PACCAR

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

PACCAR has targets to reduce its scope 1 and 2 emissions by 35% and scope 3 emissions by 25%, by 2030 compared to 2018. These targets were established in alignment with the well-below 2°C pathway. However, given the scale of the climate crisis and in accordance with the Paris Agreement goals, companies are recommended to align their emissions reduction targets with the 1.5°C scenario. Overall, PACCAR’s scope 1, 2 and 3 emissions have increased between 2020 and 2022, with an increase in 2020-2021 followed by a slight decrease in 2021-2022, but still remaining above 2019 emission levels.

PACCAR has developed a transition plan outlining both short- and long-term action plans that include financial estimations of future expenses. The transition plan considers a shadow carbon price for its capital budget allocation. While the company’s board of directors have oversight of the company’s climate plan, the company should have a climate change expert as part of the board. Additionally, there is no internal process to review and update the transition plan, despite the Science Based Targets Initiative (SBTi) pausing target validation for medium- and heavy-duty vehicle manufacturers due to the sector lacking a 1.5°C pathway for their most intensive scope 3 emissions. As of October 2024, the pause has been lifted.

In 2023, PACCAR reported a total capital expenditure (CapEx) of USD 698 million and a total research and development (R&D) expenditure of USD 411 million. However, it does not report the share of its CapEx or R&D investments dedicated to low-carbon technologies. Moreover, the company does not report enough information to allow for a meaningful assessment of its projected scope 3 emissions intensity.

PACCAR does not require its suppliers to comply with greenhouse gas (GHG) emissions reduction targets. While the company engages with suppliers on climate-related information and screens their sustainability scoring, it has no specific targets to evaluate suppliers. PACCAR engages with its customers on optimising fuel economy for its trucks. There is evidence that PACCAR is a member of associations, alliances or coalitions with negative climate positions. Moreover, the company does not disclose an action plan detailing its response in case of misalignment with an association’s climate policy position.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. The company has a grievance mechanism available to workers and external stakeholders. However, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

Besides a publicly available policy statement that expects its business relationships to commit to respecting the health and safety of their workers, there is no other publicly available evidence of the company’s policies or commitments related to key decent work issues. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

The company commits to personal data protection, and it has policies for prohibiting bribery and corruption, and ensuring responsible tax practices and responsible lobbying and political engagement. However, the company can strengthen its disclosure on these subjects.