Paccar : IFRS Sustainability Report (IFRS Sustainability Report Apr 2026rev1)
PCAR
Published on 05/01/2026 at 02:27 pm EDT
2026
Industrial Machinery & Goods Sustainability Accounting Standard Version 2023-12
Topic
Metric
Disclosure
Energy Management
See TCFD-CDP Report: 7.30.1
Total energy consumed
927,460 MWh
Percent grid electricity
43.7%
Percent renewables
23.2%
Employee Health & Safety
Total recordable incident rate
This document: p. 19
Fatality rate
This document: p. 19
Near miss frequency rate
Consistent with Total Recordable Incident rate.
Fuel Economy & Emissions in Use Phase
Sales weighted fleet fuel efficiency for medium and heavy duty vehicles (Gallons/1,000 ton-miles)
In 2025, the latest models of Kenworth, Peterbilt, and DAF trucks have improved fuel efficiency up to 40% since 2010 compared to previous models (This document: p. 10-15). By 2030, Kenworth, Peterbilt and DAF trucks will improve fuel efficiency by at least 50% when compared to 2010 levels.
Sales-weighted fuel efficiency for non road equipment (Gallons/hr.)
Not applicable to PACCAR's business.
Sales weighted fuel efficiency for stationary generators (Watts/gallon)
Not applicable to PACCAR's business.
Sales weighted emissions of NOx for Marine diesel engines, locomotive diesel engines, on-
PACCAR products are low NOx and compliant with all NOx emissions regulations in all its
road medium- and heavy duty engines, and other non road diesel engines
markets.
Sales weighted emissions of particulate matter for Marine diesel engines, locomotive diesel engines, on road medium- and heavy duty engines, and other non-road diesel engines
PACCAR products are low PM and compliant with PM emissions regulations in all its markets.
Materials Sourcing
Description of the management of risks associated with the use of critical materials
This document: pages 6-8, 23-
30
Remanufacture Design & Services
Revenue from remanufactured products and remanufacturing services
PACCAR's aftermarket parts division sells remanufactured engines and many other remanufactured components.
Activity Metrics
Number of units produced by product category
PACCAR delivered 144,200 new trucks in 2025
Number of employees
25,900 as of December 2025
This report may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise this presentation, whether as a result of new information, future events or otherwise. For the most recent financial, risk and other information about PACCAR, please see our SEC filings and the most recent earnings release available on the Investor Relations page of Investors.PACCAR.com.
This report covers PACCAR Inc. and its consolidated subsidiaries, including manufacturing facilities, operations, and offices worldwide. The data and disclosures encompass product lifecycle environmental, social, and governance performance for the fiscal year ending December 31, 2024, unless otherwise specified. The report excludes joint ventures, independent dealers, and suppliers not under PACCAR's direct operational or financial control.
PACCAR maintains a multi-layered governance framework that provides oversight and accountability from the Board of Directors to operational teams. The Board, through its Audit and Nominating & Governance Committees, monitors key sustainability-related risks, evaluates controls, and oversees responses to regulatory and ESG challenges.
The Compliance & Risk Steering Committee, comprised of executive and senior leaders, is the central forum for compliance and risk strategy. It reviews emerging risks and guides solutions requiring coordinated leadership action. Supporting this, the Global Compliance Working Group brings together leaders from key functions to drive cross-functional collaboration, implement controls and processes, and ensure best practices are applied consistently across the organization.
PACCAR's Sustainability function operates within the same governance structure, aligning strategic oversight, execution, and accountability. It serves as both an input and a beneficiary of enterprise governance by providing sustainability risk insights and leveraging compliance and risk assessments to shape priorities.
A cornerstone of this risk management approach is the annual Double Materiality Assessment (DMA), which informs strategic decisions, risk prioritization, and resource allocation. By embedding DMA into governance, PACCAR strengthens transparency, accountability, and sustainable growth.
Stakeholder engagement is integral to the DMA and sustainability strategy. In 2024-2025, PACCAR engaged employees, customers, suppliers, investors, regulators, and community partners through interviews, surveys, working groups, and awareness sessions across divisions including DAF, Kenworth, Peterbilt, PACCAR Parts, and PACCAR Financial Services. This process ensures sustainability priorities reflect stakeholder expectations and global standards.
The Global Sustainability Working Group coordinated cross-functional input, aligning themes with product planning, development, purchasing, manufacturing, quality, and aftermarket services.
