PACCAR Inc.
PCAR.US | Manufacture of motor vehicles
PACCAR Inc is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced diesel engines, provides financial services and information t...Show More
Better Health for All
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PACCAR's core products (trucks) inherently have negative health impacts due to emissions, but the company is making significant efforts to mitigate these. Modern Euro 6 diesel engines emit 95% less nitrogen oxide and 97% less soot particles than 25-30 year old trucks.
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The company has 8 zero-emission models in production
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and all truck sales and diesel engine unit sales were certified to use biofuels in 2024.
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PACCAR invested $453 million in R&D and $796 million in capital projects in 2024, with a focus on zero-emission powertrains and advanced driver assistance systems.
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The company's global OSHA recordable rate for employees and contractors was 2.1 in 2023, and 1.9 in 2022,
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which is lower than the US heavy-duty truck manufacturing industry average of 4.5 in 2023 and 3.9 in 2022.
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There was one workplace fatality in 2023.
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PACCAR's DAF vehicle range features state-of-the-art driver assistance technologies, including Autonomous Emergency Braking, Adaptive Cruise Control, DAF Drowsiness Detection, and systems to detect Vulnerable Road Users.
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PACCAR discloses risks in SEC filings and evaluates climate-related risks, but its climate policy engagement disclosure is partial and incomplete.
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The company has engaged negatively with climate-related regulations, opposing the Advanced Clean Trucks rule in Maryland and Colorado in 2022,
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and a 100% zero-emission CO2 target in the EU in 2022.
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PACCAR settled with CARB for $2,539,200 over emissions violations in July 2023.
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PACCAR provides comprehensive mental health support for its employees, including programs to reduce stress and workload, training sessions, and support from social workers, psychologists, and company doctors.
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The PACCAR Foundation has contributed over $250 million to educational, social services, and arts organizations since 1951,
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including supporting cancer research and mobile mammography clinics.
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PACCAR supports employees in making their lifestyle healthier by providing a lifestyle coach and programs to stop smoking and drinking.
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The company's cybersecurity program follows the NIST CSF, conducts annual training, and has had no material breaches in the last five years.
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PACCAR supports the American Red Cross during crises.
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Fair Money & Economic Opportunity
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PACCAR Inc operates a financial services arm, PACCAR Financial Services (PFS), which provides financing and leasing for trucks and trailers across 26 countries
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. However, the provided articles do not contain specific, quantifiable data points required to assess the company against the 'Fair Money & Economic Opportunity' value's KPIs. There is no information regarding the share of underserved clients in its loan portfolio, specific APRs or fee structures compared to market medians, revenue derived from high-cost products, or the share of its loan book dedicated to low-income, SME, or micro-segments. Similarly, data on customer financial data accessibility, the impact of financial literacy initiatives (beyond general educational support), customer debt burden ratios, or the geographic inclusion of financial service access points in underserved areas is not available. While the company reports no regulatory actions or fines related to general compliance, there is no specific evidence of proactive fair-lending audits or certifications. No information is available on customer wealth building outcomes or the simplicity of financial products. General philanthropic contributions are noted but do not directly align with the financial services-specific metrics of the value, such as profit reinvestment in community finance.
Fair Pay & Worker Respect
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Employee reviews estimate CEO compensation to be 72 to 200 times more than the median employee pay.
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Multiple employee reviews consistently describe the company as having a high or very high turnover rate, with some attributing it to extremely high expectations and fast burnout.
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Fair Trade & Ethical Sourcing
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PACCAR reports that 0.26% of its total volume of trade with tier 1 suppliers is connected to regions considered higher risk for modern slavery.
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The company detected zero incidents of forced or child labor in PACCAR of Canada's operations and supply chains for both the 2023 and 2024 reporting years, and PACCAR Australia reported no incidents for 2023.
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PACCAR prohibits the use of slave, forced, or child labor and implements prevention programs, including vetting all labor hire agencies and providing biennial Code of Conduct training to employees.
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Honest & Fair Business
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PACCAR incurred over $643 million in ethics-related regulatory penalties in the past three years.
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This includes a $600 million pre-tax charge in 2023 for European court judgments related to price-fixing,
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approximately $40.6 million owed from a February 2023 UK tribunal ruling for overcharge claims,
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and a $2.54 million settlement with the California Air Resources Board in 2023 for air quality regulation violations.
