Navistar International Corp (NAV) 2022年CSR報告「NYSE」.pdf

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1、Accelerate the Impact of Sustainable MobilitySUSTAINABILITY REPORT 2022 FROM THE CEOIf you told me five years ago that I would become the CEO of a North American commercial vehicle company,I would have been humbled and surprised.If you went on to tell me how quickly the topic of sustainability would

2、 be amplified on the global agenda,I would have been equally taken aback.In 2022,my second year as Navistar CEO,Im honored and appreciative that both have rung true.As global sustainability efforts continue to gain momentum,we are steadfast in driving economic prosperity without creating an environm

3、ental debt for future generations.A rapid transformation is underway in the transportation sector,and we are at a pivotal moment to make decisions that will accelerate the impact of sustainable mobility.This requires us to embrace an enormous amount of change,but one thing we all know is that change

4、 is constant.Like many of you,Navistar has thrived in critical moments of change throughout its rich history.We made the courageous decision to transition our business from agriculture to commercial transportation,developed new technology in safely assisting NASAs exploration to the moon,and became

5、the first modern-day manufacturer of fully integrated school buses.I understand the difficulty in stepping outside our comfort zones,but theres only one way to do it one step at a time.We have experienced countless innovations that changed the world because of the bold few willing to take that first

6、 step.Today,we are fearlessly pursuing uncharted territory,hand-in-hand with our customers,dealers,and partners to develop modern mobility solutions and explore new and improved ways tosustainably move people and goods.For us,its not about being the first or the largest.Its about having the best val

7、ue proposition for our customers.Our strategic pillars introduced in 2021 Profitable Performance,Foundation for Future,Sustainable Impact and Culture and Leadership continue to guide us in that relentless pursuit.PROFITABLE PERFORMANCEIn 2022,we introduced our final internal combustion powertrain pl

8、atform.The International S13 Integrated Powertrain,which will begin powering vehicles on the road in the second half of 2023,was designed in collaboration with our partner brands within the TRATON Group.Recognizing that the transition to zero-emissions vehicles will not happen in one step,we investe

9、d in increasingly efficient traditional propulsion technologies that allow for progress toward a more sustainable future.With the introduction of the S13 Integrated Powertrain,we are concentrating on services and solutions that offer customers improved uptime.Pairing the sale of a vehicle with a sol

10、ution that minimizes repair and maintenance risks highlights our commitment to keep customers on the road and helps us win in the highly competitive landscape of transport and logistics.FOUNDATION FOR FUTUREWhile supporting our customers transition toward more sustainable and profitable business ope

11、rations,we are readying our unrivaled network of dealers and partners in zero emissions.There is a lot of conversation surrounding when zero-emissions vehicles will reach cost parity.When it happens,we aim to be ready to support every customers journey,regardless of where they are.Technologies like

12、electrification,automation,and digitalization will fundamentally change our industry.As a member of the global TRATON Group,we have the benefit of leveraging a modular system to shape the transition to sustainable transportation.The TRATON Modular System allows for the TRATON Group to join forces,br

13、oaden performance steps,and increase the speed at which the latest technologies are validated and commercialized within the North American market.SUSTAINABLE IMPACTWe are collaborating with our customers,dealers,partners,and local,state and federal authorities to help take the first,second,and third

14、 steps towards a decarbonized future.We remain dedicated to reaching the goal of 50%new zero-emissions vehicle sales by 2030 for the U.S.market,dependent on charging capacity.Our sustainability efforts begin with zero-emissions vehicles.Sustainability encompasses our environmental footprint,total so

15、cial impact,and diversity,equity,and inclusion efforts.We are developing targets aligned with the Science Based Targets initiative(SBTi)criteria to set emissions reductions targets in line with the latest climate science to reach net zero.We support outcomes-driven programs focused on impacting educ

16、ation,equity,and the environment to drive positive change in communities where we live and work.We also participate with more than 2,400 CEOs through CEO Action to cultivate and empower inclusive environments for all stakeholders.CULTURE&LEADERSHIPThere is a deep connection between our performance a

17、nd company culture.In 2022,we began to anchor our TRATON Group shared values of Customer First,Respect,Team Spirit,Responsibility,and Elimination of Waste within Navistar.I look forward to the integration of these values into how we make decisions,as they are critical to our financial results,employ