Feedback informed PACCAR's sustainability matrix, metrics, and reporting boundaries.
PACCAR identified substantive sustainability topics through the DMA, considering both financial (enterprise value risks/opportunities) and impact (societal and environmental effects). This report details these topics in alignment with the SASB framework for Industrial Machinery & Goods and IFRS S1 standards.
Contents
PACCAR IFRS-SASB-ESG Report 1
Forward Looking / Cautionary Statements 2
Report Boundaries 3
Compliance and Risk Management 3
Sustainability Strategy 3
PACCAR Environmental, Social and Governance (ESG) Report 6
Environmental Leadership 6
Environmental Policy 6
Operations 7
Environmental Management System 7
IS0 14001, Air Emissions, Water Conservation, Zero Waste to Landfill 8
Energy Management & Efficiency 8
Climate Strategy 9
Climate & Energy Transition Plan 9
Governance 9
Strategy 9
Risk Management 9
Metrics and Targets 9
GHG Emissions 9
Science Based Targets 10
Products Innovation & Stewardship 11
Customer Engagement 12
Pathway Towards Zero Emissions 12
Battery Manufacturing 13
Zero Emission Trucks 13
Low Carbon and Renewable Fuels 14
Advanced Vehicles 14
Remanufacturing 15
Connected Trucks and Driver Training 15
Social Responsibility and Ethical Business Conduct 16
Global Code of Business Conduct 16
Commitment to Integrity 17
Commitment to Human Rights 17
Commitment to Environment, Health, and Safety 17
Honest and Ethical Business Practice 17
Financial Integrity 17
Interaction with PACCAR Partners 17
Global Trade Compliance 17
Responsibility to Investors and Shareholders 18
PACCAR Resources for Reporting Concerns 18
Talent Training & Development 18
Workplace Safety 19
Employee Well-Being 19
Cybersecurity and Systems Availability 20
Management and Training 20
Oversight and Governance 20
Philanthropy & Community 21
Government Relations & Public Policy 21
Government Relations Oversight 22
Company Contributions 22
Supplier Sustainability 23
Supplier Engagement 24
Supplier Performance Monitoring 24
Supplier Code of Conduct 24
Ethical Business Conduct 25
Labor and Human Rights 25
Health and Safety 26
Responsible Sourcing 26
Environment 27
Data Management 28
Sustainable Purchasing 28
Feedback and Violations 29
Corporate Governance 31
Board of Directors 32
Executive Compensation 32
Shareholder Rights 33
Audit and Risk Oversight 34
PACCAR is a global technology leader in the design, manufacturing and customer support of premium medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes aftermarket parts related to its principal business.
PACCAR conducts business to achieve above-average market returns for stockholders, reflect the highest ethical standards, fulfill our legal obligations, and meet our social responsibilities. We strive to gain the favorable regard of customers, shareholders, employees, regulatory authorities, and the general public through superior performance and effective communications.
PACCAR's Sustainability approach that enhances shareholder value is focused on:
Environmental leadership
Social responsibility and ethical business conduct
Corporate governance practices
Environmental Leadership
Reducing the environmental impact of our activities and products is an integral part of our process of continuous improvement. Our commitment to the environment is demonstrated in our energy efficient operations and technologically advanced products.
PACCAR's global industrial leadership includes addressing the environmental challenges facing our own and future generations. PACCAR's environmental management system and policy are designed to focus on the reduction of the environmental impact of the company's activities, products and services. A key premise of PACCAR's environmental policy can be stated simply: It is more environmentally prudent and cost effective to identify a problem before it occurs, than to correct or clean it up afterwards.
The following principles are used to implement PACCAR's environmental policy:
Commitment to compliance with environmental laws.
Development and implementation of prudent practices in company facilities around the globe that often go beyond regulatory compliance.
Comprehensive industry leadership in policy, procedure, training programs and operation audits at all company facilities.
Commitment to continual improvement.
Prevent pollution by continued evaluation of our industrial processes and procedures.
Proactively seek new information and training in order to create, initiate and advance new ideas and approaches to manage environmental exposures before they are mandated by regulations.
PACCAR has focused on responsible environmental stewardship since its founding in 1905. The Company is committed to environmental responsibility in the vehicle production process. Finding ways to reduce waste, reuse materials, conserve energy and reduce the environmental impact of our activities occurs daily in both small and significant ways across the Company. PACCAR is driving smart manufacturing into every aspect of its business because it helps the environment and makes good long-term business sense.