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PACCAR has a whistleblower policy with a 24/7 EthicsLine
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and states a non-retaliatory culture;
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however, the U.S. Department of Labor filed lawsuits in 2020 and 2021 alleging retaliatory termination of an employee who raised COVID-19 safety concerns,
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with OSHA finding the termination retaliatory.
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Seventy-five percent of PACCAR's twelve director nominees are independent.
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The company maintains a global zero-tolerance anti-corruption policy,
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prohibiting bribery and referencing international laws such as the FCPA, UK Bribery Act, and Brazilian Anti-Corruption law,
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with employees sometimes requested to certify their understanding of the Code of Conduct.
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Kind to Animals
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The provided articles do not contain specific, quantifiable evidence related to PACCAR Inc's performance on animal welfare, animal testing, ethical sourcing of animal products, or measurable wildlife conservation impact. While one article mentions employee participation in a forest restoration project to improve local wildlife habitats
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, it lacks specific metrics on biodiversity impact or species recovery required for scoring. Another article details a Supplier Code of Conduct
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, but its scope is limited to human labor practices and does not address animal welfare compliance. Therefore, no KPIs under the 'Kind to Animals' value can be scored.
No War, No Weapons
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PACCAR Inc's subsidiary, DAF Trucks N.V., was involved in 63 apparent violations of Iranian sanctions regulations between October 2013 and February 2015.
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DAF sold 63 trucks, valued at approximately $5.4 million, to customers in Europe, knowing or having reason to know they were ultimately intended for buyers in Iran.
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PACCAR Inc. voluntarily disclosed these violations to OFAC and agreed to pay a $1,709,325 settlement in 2019.
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Following this, DAF changed its business practice to require direct sales agreements with end users and prohibited resale transactions, also strengthening compliance programs and instituting in-person dealer training.
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PACCAR Inc. does not engage in direct military work, but has had indirect involvement through partnerships, such as a 2009 collaboration with Federal Defense Industries to support the U.S. Army.
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Planet-Friendly Business
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PACCAR has established science-based emission reduction targets approved by SBTi, committing to a 35% absolute reduction in Scope 1 and 2 CO₂ emissions from its global facilities by 2030
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, and a 25% reduction in Scope 3 emissions per vehicle kilometer by 2030
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. The company has consistently received 'A' or 'A-' ratings from the Carbon Disclosure Project (CDP) for eight consecutive years as of 2022
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. PACCAR invested over $846 million in capital projects and research and development in 2022
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, focusing on zero-emission trucks
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, and plans a $2-3 billion joint investment in a battery cell production facility
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. In July 2023, PACCAR settled with the California Air Resources Board for over $2.5 million due to OBD system violations in 16,928 engines from 2013-2021
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Respect for Cultures & Communities
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PACCAR Inc, through the PACCAR Foundation, has contributed over $200 million globally to support education, social services, and the arts, including grants to universities, hospitals, and health services
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. However, specific data regarding formal partnerships with indigenous or local community groups, investments in cultural preservation programs, or the adoption of Free, Prior, and Informed Consent (FPIC) and social impact assessments is not publicly available
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Safe & Smart Tech
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PACCAR has established a robust system and governance infrastructure for AI, collaborating with AI regulatory bodies to ensure ethical deployment.
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The company implements security measures to protect personal data from unauthorized disclosure or access
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, and has not experienced any notable security incidents with material impact.
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Users are provided with comprehensive rights to access, correct, delete, restrict processing, and port their data
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, and can opt out of promotional communications and cookies.
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PACCAR conducts yearly information security training for employees
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and ongoing phishing tests.
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The company states it only shares necessary personal information
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and retains data as long as necessary for its purposes, business records, or legal requirements.
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PACCAR complies with GDPR, CCPA, and PIPL
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, and its information security management system follows the NIST Cybersecurity Framework.
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Zero Waste & Sustainable Products
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PACCAR's vehicles are designed with over 80% recyclable components.
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The company integrates circular design principles by optimizing the entire product lifecycle, focusing on resource recovery, enhancing vehicle longevity, and ensuring materials are reused effectively.
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Over 80% of PACCAR's manufacturing locations have achieved zero-waste-to-landfill status.
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The company's operations are guided by ISO 14001 standards, with over 90% of manufacturing facilities certified, and it has maintained high CDP scores for sustainability for nine consecutive years.
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