Paccar Inc. · NASDAQ:PCAR
Paccar — ESG Presentation (February 2023)
32 slides from Paccar's sustainability presentation, February 2023
Slide 1: ESG Presentation
ESG Presentation
Slide 2: Forward Looking / Cautionary Statements
Forward Looking / Cautionary Statements This presentation 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 uncer
Slide 3: Sustainability At a Glance
Sustainability At a Glance $505M $341M 9 2022 Capital 2022 R&D # of Kenworth, Financial Services Investments Peterbilt and DAF zero emissions truck models in production 5% $7.3B 2014 35% / 25% Parts 20% Invested over the last The year we started Science Based 2022 Revenue decade in: reporting emissi
Slide 4: Driven by Quality, Technology and Innovation
Driven by Quality, Technology and Innovation Long history 84 years Dividends paid Proven commitment of positive returns of consecutive every year to environmental leadership, social for shareholders profitability since 1941 responsibility and philanthropy 4
Slide 5: Strategy and Leadership for the Future
Strategy and Leadership for the Future PACCAR has always believed that environmental responsibility is essential to the company’s success. Additionally, we’re attuned to various external trends driving development and adoption of new technologies in the transportation industry. Increased Investor Cu
Slide 6: Our Approach to ESG
Our Approach to ESG Our Values We’re investing in sustainability for the long-haul. The key values of quality, innovation, integrity and operational excellence are central to our business strategy; our ESG efforts support those Our values in a way that is authentic to PACCAR and Mission Be a global
Slide 7: Our Sustainability Journey
Our Sustainability Journey 2020 Kenworth and ESG Related Highlights Over Time Peterbilt Zero Emissions Trucks 2018 Peterbilt and Kenworth recognized as top workplaces for women by Summit 14,115-Foot Women in Trucking, an organization that promotes the employment 2009 PACCAR Pikes Peak and success of
Slide 8: Our Sustainability Journey
DAF produces first aerodynamic heavy- Our Sustainability Journey Kenworth was honored with duty truck in Europe, the Clean Energy improves fuel Partnered with Entrepreneur Award, by efficiency by up to ESG Related Highlights 2021+ Aurora, to develop 10% compared to prior Clean & Prosperous and comme
Slide 9: Sustainability Matters in Trucks and Transportation
Sustainability Matters in Trucks and Transportation The transportation industry is changing — now more than ever before — and we’re at the forefront 36.9 million commercial Our economy relies on trucking now and in the Trucks move over 72% of all freight vehicles, including 3.9 million foreseeable f
Slide 10: Proactively Creating Innovative Solutions to Meet Customer Needs
Proactively Creating Innovative Solutions to Meet Customer Needs We anticipate our customers’ sustainability related challenges Environmental Our customers are demanding cutting edge emissions reduction technology; we have been investing and innovating in sustainable technology for many decades Soci
Slide 11: Commitment to Leading with the World’s Cleanest Engine Technology
Commitment to Leading with the World’s Cleanest Engine Technology Over time, we’ve increased the efficiency of our MX-11 and MX-13 engines and incorporated environmentally friendly technology. We work tirelessly to make diesel engine technology as clean as possible. The near-zero emissions hydrogen
Slide 12: Multi-Faceted Approach to Innovation
Multi-Faceted Approach to Innovation We’re investing in a diverse array of new technologies through in-house innovation as well as strategic partnerships Manufacturing & Autonomous Our financial strength Zero Emissions Connectivity enabled us to invest over Distribution Driving $846M in capital proj
Slide 13: We’re at the Center of Innovation
We’re at the Center of Innovation Our Innovation Center attracts the brightest talent and sits right in the heart of Silicon Valley To complement our research and development efforts we’ve established strong relationships with Silicon Valley’s best tech companies as part of developing purposeful inn
Slide 14: PACCAR is Leading the Charge
PACCAR is Leading the Charge Early adopter of zero emissions technology Zero emissions vehicles are the next generation of transportation technology. That’s why we’re heavily invested in building strategic partnerships with several companies paving the way in electric vehicle technology: We have a 3
Slide 15: PACCAR is Leading the Charge Continued
PACCAR is Leading the Charge Continued We began production of battery electric trucks in the second Zero emissions is a reality at PACCAR quarter of 2021 and continue fulfilling customer orders for several hundred battery electric vehicles. Our customers are using Kenworth, Peterbilt and DAF zero em
Slide 16: Autonomous Driving
Autonomous Driving We’re investing significantly in autonomous technology with our partners In January 2021, we announced an exciting partnership with Aurora, a leader in autonomous PACCAR is the provider vehicle technology. of choice for autonomous In September 2021 we partnered with FedEx driving
Slide 17: PACCAR Connect