Comply with applicable environmental laws, regulations, and best practices, and obtain and maintain all required permits (e.g., air emissions, stormwater).
Measure and report greenhouse gas emissions using internationally recognized standards and methodologies and demonstrate alignment with the Paris Climate Agreement.
Measure and report energy consumption and highlight improvements in energy efficiency across vehicles, facilities, equipment, processes, and products. Measure, report, and maximize transition to renewable energy.
Measure and monitor water use, discharge, and quality indicators and comply with laws, regulations, and best practices to protect water.
Take appropriate and adequate measures to minimize water consumption at facilities
Source high quality and cost-effective materials while continuously maximizing circularity by working for reuse, repair, remanufacture, recycle and recovery of materials.
Minimize the amount and weight of packaging materials used for delivering goods. Make every effort to use packaging materials that are recyclable, reusable, or biodegradable, and avoid materials that are harmful to the environment.
Use and report chemicals in compliance with applicable local, national, and international laws and regulations.
Reduce or eliminate the use of forever chemicals (including, without limitation, per- and polyfluoroalkyl substances) and other toxic and hazardous substances to the extent possible in parts and products, in accordance with applicable laws.
Identify and classify both nontoxic and toxic waste while storing, handling, transporting, and disposing, according to local, national, and international standards and regulations.
Refrain from any illegal dumping and any other illegal practices which are harmful to the environment.
Measure, monitor continuously improve environmental compliance activity and associated environmental aspects and impacts including, but not limited to, air and greenhouse gas emissions, land and biodiversity impacts, water utilization, energy consumption, chemicals and materials composition inventory, waste generation, and circularity activity.
PACCAR's manufacturing locations are ISO 14001 certified providing assurance to management, employees, and shareholders that the environmental impact is being measured and managed. ISO 14001 certified management system measures, monitors and maintains compliance at each manufacturing site including:
Air emissions - sites are monitoring and reporting local and federal jurisdiction air
standards and maintaining compliance.
Water consumption & discharge - monitoring and reporting local and federal jurisdictions water use and maintaining water standards.
Energy usage - sites measure and monitory energy usage (electricity, natural gas, etc.) including access to renewable power options.
Materials & waste - sites annually target achieving zero waste-to-landfill.
The table below contains environmental metrics monitored on an annual basis by PACCAR across the manufacturing sites.
Manufacturing Sites (%)
2025
2024
2023
ISO 14001 Management Certified
100%
100%
100%
Meeting Air Emissions Standard
100%
100%
100%
Meeting Water Conservation Standard
100%
100%
100%
Zero Waste-to-Landfill
>80%
85%
87%
Energy use is measured and monitored across PACCAR manufacturing and non-manufacturing sites. The chart below contains the total energy usage across PACCAR locations.
Energy (MWh)
2024
2023
2022
Manufacturing & Non-Manufacturing Locations
927,460
953,385
975,978
From 2013 to 2024, PACCAR reduced its energy usage by 46% on a per revenue basis as shown below.
In 2025, PACCAR achieved an A score from CDP on the Company's Task Force for Climate Related Financial Disclosures (TCFD) aligned climate transition plan, placing it in the leadership tier of over 22,000 companies reporting and demonstrating a robust approach to reducing greenhouse gas emissions in Kenworth, Peterbilt and DAF vehicles and from our global facilities. PACCAR has earned an "A" or "A-" rating for eleven consecutive years.