18、ee experience,customer satisfaction,carbon footprint,and more.This report underscores many of the successes Navistar achieved the past year.Together,we are unafraid to take risks and do not take lightly our responsibility to our people and planet.I am grateful to lead this great organization into a

19、future where sustainable transportation is the reality.Mathias Carlbaum President and Chief Executive Officer2NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETVIEW OUR VISION VIDEOINTRODUCTION Company OverviewA Member of TRATON GroupVision&StrategyOur Path to Zero Emiss

20、ionsPEOPLE Engaging with all our StakeholdersNew ValuesPeople&CultureEmbracing Diversity,Equity,&InclusionEmployee Resource GroupsPromoting Supplier DiversityContributing to Our CommunitiesSupport for Training&EducationWorkplace SafetyPLANET DecarbonizationCircular BusinessEnvironmental ComplianceRE

21、SPONSIBILITY Governance,Compliance,&Risk ManagementGovernment RelationsInnovationResponsibility in the Supply ChainIMPACT Sustainability Performance MetricsAbout this ReportGRICONTENTS3NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETIN THIS SECTION:Company OverviewA Me

22、mber of TRATON GroupVision&StrategyOur Path to Zero EmissionsINTRODUCTION4NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETNavistar is making a notable shift from offering not only products but also providing comprehensive solutions to help customers meet their business

23、 needs now and in the future,including telematics,aftersales support and financing.For electric vehicles,Navistar helps customers plan,execute,and optimize zero-emissions vehicles and investments for the entire lifecycle.In parallel,Navistar is developing processes for managing battery end-of-life r

24、epurposing and recycling.Navistar world headquarters are located in Lisle,Illinois.Additional facilities are located throughout North America,including:Rochester Hills Zero Emissions R&D Facility Detroit,MichiganSan Antonio Advanced Technology Center San Antonio,TexasNew Carlisle Proving Grounds New

25、 Carlisle,IndianaWoodridge Product Support Center Woodridge,IllinoisManufacturing facility locations:Escobedo,Mexico truck plantHuntsville,Alabama powertrain plantSan Antonio,Texas truck plantSpringfield,Ohio truck plantTulsa,Oklahoma school bus plantParts distribution center locations:Atlanta,Georg

26、iaDallas,TexasEdmonton,Acheson,Alberta,CanadaHamilton,Ontario,CanadaLas Vegas,NevadaMemphis,TennesseeMidwest(Joliet,Illinois)Quertaro,MexicoYork,PennsylvaniaAs of December 31,2022,Navistar had approximately 14,200 employees worldwide.Roughly 58%of all employees were represented by labor unions and s

27、upported by collective bargaining agreements.With a history of innovation dating back to 1831,Navistar and its subsidiaries produce International commercial trucks and engines,IC Bus school and commercial buses,as well as all-makes OnCommand Connection advanced connectivity services and Fleetrite,Re

28、NEWeD,and Diamond Advantage aftermarket parts.In 2021,Navistar began serial production on two electric vehicle models:the IC Bus electric CE Series school bus and the International eMVTM Series medium-duty electric truck.COMPANY OVERVIEW 5NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTROD

29、UCTIONPEOPLEPLANETCOMPANY OVERVIEWNAVISTAR TODAY#143%20%BRAND IN SCHOOL BUSESb#2BRAND IN CLASS 67b#4BRAND IN CLASS 8bCORE BUSINESS:Class 68 trucks and buses in U.S.and CanadaLARGEST DEALER AND SERVICE NETWORKin North Americaaof all school buses on the road today are our IC Bus branda.Including servi

30、ce partnership with Loves Travel Stops and Speedco.b.Based on 2022 on the road today by OEM.School buses include Classes B,C and D.of U.S.Class 6 through 8 vehicles on the road today are an International truckPrimary business operations in:U.S.CANADAMEXICO2022 total unit sales:81,892trucks and buses

31、Worldwide employees:c,d14,200Headquarters:LISLE,ILLINOIS,U.S.40%c.Includes active employees and employees on paid leave for US/Canada/Mexico excludes co-ops,interns,apprentices,and contractors.d.Different method used compared to Navistars 2021 Sustainability Report.6NAVISTAR SUSTAINABILITY REPORT 20

32、22IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETA MEMBER OF TRATON GROUPTRANSFORMING TRANSPORTATION TOGETHERNavistar merged with TRATON effective July 1,2021,becoming a full member of TRATON Group,along with the brands Scania,MAN and Volkswagen Truck&Bus.The TRATON Group is one of the worlds leading c

