Paccar : SASB-ESG Report (IFRS SASB ESG Combined Report April 2025rev4)

‌PACCAR IFRS-SASB-ESG Report 2025 SASB Standards Disclosure Table

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)	The latest models of Kenworth, Peterbilt, and DAF trucks have improved fuel efficiency by up to 7% compared to previous models (This document: p. 10-15). Kenworth and Peterbilt trucks will improve fuel efficiency by at least 19% by 2024, and 25% by 2027 when compared to 2017 levels. DAF trucks will improve fuel efficiency by at least 15% by 2025 and 30% by 2030 when compared to 2020 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-road medium- and heavy duty engines, and other non road diesel engines	PACCAR products are low NOx and compliant with all NOx emissions regulations in all its 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: pgs. 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 185,300 new trucks in 2024
	Number of employees	30,100 as of December 2024

‌Forward Looking / Cautionary Statements

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.

‌Report Boundaries

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.

‌Compliance and Risk Management

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.

‌Sustainability Strategy

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