The Company's IFRS S2 (TCFD) CDP Climate & Energy Transition Plan provides details including governance, strategy, risk management and metrics & targets consistent with the TCFD framework as outlined below:
Board Level Oversight
Board Expertise on Climate Change
Senior Management Accountability & Feedback Mechanisms
Executive Remuneration Linked to Climate & Energy KPI's
WB2D & 1.5°C Aligned Transition Plan in Business Strategy & Shareholder Feedback
Link Between Climate Related Risks, Opportunities & Strategy
Details of Scenario Analysis
Financial Planning Details Associated with Climate Transition
Low Carbon Product & Services
Low Carbon Initiatives - Direct Operations
Value Chain Engagement - Suppliers, Dealers, and Customers
Alignment of Public Policy Engagement with Climate Strategy
Process for Identifying and Managing Climate Related Risks and Opportunities
Climate Related Risks, Potential Financial Impact, and Response Strategy
Climate Related Opportunities, Potential Financial Impact, and Response Strategy
Approved Science-Based Targets
Other Climate & Renewable Energy Related Targets
Net Zero Target, In Line with Latest Climate Science & Available Renewable Energy
GHG Protocol Annual Scope 1, 2, 3 GHG Inventory (3rd Party Verified)
PACCAR's complete CDP report is publicly available on the CDP website and TCFD-CDP Report at Investors.PACCAR.com
Scope 1 and 2 emissions at PACCAR locations include both purchased electricity, stationary and
mobile sources of greenhouse gas emissions while performing business activities. Scope 3 emissions are upstream and downstream in PACCAR's value chain as the Scope 1 and 2 emissions of suppliers, customers, partners etc. PACCAR regularly evaluates and updates its current and historical Scope 1, 2, and 3 emissions based on emerging science, feedback from stakeholders and market needs for greater environmental transparency. The chart below is scope 1, 2, and consolidated Scope 3 greenhouse gas emissions. For more information, visit PACCAR's full annual IFRS-TCFD-CDP Climate Report.
Tonnes C02e (000's)
2024
2023
2022
Scope 1 & 2 (location based)
227
245
271
Scope 3
112,236
122,676
114,542
PACCAR monitors both absolute greenhouse gas emissions and greenhouse gas emissions inventory per unit of revenue, which normalizes the data for fluctuations in our business that occur due to industry cyclicality. From 2013 to 2024, PACCAR reduced scope 1 and 2 greenhouse gas emissions by 59% on a per revenue basis as shown below.
In 2021, PACCAR established greenhouse emissions reduction targets approved by the Science Based Targets Initiative (SBTi). SBTi works with over 7,480 companies worldwide to create a clearly defined path to reduce greenhouse gas emissions, with the goal of helping limit global warming to well below 2 degrees Celsius compared to pre-industrial levels. PACCAR's targets are publicly disclosed at https://sciencebasedtargets.org/.
The Scope 1 and 2 science based target (SBT) is a 35% absolute reduction of CO2 emissions from PACCAR's global facilities between a baseline year of 2018 and a target year of 2030 and is based on SBTi's other industry sectoral decarbonization approach (SDA) using the absolute contraction method for well below 2°C.
SBT Progress 2018
Baseline
2022
2023
2024
2030
Target
Scope 1 & 2 293
271
245
227
190
Scope 3, Category 11 1006
1059
1066
1073
754
Scope 3 SBT is a 25% reduction in product use greenhouse gas emissions in grams of CO2e emissions per vehicle kilometer, well to wheel, from the heavy-duty vehicles PACCAR sells in the US, Canada and Europe, and the medium duty vehicles PACCAR sells in the US and Canada between a baseline year of 2018 and a target year of 2030. This SBT is a medium-term target for product use emissions based on the SDA Transport Tool for well below two degrees Celsius.
tonnes CO2e (000's)
(g CO2e/vkm WTW)
In 2022, the Science Based Target Initiative (SBTi) paused target validations & updates recognizing there is currently not a viable SDA for transport sector allowing companies like PACCAR to align their use-phase emissions targets of new road medium and heavy duty vehicles with 1.5°C
pathways. PACCAR's well-below 2°C trajectory approved science based targets are granted extensions until an SDA is developed and approved a viable SDA for heavy & medium duty trucks.
For operational scope 1 and 2 emissions at PACCAR locations, the three main levers for decoupling greenhouse gas emissions from energy consumption are ISO 14001 aligned demand side energy efficiency projects, purchasing renewable power from local utilities, and electrifying equipment.
Product use phase, scope 3 category 11, emissions reductions are through continued technology investment and manufacturing of efficient diesel engines while transitioning, with customer demand, towards manufacturing zero emission battery electric and hydrogen fueled vehicles.
Peterbilt, Kenworth and DAF lead the industry with thirteen battery electric vehicle models. DAF XF and XD Electric won International Truck of the Year in 2026. The trucks have a range of 200 to 500 kilometers due to the highly efficient drivelines, battery management system, which distributes the energy stored in the battery for maximum efficiency.
A key element of PACCAR's environmental strategy is to offer our customers commercial vehicles that reduce environmental impacts. PACCAR invests in technologies that reduce greenhouse gas emissions such as fuel-efficient diesel engines, natural gas and biofuel engines, and next-generation battery- electric, hybrid, hydrogen combustion, and hydrogen fuel cell powertrains. To develop and manufacture leading products and technologies in the industry, the Company makes significant investments in &D expenditure and R&D each year.