33、ommercial vehicle manufacturers.The aim is to reinvent transportation with products,services and as a partner to customers.Highlights of the further integration of Navistar into the TRATON Group include:An introduction of the International S13 Integrated PowertrainA foundation to leverage the TRATON

34、 Group modular systemAn established foundation to roll out the Navistar values as part of the companys culture transformation and to support the Culture&Leadership pillar of the Navistar strategyAn increased knowledge across TRATON Group through new opportunities for cross-brand people exchange assi

35、gnmentsNavistar is part of TRATONs strategy of being a responsible company and is embedded into TRATON Groups sustainability governance structure.Navistar sets its priorities,resources,and methods individually in line with its corporate culture and strategy.Navistars strategy,together with the strat

36、egies of the other Group brands,build the basis for TRATONs sustainability efforts.Based on this,the TRATON Sustainability Board gives strategic direction and defines joint impact areas.It is also used as a platform for knowledge transfer and for ensuring acceleration of best practices within the TR

37、ATON Group.The TRATON Sustainability Board consists of the TRATON Executive Board and certain key TRATON executives and is led by the Chief Executive Officer of TRATON SE.Navistar is also represented.New Group-wide programs and measures receive their final approval from the Navistar Executive Manage

38、ment and the TRATON Executive Board.Navistar is solely responsible for the implementation of these programs in its respective market.7NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETFOUNDATION FOR FUTUREWe are investing wisely in digitalization,zero emissions and auton

39、omous solutions.We are creating new business models where it makes most sense for our customers.We are leveraging our partnerships and resources,as a member of TRATON Group,to accelerate our progress on technologies that anticipate and help manage demands coming our way.CULTURE&LEADERSHIPWe will be

40、known for our strong culture,which guides every decision,every day.Each employee is empowered and trusted to make the right choices,embracing accountability for our long-term success.SUSTAINABLE IMPACTWithin the transport sector,our industry accounts for a significant percentage of total emissions.W

41、e accept responsibility for bending the curve on carbon emissions by driving change to advance sustainable solutions.PROFITABLE PERFORMANCEOur number one priority is to become a healthy,well-rounded and profitable company.In partnership with our dealer network,we strive to offer the best holistic ex

42、perience and solutions for our customers.OUR COMMITMENTWe want future generations to look back and see that we acted to create a better place in which they can thrive.Our vision is to accelerate the impact of sustainable mobility.This is our guiding star and informs all future decisions.VISION&STRAT

43、EGYIn 2022,Navistar continued its vision and strategy it had developed in the previous year.8NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETIn August 2022,Navistar unveiled the International S13 Integrated Powertrain.Navistar and the TRATON Group invested heavily in a

44、 common base engine,transmission and aftertreatment system for more than five years.Designed from the ground up,the S13 Integrated Powertrain leverages global scale across the TRATON Group.Modularity allows the TRATON Group to utilize shared research and development,and paring that development down

45、to the best,most essential components that work in standardized interfaces across products.Navistar also continued its journey of creating a sustainable range of zero-emissions solutions for customers in 2022.Navistars products remain the largest source of its Scope 3 emissions.We strive to achieve

46、50%new battery electric vehicle sales by 2030 and 100%by 2040 for the U.S.market.With the right policies and infrastructure development,we see the stage being set for rapid deployment of zero-emissions vehicles.Some of it is out of our direct control,the infrastructure deployment most critically,but

47、 we are dedicated to moving commercial transportation to electric.In 2022,we sold 267 truck and bus electric vehicles in the U.S.and Canada.OUR PATH TO ZERO EMISSIONS9NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETPEOPLEIN THIS SECTION:Engaging with all our Stakeholde

48、rsNew ValuesPeople&CultureEmbracing Diversity,Equity,&InclusionEmployee Resource GroupsPromoting Supplier DiversityContributing to Our CommunitiesSupport for Training&EducationWorkplace Safety10NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANET“International and IC Bus a

49、re collaborating side-by-side with our customers,dealers,partners and local,state and federal authorities to help take the firstand second and thirdsteps towards a decarbonized future.”Mathias CarlbaumPresident and Chief Executive OfficerNavistar is collaborating across our entire interconnected eco

