Governance
Responsible business
For a company to positively contribute to a better world, good governance is essential. Compliance with laws and regulations is a fundamental requirement for the company to operate legally and ethically. DAF’s corporate governance policies and practices ensure that the Company is governed in accordance with the highest standards of integrity and in the best interests of its stakeholders. The next parts of this chapter will outline our governance framework, highlight our ethical practices, and demonstrate how we actively engage with stakeholders to promote transparency and accountability
Build a resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
We are increasing resource-use efficiency and adopting clean and environmentally sound technologies in our production processes.
Targets:
2026: ESG in dealer standards
2027: Update supplier management process
2027: Implement supplier due diligence program
2030: >95% participation rate for compliance trainings
Governance the foundation for sustainability
Governance structure
DAF Trucks operates under a two-tier board system, consisting of a Supervisory Board and a Board of Management. The Supervisory Board focuses on oversight, strategy, and long-term planning, while the Board of Management is tasked with operational leadership, strategy execution, and financial management. Key members of the Board of Management, including the President, are chaired in the ESG Steering Committee, which holds the responsibility for shaping and guiding DAF’s ESG strategy. This committee ensures that sustainability is integrated into the company’s overall objectives and priorities. The ESG steering Committee meets quarterly to discuss the progress of the sustainability pillars against the roadmap, (potential) bottlenecks and new insights from stakeholder engagements or industry trends.
Supporting the ESG Steering Committee is the ESG core team, which consists of representatives from various departments within DAF on either board level or colleagues reporting to board members. This group is responsible for executing essential tasks such as conducting risk and opportunity assessments, performing scenario analyses, and planning sustainability initiatives. The Sustainability manager is the catalyst for the ESG core team, ensuring compliance with relevant sustainability legislations, industry best practices and oversight on the progress of all sustainability initiatives stemming from the Sustainability framework. Subject Matter Experts (SMEs) are working with the ESG core team members in departmental Sustainability teams. Depending on the priority of the topics, the frequency of the departmental sustainability team meetings is defined, and the relevant business division manager and SME take seat in the meeting.
Code of Conduct
Employees and business partners including, suppliers and dealers, are expected to comply with the law and the highest standards of honest and ethical conduct. DAF expects its dealers to have their own compliance program, with audits in place.
Employees receive ongoing training on conducting business with integrity. Depending on the risks employees face in their jobs, these training focus on aspects like human rights, ethical business practice, financial integrity, global trade compliance, interaction with stakeholders, health and safety, and aim to reduce our impact on the environment. The PACCAR Code of Conduct also details how employees can anonymously report code violations through a hotline and clarifies PACCARs non-retaliation policy.
Speak up / Whistle Blower Policy
Our Speak Up and Non-Retaliation Policy encourages individuals to report any concerns or suspect of potential violations related to the PACCAR Code of Conduct, internal rules, or relevant legislation. When you raise a concern, you do not only protect yourself but also contribute to a safer and more ethical workplace.
To facilitate this, we have implemented a whistleblower procedure, allowing employees, temporary workers, suppliers, and business partners to report issues confidentially. Reports can be made directly to managers, HR, or through the PACCAR hotline. All reports are taken seriously and we conduct investigation to substantiate the concern or suspect of potential violation. If reports are substantiated DAF will conduct follow-up actions to fix it and (re)design procedures to prevent a recurring occurrence.
We uphold a strict non-retaliation policy, ensuring that individuals who speak up in good faith will not face negative consequences. By empowering everyone to speak up, DAF Trucks reinforces its ethical conduct and supportive work environment, where integrity is valued and protected.
Attention for and by our supply chain
Suppliers are selected based on many factors, including quality, innovation, cost, financial viability, and regulatory compliance. DAF’s expectations for tier one suppliers and their sub-suppliers are clearly defined in the updated Supplier Code of Conduct, which addresses critical areas such as ethical business practices, labor and human rights, health and safety, responsible sourcing, environmental sustainability, data management, and protocols for feedback and reporting violations. DAF’s long term supply management vision is focused on value sourcing and the strategic management of five key areas:
- Quality: suppliers’ production processes must conform to PACCAR’s quality requirements, drawn up in accordance with ISO and IATF standards.
- Logistics: to deliver new trucks (and aftermarket parts) on time to our customers, reliable shipments from suppliers are essential.
- Know How: to stay up to date with developments, we expect suppliers to share their technology and know- how of new products and future systems.
- Competitive Position & Total Cost: our suppliers are expected to submit ideas to improve products & processes that help optimize costs, quality, and functionality.
- Continuous Improvement & Sustainability: working with suppliers on continuous improvement helps us produce the best quality trucks in the most efficient, cost- effective way. This leads to optimal use of resources, contributing to sustainability.
Suppliers are, as all other stakeholders, expected to uphold the highest standards of integrity, avoid conflicts of interest, and ensure fair labor practices. This includes respecting human rights, providing safe working conditions, and prohibiting forced labor and human trafficking. Additionally, the Code expects compliance with environmental regulations and the sustainable management of resources, including responsible sourcing of materials. Suppliers are required to implement continuous improvement programs and maintain transparency throughout the supply chain.
In 2024 the Supplier Code of Conduct was updated in alignment with the DAF Sustainability framework.
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