($ in millions)
2025
2024
2023
Capital Investment
$728.5
$795.8
$698.3
R&D
$445.5
$452.9
$410.9
PACCAR's commitments to making the highest quality, most sustainable vehicles begin with continuous and intensive engagement with customers for ongoing feedback on vehicle performance and new specifications for future product designs. Our engineers use life cycle assessment (LCA) modeling as well as "Design for Environment" or Eco Design software as part of PACCAR's Product Creation Process (PCP). This includes identifying non-hazardous, lighter weight materials while improving overall vehicle recyclability rates to over 90% and material recoverability greater than 95%. In addition, scientists, engineers, and economists utilize evaluation tools for life-cycle assessment (LCA) modeling to incorporate effects on health, ecosystems, and resource consumption into design considerations.
PACCAR is a leader in the development of battery-electric vehicles. Kenworth, Peterbilt and DAF have eight zero emissions models in production. PACCAR has a 30% ownership in the new U.S.-based joint venture, Amplify Cell Technologies, that began construction of a manufacturing plant in Mississippi to produce high performing lithium-iron-phosphate (LFP) battery cells designed specifically for electric trucks. PACCAR is a leader in developing hydrogen energy solutions, including the development of hydrogen combustion and fuel cell vehicles. Overall, PACCAR is prepared to meet customer demand for zero emission vehicles and continue fulfilling its contribution to the net zero carbon economy by continuing investment in research, testing, and capabilities for manufacturing and aftermarket support of commercial medium and heavy duty zero emission trucks.
PACCAR's consistent long-term profits, strong balance sheet, and intense focus on quality, technology and innovation have enabled the company to invest $9.2 billion in the past decade into:
Innovative technologies such as hydrogen internal combustion engine and hydrogen fuel cell powertrains.
Efficient manufacturing and distribution facilities to support the manufacturing and servicing of zero-emission vehicles.
Advanced new vehicles, including thirteen zero-emission vehicles currently in production.
A U.S. battery manufacturing joint venture, Amplify Cell Technologies
PACCAR invested $729 million in capital projects and $446 million in research and development expenses in 2025. In 2026, capital expenditures are projected to be in the range of $725-$775 million and research and development expenses are estimated to be in the range $450-$500 million. In addition to capital and R&D investments, the Company expects to continue investing in its joint battery venture, Amplify Cell Technologies.
Requests for a net zero pledge, commitment, or target are reviewed annually. Renewable energy is required to fuel or charge zero-emission commercial trucks. When renewable energy is not available, companies do not purchase zero-emission trucks. Recent IEA, Bloomberg NEF, and IPCC reports are consistent that investment must triple by around 2030 to $4T a year to supply the
renewable energy to achieve net zero by 2050. A credible net zero commitment requires investment and infrastructure to supply renewable energy and create demand for vehicles.
Currently, even with zero emission truck technology, a fact-based long term scenario analysis for zero emissions by 2050 does not exist for medium and heavy duty trucks due to under-investment and lack of physical infrastructure necessary for supplying reliable renewable energy. There is encouraging activity in policy commitments and investments by major economies for the energy sector's physical infrastructure for generating renewable energy supply, as well as fueling networks for battery electric and zero emission vehicles.
PACCAR has communicated a progression through 2035 towards lower emissions when considering a combination of state and federal air quality standards, carbon regulations and zero emission vehicle sales and fleet mandates. From 2023 to 2035, a portfolio adoption mix may appear as below.
More information on PACCAR's pathway to zero emissions may be found at Investors.PACCAR.com in the Annual Reports, SEC filings & Investor Presentations.
PACCAR, Cummins, Daimler Trucks and EVE Energy have partnered to produce state-of-the art commercial vehicle batteries in a 21-gigawatt hour (GWh) factory in Marshall County, Mississippi. The factory is expected to start production in the next few years.
PACCAR's research and development efforts include demonstration and development projects for Kenworth, Peterbilt and DAF vehicles, including battery-electric, hydrogen fuel cell, hydrogen combustion and hybrid technologies.
PACCAR currently produces battery-electric Kenworth, Peterbilt and DAF trucks with thirteen different zero emissions trucks in the heavy and medium duty markets. Our zero-emissions vehicle portfolio covers applications ranging from refuse and drayage to regional haul and local pick-up and delivery. So far, PACCAR has received hundreds of orders. Production is underway and we are now delivering these products to customers around the world.