50、system of stakeholders,and holding ourselves accountable to lead the biggest revolution in sustainable,reliable,and cost-effective transportation we have ever seen.ENGAGING WITH ALL OUR STAKEHOLDERSTRATONEMPLOYEESSUPPLIERSGOVERNMENT OFFICIALS&ALLIESCOMMUNITIES IN WHICH WE LIVE&WORKCUSTOMERSDEALERSPA

51、RTNERS11NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETNEW VALUESWHY WE NEED CORE VALUESIn April 2022,global cross functional leaders representing all TRATON brands participated in a leadership strategy workshop to gain consensus regarding top priorities for increased

52、 collaboration and cross-brand alignment.The need to articulate shared values and leadership emerged as a vital focus.We agreed that our results are linked to how we behave,think,and make decisions.The realization of every goal whether for profitability,employee experience,customer satisfaction,prod

53、uct quality,or carbon footprint depends on collaboration and shared accountability.To be productive,people need to work from a synchronized foundation a shared understanding that informs the methods used to gain results.These methodologies are a practical application of our principles which are ulti

54、mately an expression of our core values.Our core values drive every aspect of equitable,ethical growthNavistar launched the evolution of its core values in November 2022 during a top management meeting and introduced the new values to all employees during a Town Hall in January 2023.Participation in

55、cluded over 2,100 employees,and people leaders were tasked to activate the companys new values by leading three workshops with their team members where they discussed what each value means to their particular team.RESPONSIBLE PEOPLE,RESPONSIBLE COMPANYNavistars values-based culture has been many yea

56、rs in the making.What is new is the language we use,as part of TRATON Group,to advance our transformational journey.For example,we historically believed that responsible companies use their resources wisely.As we began to address our responsibility to the planet,this was expressed in terms of reduci

57、ng materials waste.In 2022,we acknowledged that waste should be expunged from our processes and systems;it must be eliminated at its source.Thats why saving time and elevating the value of our greatest asset(our employees)is key to our sustainability plan.By focusing on how people thrive in a values

58、-driven,global enterprise,we empower people to act with integrity,pursue innovation,and accelerate the impact of sustainable mobility.CUSTOMER FIRSTHow do we serve those that pay for our solutions?Our customers need to be the reference for what we do and dont do.Our reason of being and ability to th

59、rive is defined through how well we manage to solve our customers current and future problems.ELIMINATION OF WASTEHow do we use our resources wisely?A relentless search for waste activities with no value is imperative to our continued competitiveness.RESPONSIBILITYWhat are our obligations towards so

60、ciety and environment?Acting with responsibility and integrity always pays off in the long run not only for society and environment but also for the companys competitiveness.RESPECTHow do we act towards each other?Mutual respect is necessary for psychological safety,individual responsibility and cre

61、ativity.It is also required as we want collaboration within and between teams,creative improvements and efficient processes.TEAM SPIRITHow do we collaborate to achieve results?We work together to create synergies,learn from each other,deliver value and make use of our unique strengths.We can only wi

62、n together.Team spirit is the foundation of all collaboration.12NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETIn 2022,the P&C team solidified its vision to optimize the employee experience through a culture focused on health and well-being at work and at home.Our mis

63、sion is to foster the development of healthy individuals,teams,community and family.We use a well-being and inclusion lens when evaluating our programs and offerings to meet the needs of our employees.An overarching theme for these efforts is respect for each others time and a commitment to focus ou

64、r energy on activities that add value for stakeholders.SAVING TIME WITH SAPIn 2022,Navistar laid the groundwork for switching to the SAP enterprise resource planning system a strategic initiative designed to save time and limit issues for our people.The purpose of this cloud-based software platform

65、is to drive process efficiency through an end-to-end suite of applications that can adapt and scale as part of our corporate transformation and that combines multiple systems into one consolidated platform.Specific to P&C resources,this platform streamlines employee access to vital HR information,re

66、cords,benefits forms,etc.,providing a single go-to source that can be accessed from any authorized device with an internet connection and a web browser.LISTENING TO LEARNP&C teams continued efforts to build a culture of inclusivity at Navistar by proactively anticipating and addressing employee need

67、s.This was accomplished by using a variety of surveys and listening sessions.In 2022,the following actions were taken to better understand how P&C efforts can best support our people:People Leader Survey 415 participantsEX Pulse Survey 4,108 employee responsesVirtual Focus Group 1,263 employee parti

