughout PACCAR’s global businesses. The diversity councils’ goals are to enhance business success through diverse and inclusive workplaces. The PACCAR Women’s Association seeks to increase women in PACCAR leadership roles by providing educational, networking and mentoring opportunities to employees at all levels. PACCAR Inc, Kenworth, Peterbilt, PACCAR Parts and Dynacraft were each honored by the Women in Trucking Association as a 2020 “Top Company for Women to Work for in Transportation.” More information about PACCAR’s commitment to diversity and inclusion can be found at https://jobs.paccar.com/content/Diversity-and-Inclusion/?locale=en_US.

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PACCAR Celebrates “Top Company for Women” Recognition in New York

Community

PACCAR and its employees are leaders in our communities. Strong communities assist those less fortunate with a range of social services. Employees organize support for various charities and civic organizations such as United Way, Juvenile Diabetes Research Foundation, Race for the Cure, and local food banks. To prepare school-age children for the skills to succeed in the 21st century workforce, PACCAR and its many committed employee volunteers support literacy and other educational programs. This includes purchasing books for children in need, and contributing funds and volunteer time to supplemental education programs such as Junior Achievement.

Philanthropy

PACCAR's proud tradition of giving back to the community began with the founding of the company and continues today through PACCAR and the PACCAR Foundation. PACCAR has contributed over $200 million to educational, social services and arts organizations since 1951. PACCAR makes these grants in locations in which its employees work and live worldwide. PACCAR has recently contributed $1.5 million to nonprofit organizations that promote diverse and inclusive communities, including UNCF, Special Olympics USA Games, YWCA, Landesa, Northwest African American Museum and Lighthouse for the Blind. PACCAR and its employees donated over $2 million in 2020 to assist communities impacted by the COVID-19 pandemic. More information can be found at https://www.paccar.com/about-us/philanthropy/.

Code of Business Conduct

The manner in which PACCAR conducts its business, and the opinion of our shareholders, employees, customers and the public, are all very important to the continued success of PACCAR. Over the years PACCAR, through its commitment to integrity and honesty as demonstrated by PACCAR’s directors, officers and employees, has earned an excellent reputation as a responsible corporate citizen. It is the responsibility of each director, officer and employee of PACCAR to review the Code of Business Conduct and become familiar with how it applies to specific business situations. All PACCAR employees receive ongoing training regarding the Code of Conduct and are expected to comply with the law and the highest standards of honest and ethical conduct.

PACCAR has a long history of achieving high standards of performance related to human rights and compliance with laws and regulations in all countries where the Company does business.

The PACCAR Code of Business Conduct contains information explaining how employees can confidentially report violations of the Code through a hotline, and PACCAR’s anti-retaliation policy. The Code of Business Conduct also includes policies regarding conflicts of interest, bribery, corruption, discrimination, harassment, competition law, and other topics. The Code of Business Conduct can be found at https://www.paccar.com/about-us/board-of-directors/code- of-business-conduct/.

Supplier Code of Conduct

PACCAR expects its suppliers to comply with the standards set forth in its Supplier Code of Conduct, and all laws, rules and regulations in the countries in which they operate. PACCAR selects suppliers after detailed reviews of their operations. PACCAR conducts periodic on-site supplier visits, announced and unannounced, for various reasons, including verification and auditing of contract compliance. These expectations apply to all PACCAR suppliers, their affiliates and locations worldwide. Suppliers who fail to meet these standards risk the loss of all existing and future business with PACCAR. PACCAR suppliers will:

  • Comply with all applicable laws concerning minimum employment age, working conditions, compensation and benefits; never employ slave, indentured or forced labor, or engage in human trafficking.
  • Treat employees with dignity and respect; never discriminate on the basis of race, color, gender, gender identity or expression, sexual orientation, nationality, religion, age, or marital status.
  • Respect the laws of each country governing the right of employees to join or not to join lawful organizations.
  • Enhance employee safety and health through proper workplace design, operational controls, preventative maintenance and safe work procedures.
  • Comply with anti-corruption laws in every country in which they do business. Never directly or indirectly receive or offer bribes, kickbacks, or other corrupt payments, to or from any person or organization including government and private organizations, their officials, agents and employees.
  • Accurately record and disclose information regarding business activities and performance in accordance with applicable laws and regulations as well as prevailing industry business practices.
  • Respect intellectual property rights and safeguard customer information and technologies by implementing processes that protects those rights.
  • Use due diligence to avoid the possibility of inclusion of conflict minerals in their products.
  • Establish product design and manufacturing processes that assure the integrity and safety of their products and inform PACCAR immediately if a question arises concerning the safety of a product sold to PACCAR.
  • Implement processes to protect the confidentiality of employees who in good faith report potential unethical or illegal activity.
  • Use, maintain and dispose of hazardous and non-hazardous waste as required by applicable laws and regulations.
  • Minimize production of solid waste, wastewater, and hazardous air emissions by implementing appropriate conservation measures
  • Notify PACCAR immediately of any violation of these standards.

State of California Transparency in Supply Chains Act

PACCAR is committed to ensuring that its suppliers do not use slave labor or engage in human trafficking. PACCAR’s Supplier Code of Conduct prohibits suppliers from using forced labor of any kind.
PACCAR suppliers certify that they comply with laws regarding minimum employment age, working conditions and compensation, and do not engage in slavery or human trafficking. Noncompliance is grounds for termination and elimination from the PACCAR supply base.

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.

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