(# Models)
2025
2024
2023
Battery Electric Vehicle
13
8
9
Peterbilt has developed a battery electric Peterbilt 579EV for port and regional haul applications. Peterbilt has designed a battery electric Peterbilt 520EV truck for the refuse segment. The truck's range and quiet operation is an excellent solution for residential neighborhood refuse operations.
The zero-emissions Peterbilt 220EV and Kenworth K270E cabover trucks have a range of up to 200 miles. These trucks are designed for use in a variety of applications including local pickup and delivery and short regional haul operations.
DAF has developed battery electric DAF CF and DAF LF trucks, which offer zero emissions and ultra-low noise for heavy- and medium-duty urban distribution and refuse applications. DAF CF
Electric was named Green Truck Logistics Solution 2019, a prestigious award for the deployment of emerging technologies in Europe. The DAF LF Electric is a medium-duty truck with a modular battery pack that can be scaled to the range required by customers.
The DAF CF Hybrid has been developed for driving with zero emissions in urban areas, while offering a much longer range to operate beyond those urban areas, thanks to the efficient PACCAR MX-11 engine. The combination of electric and diesel power ensures the highest logistical efficiency.
All truck sales and diesel engine unit sales are certified to use biofuels. PACCAR's MX-13 and MX-11 engines are certified to use B10/B20/B30 and XTL biofuels in Europe and B20 biofuel in the U.S. Engines used in PACCAR trucks not manufactured by the Company are certified to use up to B20 biofuels.
(% global truck deliveries)
2025
2024
2023
Engines certified for biofuels use
100%
100%
100%
PACCAR is a market leader for natural gas heavy-duty vehicles. Based on the latest information from the research firms R.L. Polk and ACT Research, Kenworth and Peterbilt achieved market share of over 48.9% of compressed natural gas heavy-duty vehicle registrations in the U.S. and Canada in 2024.
(%, US and Canada market share)
2025
2024
2023
CNG heavy-duty vehicles
33.5%
48.9%
56.3%
PACCAR participated in the Department of Energy's SuperTruck 3 program, with the goal of electrifying medium- and heavy-duty trucks, expanding electric vehicle infrastructure and lowering emissions for on- and off-road vehicles.
DAF is the only truck manufacturer to introduce a new generation of trucks fully utilizing the new European regulations for truck masses and dimensions, resulting in a range of highly attractive and aerodynamic trucks which feature industry-leading fuel efficiency, safety and a luxurious cab for driver comfort. DAF XF, XG and XG+ models were honored as International Truck of the Year 2022. These trucks are equipped with highly efficient PACCAR MX engines, a new compact after-treatment system, and sophisticated software and aerodynamic optimization, reducing fuel consumption and CO2 emissions by up to 10% compared with previous models.
The new DAF XD truck earned the International Truck of the Year 2023 award. The new DAF XD truck represents a new generation of distribution and vocational vehicles. The versatile DAF XD is available as a tractor or rigid truck with a high-performance PACCAR engine. DAF also introduced the DAF XDC truck, which is designed specifically for construction and vocational segments and features two-, three- or four-axle configurations with single or double drive axles
Peterbilt and Kenworth recently introduced major enhancements to the Peterbilt 579 and the Kenworth T680 trucks, which reduce fuel consumption and CO2 emissions by up to 7% over previous models. Enhancements included a new aerodynamic design, the PACCAR Powertrain, a quieter cab, customizable 15" digital display, connectivity technology, and new ADAS safety features.
PACCAR continued its SuperTruck 3 program to develop and deploy next generation Class 8 Kenworth and Peterbilt battery-electric vehicles, along with its vehicle charging infrastructure. SuperTruck 3 is a U.S. Department of Energy (DOE) initiative to develop state-of-the-art zero emissions medium- and heavy-duty trucks. The SuperTruck initiative was launched in 2009 by the DOE to improve heavy-duty truck freight efficiency. Kenworth and Peterbilt successfully developed state-of-the-art vehicles in the prior SuperTruck and SuperTruck 2 programs. Many of the technologies developed in the earlier SuperTruck programs were deployed in production vehicles, benefiting the environment and PACCAR's customers.