68、cipantsCross-functional Focus Group on Values 80 participants representing the cross-brand talent programsMENTAL HEALTH WELLNESS APPTo address the increasing levels of stress,anxiety,and depression seen in the workforce,Navistar launched a program to help employees monitor and manage their mental he

69、alth through offering memberships to a self-guided mobile app.Offered companywide,the app presents a menu of features to support mental health at work and at home,and each Navistar employee can share the app with up to five people.WELL-BEING FOR THE WHOLE PERSONIn considering initiatives,processes,a

70、nd benefits to support Navistar employees,the P&C team also looked at opportunities for personal development in the context of the four pillars of healthy well-being that affect both work life and home life.Mental well rested and equipped to deal with daily demands and stressful situationsPhysical h

71、aving overall good health,with the energy to meet daily challenges and opportunitiesFinancial the ability to manage personal finances in a stress-free way,providing a sense of securitySocial having supportive relationships that bring happiness and a sense of contentmentAt Navistar,we believe that th

72、e passion and potential of people is unleashed when they bring their best selves to work and life every day.Our teams are encouraged to cultivate diversity,embrace change and innovation,live our values,and lead with purpose.People&Culture(P&C)initiatives launched in 2022 are reflective of a proactiv

73、e approach to optimizing the employee experience within a culture focused on health and well-being,both at work and at home.PEOPLE&CULTURE TRANSFORMATION 13NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETEMBRACING DIVERSITY,EQUITY,&INCLUSION Navistar continues to be de

74、eply committed to diversity,equity,and inclusion(DEI).The companys vision is to empower an inclusive and engaged culture that drives a sense of belonging and celebrates and respects our differences.For employees,we create an inclusive work culture by recruiting,hiring,training,developing,and retaini

75、ng team members from diverse backgrounds.For customers and suppliers,we maintain and grow Navistars supplier diversity program.For our communities,it means partnering with local organizations that support Navistars social justice values.WHAT DEI MEANS TO NAVISTAR DIVERSITYWe embrace all expressions

76、of diversity race,ethnicity,gender,gender identity,age,national origin,religion,disability,sexual orientation,socioeconomic status,education,marital status,language,physical appearance,and diversity of thought(ideas,perspectives,and values).EQUITYWe help all employees succeed by acknowledging their

77、unique needs;providing fair treatment,access,opportunity,and advancement;and eliminating barriers to their full participation in all aspects of the employee experience.INCLUSIONWe create an environment that is both diverse and inclusive,that gives every individual and group space to be themselves at

78、 work because they feel welcomed,respected,supported,and valued.At Navistar,we succeed when we actively involve everyones ideas,knowledge,perspectives,approaches,and styles.1414NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANET15DEINavistar stands united with people of a

79、ll races,cultures,identities,sexual orientations,ages,religions,abilities,languages,experiences,and expressions.We condemn all forms of injustice and violence and hold ourselves and each other accountable for building an equitable and inclusive workplace in which diverse teams thrive.15CONTINUING PR

80、OGRESS,GROWING OUR TEAM As the newest member of the TRATON Group,Navistar continued to collaborate cross-brand with our DEI counterparts to share best practices and brainstorm.We also continued leadership development programs for underrepresented groups.One common goal within all TRATON brands:Incre

81、ase women in management positions 20%by 2024 and 30%by 2029.At Navistar,we have already achieved the goal for 2024,and our goal is to reach 30%by 2029.In total,approximately 1,000 Navistar women have graduated from leadership development training through the Empowering Women Network,a virtual educat

82、ion program that shortens the gap to womens advancement.Using real-world examples and practical management insights,this six-week program helps new or emerging women managers to develop leadership abilities,competencies and strengths.President and CEO Mathias Carlbaum continued to support CEO Action

83、 for Diversity and Inclusion.This initiative is the largest CEO-driven business commitment to advance diversity and inclusion within the workplace,and society at large.1In 2022,we established our eighth Employee Resource Group,the Parents and Caregivers Alliance.The Navistar DEI team hired a dedicat

84、ed resource for diverse recruiting and a diversity analyst to focus on expanding our DEI communications.EMBRACING DIVERSITY,EQUITY,AND INCLUSION1.Source: SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETEMPLOYEE RESOURCE GROUPSEmployee Resource Groups(ERGs)are voluntary,employee