PACCAR Connect New state-of-the-art global connected truck platform The PACCAR Connect system provides reliable data security, over the air software updates, and advanced fleet management tools that each customer can chose from a catalog of available third-party applications. Customers are able to c
Slide 18: Continuous Improvement on Environmental Efforts
Continuous Improvement on Environmental Efforts We’re proud of the progress we’ve made to date… 100% of our manufacturing locations are ISO 14001 certified and more than 80% are zero-waste- to-landfill. We continue making meaningful progress over time. PACCAR’s Greenhouse Gas Emissions PACCAR’s Ener
Slide 19: Reporting Standards, Goal-Setting and Science Based Targets
Reporting Standards, Goal-Setting and Science Based Targets …and the goals we set for the future PACCAR’s Total Greenhouse Gas Emissions 350,000 Annual GHG Emissions 300,000 250,000 (tonnes) Reduce absolute Scope 1 (internal 200,000 Science Based Target of operations) and Scope 2 (purchased 35% ener
Slide 20: Historical Commitment to Environmental Disclosure
Historical Commitment to Environmental Disclosure Among top companies receiving highest rating from CDP Since 2014, we have We have In 2022, we been reporting received received an emissions data to CDP, A or A- formerly the Carbon rating in A Disclosure Project 8 consecutive years rating Of the 18,0
Slide 21: Caring for Our Employees – Health & Safety
Caring for Our Employees – Health & Safety The health and safety of our employees and contractors is a critical priority, particularly for those who work in our manufacturing facilities We have a Global Safety team OSHA Recordable Injury/Illness Rate that is led by our Global Safety Injuries Per 200
Slide 22: Caring for Our Employees – Benefits
Caring for Our Employees – Benefits In addition to providing our employees and their families comprehensive health and welfare benefits, we are pleased to offer the following non-traditional benefits: Less than 12% of Fortune 500 employers offer an open defined benefit pension plan Tuition Reimburse
Slide 23: Attracting and Retaining the Best Talent
Attracting and Retaining the Best Talent As an industry leader, it is imperative that we maintain an environment that attracts and retains world class talent We regularly conduct an employee survey to measure job satisfaction, obtain supervisor/managerial feedback, and to understand the perception o
Slide 24: Caring for Our Employees – Training & Development
Caring for Our Employees – Training & Development We’re investing in development opportunities that enhance the careers of our valued employees PACCAR leadership development programs are cultivating the next generation of leaders PACCAR Institute Executive Leadership Leadership Development Situation
Slide 25: PACCAR is a Top Company for Women to Work in Transportation
PACCAR is a Top Company for Women to Work in Transportation We are proud to receive regular recognition from the Women in Trucking Association (WIT) for our success in attracting and retaining the best talent Lily Ley, PACCAR’s VP & Chief “Women in Trucking is an organization with diversity-focused
Slide 26: The PACCAR Foundation
The PACCAR Foundation The Foundation has made over $220M in grants since its founding in 1951 Foundation Vision: To enhance, enrich and positively impact the communities in which our employees live and work. Foundation Values: We are committed to philanthropic efforts that support the areas of Educa
Slide 27: PACCAR Foundation Supports Diversity and Inclusion
PACCAR Foundation Supports Diversity and Inclusion Select grants to organizations the support Diversity and Inclusion A major priority of the United Way is Provides scholarships to economically supporting Social Justice disadvantaged individuals Supports career opportunities for Provides opportuniti
Slide 28: PACCAR Foundation Major Donations
PACCAR Foundation Major Donations Education Health & Social Services Arts & Culture PACCAR Technology Institute – UNT Seattle Children’s Hospital - Bellevue National Library of France PACCAR Hall – University of Washington Northwest Harvest Market - Seattle Special Olympics – Seattle PACCAR Environm
Slide 29: Governance
Governance Board Skills We value diversity of thought around We are committed to ESG oversight at the board level the boardroom table. Our board members have a diverse array of professional experiences including: The Charter for the Nominating and Governance Committee includes oversight of ESG matte
Slide 30: Cybersecurity
Cybersecurity Vigilance, Incident Management, Internet Firewall, Patching & Fishing, E-mail Protection Performance Benchmarking (2023) SecurityScorecard BitSight Comprehensive Cybersecurity Program Company Score Score • Audits PACCAR 90 690 • Vulnerability Assessment AB Volvo 74 550 • Security Risk
Slide 31: Industry Recognition
Industry Recognition Select awards from industry groups and ESG standard setters Kenworth and Peterbilt Multiple PACCAR divisions DAF CF & XF Model Ranges received six Manufacturing were each recognized as earned the International Leadership top places for women by Good Design Awards 2020 Awards fro
Slide 32: “We have been committed to innovation and sustainability for many years”
“We have been committed to innovation and sustainability for many years and will continue to embed ESG into our business decisions.” PRESTON FEIGHT, CEO 32