Remanufacturing is the industrial process of returning a previously used component to "like-new" condition. Remanufacturing helps the environment by reducing waste. PACCAR's aftermarket parts division sells remanufactured engines and many other remanufactured components. PACCAR is investing in additional global engine manufacturing capacity, and completed construction of a new engine remanufacturing facility in Columbus, Mississippi. The Company also has engine remanufacturing capacity on its Eindhoven Campus in the Netherlands.
PACCAR's newly formed Global Electronics organization and Connected Solutions team support the expansion of PACCAR Connect, a platform that creates software and applications to benefit customers and provide incremental revenue and profit for PACCAR. This configurable system consists of proprietary hardware and software that deliver robust data security, over-the-air software update capability and advanced fleet management tools. In 2025, PACCAR Connect was installed in over 475,000 PACCAR vehicles.
PACCAR Connect fleet management system gives fleet customers real-time information on vehicle and driver performance including fuel consumption, fleet utilization, idle time and route optimization. This information enables customers to improve fleet operating efficiency and reduce fuel consumption and GHG emissions.
PACCAR Connect is a configurable system consisting of proprietary hardware and software that provides robust data security, over the air software updates and advanced fleet management tools, while enabling customers to cost effectively integrate their existing fleet management systems and applications. PACCAR began installing PACCAR Connect on DAF XF, XG and XG+ trucks in October 2021. The information provided by this system enables customers to improve fleet operating efficiency and reduce fuel consumption and CO2 emissions.
PACCAR announced a new collaboration to integrate Platform Science's Virtual Vehicle technology in Kenworth and Peterbilt trucks using the PACCAR Connect telematics system. The integrated PACCAR Connect and Virtual Vehicle solution will offer customers a state-of-the-art telematics operating system and application store, enabling customers to access software solutions, real-time vehicle data, and third-party applications. The new PACCAR system will reduce the requirement of multiple telecommunications devices and will enhance customers' productivity. PACCAR will continue collaborating with the Platform Science team to create the industry's most user-friendly, customizable and productive connected truck solution.
PACCAR has introduced technologies that train drivers to operate vehicles more efficiently. Kenworth and Peterbilt's Driver Performance Assistant offers interactive in-dash coaching to drivers to reduce fuel consumption and CO2 emissions. DAF's EcoDrive Training enhances driver efficiency, resulting in up to 5% reduced fuel consumption and CO2 emissions from properly trained drivers.
Social Responsibility and Ethical Business Conduct
The way PACCAR conducts its business, and the opinion of our shareholders, employees, customers and the public, are very important to the continued success of PACCAR. PACCAR has a long history of achieving high standards of performance related to human rights and compliance with laws and regulations in countries where the Company does business. 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 (Current version of the Global Code of Conduct is available at paccar.com/about-us/board-of-directors/code-of-conduct.). 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.
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. Continuous PACCAR employee development and training include mandatory annual training
focusing on aspects of the Code of Business including the topics:
Harassment Free Workspace
Dedication to Diversity & Inclusion
Appropriate Workplace Behavior
Anti-violence
Expect Employees, Dealers, Partners, Suppliers to Uphold Human Rights
Everyone Should be Treated with Dignity, Fairness, and Respect
No Tolerance for Slave or Child Labor, Human Trafficking, Unsafe Working Conditions
Commitment to Compliance with Human Rights Laws
Environmental Responsibility is One of PACCAR's Core Principles
Maintain the Highest Standards and to Put Safety First - Without Exception
PACCAR Drives for Excellence, Safety, and Integrity in Everything it Does
Antitrust and Fair Competition
Anti-Bribery and Corruption
Anti-Money Laundering
Business Hospitality - Gifts, Entertainment and Travel
Conflicts of Interest
Charitable and Political Contributions
Accurate Financial Results
Disclosure Requirements
Use of Company Assets
Retaining Proper Business Records
Customer Interaction and Information
Dealers, Suppliers, and Other Partners
Government Business and Contracting
Import and Export
Trade Sanctions and Embargos
Economic Boycotts
Confidential Information
Protecting Company Assets
Audits and Investigations
Intellectual Property
Cybersecurity and Electronic Communications
Inside Information
Privacy
Interactions with the Media, Investors, and the Public
Use of social media
Reporting Concerns
EthicsLine Reporting System
EthicsLine 1.800.300.1826
EthicsLine.PACCAR.com
Review PACCAR's complete 32-pages Global Code of Business Conduct at: https://www.paccar.com/media/quhf422t/code-of-conduct-2021-final.pdf
PACCAR's employee training and development programs are extensive and comprehensive. New employees receive 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.