85、-led groups that foster a diverse,inclusive workplace aligned with our organizational mission,values,goals,business practices and objectives.Navistar ERGs provide a sense of community,personal and professional development,volunteer opportunities,allyship and more.Everyone at Navistar is welcome and

86、encouraged to join.NYPNavistar Young ProfessionalsNYP empowers and develops young professionals,leverages strengths through a multi-generational workforce,and contributes to Navistars profitability and growth initiatives.NPANavistar Pride AllianceNPA represents Navistar employees and contractors who

87、 are gay,lesbian,bisexual,transgender,questioning and/or queer(LGBTQ),as well as their supporters and allies.MVANMilitary Veterans at NavistarMVAN promotes camaraderie and mentorship,and creates a networking forum for veterans while enhancing Navistar as an employer of choice for veterans and their

88、families.ICAANInternational Community of African Americans at NavistarICAAN fosters a culture where African Americans can develop professionally in a workplace that encourages diversity and inclusion,providing a competitive advantage that strengthens employee satisfaction and advocacy for Navistar.N

89、.A.P.A.Navistar Asian Professional AssociationN.A.P.A.shares Asian culture,language and history with all of Navistar through food,celebration and social events.We believe sharing Asian values can help Navistar achieve its global business goals through understanding and learning from one of the world

90、s fastest-growing economies.PLANProfessional Latino Association at Navistar The mission of the Professional Latino Association at Navistar(PLAN)is to provide professional development,community involvement,and cultural awareness opportunities that align with Navistars values.PCAParents and Caregivers

91、 Alliance(established in 2022)PCA strives to celebrate and support Navistars parents and caregivers with appropriate resources,guidance and encouragement to help them achieve their personal best.WINWomen in NavistarWIN empowers and inspires women at Navistar by providing opportunities to foster prof

92、essional success,mentor,network,and build on both product knowledge and organizational savvy.16NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETEMPLOYEES GET INVOLVEDIn 2022,Navistars employee resource groups(ERGs)collaborated across the company,raising funds and volunt

93、eering to help support communities and causes important to them.Navistar ERGs create awareness and fundraise for various causes,a vital part of the companys social impact strategy and vision.EMPLOYEE RESOURCE GROUPSHELP FOR UKRAINEIn April 2022,all Navistar ERGs collaborated to raise funds for victi

94、ms of the war in Ukraine.We echoed the call to action with Volkswagen Group and Navistars ERGs collectively agreed to supplement member donations.Navistar employees answered the challenge,resulting in a combination of personal and ERG-supplemented donations.AIDS WALKThe Navistar Pride Alliance(NPA)o

95、rganized a group to participate in the 2022 AIDS Run&Walk Chicago to raise funds for the AIDS Foundation.The NPA Team contributed to the event,which raises awareness and funds for AIDS Foundation Chicago.Proceeds directly benefit programs and services improving the lives of Chicagoans living with an

96、d vulnerable toHIV.BREAST CANCER AWARENESSThe Women in Navistar(WIN)ERG took the lead to organize several awareness and fundraising events for breast cancer education and research alongside various other ERGs and functional departments.Employees from Lisle and Springfield to Tulsa,San Antonio and Me

97、xico raised around$23,000 for the Susan G.Komen Foundation,Breast Cancer Research Foundation and National Breast Cancer Foundation.HONORING WHO WE AREOur ERGs play an important role in promoting inclusion and celebrating diversity.In 2022,several ERG events honored our various backgrounds and experi

98、ences from inviting all employees to learn about Juneteenth and Diwali through food and festivities to recognizing the contributions of women at Navistar.17NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETAs a result of our efforts to sustain a robust and diverse suppli

99、er base,Navistar finished 2022 having spent:$266.4 million on purchases from Minority Business Enterprises(MBE)and Women Business Enterprises(WBE)$608 million with Small Business Enterprises(SBE)$25 million Veteran Business Enterprises(VBE)$78.7 million Small Disadvantaged Business Enterprises$12 mi

100、llion with enterprises in Historically Underutilized Business Zones(HUB)PROMOTING SUPPLIER DIVERSITY In 1981,Navistar created the very first supplier diversity program of any U.S.truck manufacturer.The goal for the program was to build a sustainable supplier base that reflects the diversity of the m

