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

PACCAR IFRS-SASB-ESG Report 2025 SASB Standards Disclosure Table Industrial Machinery & Goods Sustainability Accounting Standard Version 2023-12 Topic Energy Management See TCFD-CDP Report: 7.30.1 Employee Health & Safety Fuel Economy & Emissions in Use Phase Metric Total energy consumed Percent grid electricity Percent renewables Total recordable incident rate Fatality rate Near miss frequency rate Sales weighted fleet fuel efficiency for medium and heavy duty vehicles (Gallons/1,000 ton- miles) Sales-weighted fuel efficiency for non road equipment (Gallons/hour) Sales weighted fuel efficiency for stationary generators (Watts/gallon) Sales weighted emissions of NOx for Marine diesel engines, locomotive diesel engines, on- road medium- and heavy duty engines, and other non road 1 Disclosure 953,385 MWh 45.2% 12% This document: p. 18 This document: p. 18 Consistent with Total Recordable Incident rate. 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. Not applicable to PACCAR's business. Not applicable to PACCAR's business. PACCAR products are low NOx and compliant with all NOx emissions regulations in all its markets. Materials Sourcing Remanufacture Design Services Activity Metrics diesel engines 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 Description of the management of risks associated with the use of critical materials Revenue from remanufactured products and remanufacturing services Number of units produced by product category Number of employees PACCAR products are low PM and compliant with all PM emissions regulations in all its markets. This document: p. 8, 23-29 PACCAR's aftermarket parts division sells remanufactured engines and many other remanufactured components. PACCAR delivered 185,300 new trucks in 2024 30,100 as of December 2024 The sustainability disclosures in this report and at Investors.PACCAR.com are consistent with the IFRS SASB Industrial Machinery & Goods Sustainability Accounting Standard v2023-12. 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. 2 Contents PACCAR IFRS-SASB-ESG Report 1 SASB Standards Disclosure Table 1 Forward Looking / Cautionary Statements 2 PACCAR Environmental, Social and Governance (ESG) Report 5 Environmental Leadership 5 Environmental Policy 5 Operations 6 Environmental Management System 6 IS0 14001, Air Emissions, Water Conservation, Zero Waste to Landfill 7 Energy Management & Efficiency 7 Climate Strategy 8 Climate Transition Plan 8 Governance 8 Strategy 8 Risk Management 8 Metrics and Targets 8 GHG Emissions 8 Science Based Targets 9 Products Innovation & Stewardship 10 Customer Engagement 11 Pathway Towards Zero Emissions 11 Battery Manufacturing 12 Zero Emission Trucks 12 Low Carbon and Renewable Fuels 13 Advanced Vehicles 14 Remanufacturing 14 Connected Trucks and Driver Training 14 Social Responsibility and Ethical Business Conduct 15 Global Code of Business Conduct 15 Commitment to Integrity 16 Commitment to Human Rights 16 Commitment to Environment, Health, and Safety 16 Honest and Ethical Business Practice 16 3 Financial Integrity 16 Interaction with PACCAR Partners 16 Global Trade Compliance 17 Responsibility to Investors and Shareholders 17 PACCAR Resources for Reporting Concerns 17 Talent Training & Development 17 Workplace Safety 18 Employee Well-Being 18 Cybersecurity and Systems Availability 19 Management and Training 19 Oversight and Governance 19 Philanthropy & Community 20 Government Relations & Public Policy 21 Government Relations Oversight 21 Company Contributions 21 Proactive Climate Engagement 22 Supplier Sustainability Engagement 22 Supplier Code of Conduct 23 Ethical Business Conduct 23 Labor and Human Rights 24 Health and Safety 25 Responsible Sourcing 25 Environment 26 Data Management 26 Sustainable Purchasing 27 Feedback and Violations 27 State of California Transparency in Supply Chains Act 28 Conflict Minerals and Critical Materials 28 Corporate Governance 29 Sustainability 29 Board of Directors 30 Executive Compensation 31 Shareholder Rights 32 Audit and Risk Oversight 32 4 PACCAR Environmental, Social and Governance (ESG) Report 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. Environmental Policy 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. 5 Operations 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