Training on PACCAR's Global Code of Conduct topics as well as employee development occurs in multiple setting annually and throughout the career of employees from regular on-line interactive instructional and refresher courses to development opportunities like PACCAR Institute for Management Leadership (PIML), Executive Leadership Program, Leadership Development Rotational Program, and Situational Leadership Program.
(# employees)
2025
2024
2023
Global employees as of Dec. 31
25,900
30,100
32,400
Employee development drives continuous improvement at PACCAR. Six Sigma, data analytics, machine learning, Industry 4.0 and lean process development are integrated into business activities at PACCAR as well as at many of its suppliers, dealers and customers. These tools help to
continuously enhance the creation of state-of-the-art new product designs, customer services and manufacturing processes. Thousands of PACCAR employees have been trained in the use of these tools and have delivered billions of dollars in savings in all areas of the company.
The continuing focus on workplace safety keeps our employees and contractors safe and our facilities profitable. Safety is a key priority during employee orientation at 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 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 Company locations. Additional investments in safety include implementing PACCAR Safety College training to enhance safety leadership, a project to create enhanced safety standards and training for working on battery electric vehicles and deploying safety software across the company to support tracking and reporting safety data.
See the chart below for safety metrics for PACCAR employees and contractors:
(Recordables per 200,000 hrs. worked)
2025
2024
2023
OSHA Injury / Illness employees & contractors
1.36
1.6
2.1
US Heavy Duty Truck Manufacturing Industry Average
Pending
4.1
4.5
PACCAR's consistent focus on workplace safety has resulted in a recordable injury/illness rate more than 50% lower than the U.S. industry average as seen in the table above. In the last decade, one workplace fatality occurred in 2023.
PACCAR provides robust benefits packages that support physical, emotional and financial wellbeing. Employee satisfaction and engagement are measured through periodic surveys that result in quantitative metrics leading to workplace enhancements. PACCAR is committed to hiring, developing and promoting the most talented people and ensuring that our employees represent the diversity present in the global community. PACCAR is proud to have been honored for the past several years as a Top Company for Women to Work for in Transportation by the Women in Trucking Association.
PACCAR is an equal opportunity employer and provides a workplace free from discrimination and harassment. PACCAR recruits and develops a diverse workforce and supports their careers with
resources such as the PACCAR Women's Association, Diversity Councils, and training designed to develop leadership opportunities. 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. More information about PACCAR's commitment to diversity and inclusion can be found at: https://www.paccar.com/media/quhf422t/code-of-conduct-2021-final.pdf
The Company maintains a robust and comprehensive cybersecurity management and governance program. Our information security management system is based upon the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF). As part of its cybersecurity program, the Company engages internal and external auditors and other third parties to assess the program. The Company conducts penetration and compromise assessment tests, implements detection and prevention tools, monitors cyber events and has active disaster recovery plans. For third-party IT services, the Company conducts architectural, privacy and security analysis of their solutions. If gaps are identified, the third-party remediates or mitigates the risk. The Company simulates potential cyber-attacks and performs incident responses to test preparedness. These exercises are used to train and update the Company's Incident Response plan.
The Company conducts annual information security training for executive management and non-executive employees. PACCAR conducts ongoing phishing tests that result in more frequent, additional cybersecurity training for employees as appropriate.
The Company's Security Risk Council, including the Chief Information Security Officer, meets regularly to discuss risks, plans and updates to the security program, and to receive advanced training such as breach simulation exercises. It briefs the Board of Directors and/or the Audit Committee of the Board of Directors on technology and information security matters at least annually. Members of PACCAR's Board of Directors with technology/cybersecurity experience and skills include:
R. Preston Feight
Brice A. Hill
Barbara B. Hulit
Ganesh Ramaswamy
Management and the Board of Directors receive periodic updates on the status of cybersecurity investments. If a security incident were to occur, the Company's Security Risk Council and Management would evaluate its significance and brief the Board of Directors.
The Company has not experienced a material security breach, and as a result, has not incurred any net expenses, penalties and settlements from such breaches, in the last five years. Certain independent dealers and suppliers have reported they have experienced information security breaches in the last year, which have not had any material impact on the Company.
Disclaimer
Paccar Inc. published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 18:26 UTC.