101、arketplace and fosters an increased year-over-year diverse spend,cost savings,and a best-in-class mentality that financially strengthens the communities where we live,work,and provide products.Navistars Supplier Diversity Program is an important component of our global strategy.We are committed to i

102、ncluding diverse businesses in all communities where we live and work.In 2022,Navistar hosted its annual DEI Supplier Diversity Summit themed“Fostering Innovation and Equity.”This event theme opened the conversation around how electrification,sustainability and DEI together influence workforce diver

103、sity in the manufacturing sector;how diverse suppliers promote innovation in our products;how existing policies promote diversity;and what is being done to prepare future leaders on the importance of DEI before they enter the workforce.The event helped to enforce that supplier diversity is not just

104、the right thing to do,but a prudent way to create a best-in-class mentality that financially strengthens the communities where we live,work,and provide products.Navistar executive leaders and the Supplier Diversity team hosted government officials,industry experts,diverse suppliers and thought leade

105、rs to discuss diversity recruitment,innovations in electrification,smart value chains and policy and investment.Illinois Senator Dick Durbin attended as a guest speaker to share the importance of policies that promote diversity,equity and inclusion,along with discussing electrification in the transp

106、ortation sector.A panel discussion focused on the influence of a diverse employee base,successful best practices of DEI,strategies to boost the number of women and minorities entering engineering careers,and ways that companies can proactively source candidates from underrepresented communities.To f

107、urther recognize our diverse suppliers,in 2022 we held bi-monthly Supplier Spotlight virtual events,where one potential or current diverse supplier was invited to present their capabilities,activities,and successes to the Navistar Procurement team.Recognized companies included:ICAT Logistics Minorit

108、y Business Enterprise(MBE)Chrysan Minority&Women Business Enterprise(MBE)(WBE)Custom Service Plastics Minority&Women Business Enterprise(MBE)(WBE)18NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETPROMOTING SUPPLIER DIVERSITYDIVERSITY PARTNERSHIPS&PROGRAMSCHICAGO MINORI

109、TY SUPPLIER DEVELOPMENT COUNCIL(CMSDC)Navistar is a member of CMSDC and has held a seat on its Board of Directors for over 30 years.CMSDC is a nonprofit corporate membership organization that advances opportunities for Asian,Black,Hispanic,and Native American businesses by connecting them to corpora

110、te members who may need their services.CMSDC partnerships include over 250 private and public sector buying organizations and nearly 1,000 minority businesses.Minority enterprise members report the employment of more than 20,000 workers annually,and buying members report over$3billion in annual purc

111、hases from minority firms.AUTOMOTIVE INDUSTRY GROUPNavistar is proud to be one of 13 major OEMs who participate in the Automotive Industry Group(AIG).Hundreds of diverse suppliers attend AIG events and conferences to connect with OEMs and create awareness of their products and services.In July 2022,

112、the AIG consortium hosted a virtual event entitled Bridging Pathways.At this event,diverse companies were given an opportunity to showcase their products and services and meet with select OEM Tier 1 suppliers with active supplier diversity programs who are looking to increase their diverse spend.HOW

113、ARD UNIVERSITYHoward University,in Washington D.C.,is a historically Black university with a strong Supply Chain Program.Navistar has built an ongoing relationship with leaders and professors of this academic program,with a goal of recruiting diverse team members.Leveraging our experience with Howar

114、d,we will cultivate relationships with other historically Black colleges and universities to expand our talent base.Navistar is currently working with Howard University to become part of their Priority Partnership Program.This program engages corporations to assist Howard University in advancing pro

115、gram growth and student advancement goals,and provides the following opportunities:Navistar leaders engage with students as guest lecturers discussing supply chain challenges and processes with students in the classroom and other settingsDistribution of internship and permanent job placement opportu

116、nitiesIntroduction to students who share specific industry and subject matter interestsLimited invitation to panels and other student-facing eventsVOLKSWAGEN USANavistar has a collaborative relationship with Volkswagen USA,currently meeting on a regular cadence to mentor and share best practices fro

117、m our Supplier Diversity Program.Navistar is working with Volkswagen USA to leverage our purchasing power by combining RFPs between our U.S.facilities,and looking for collaborative initiatives to increase our diverse spend.NAVISTAR LEGAL DIVERSITY HOLDBACK PROGRAMNavistar has a Diversity&Inclusion H

118、oldback Program within the Law Department.The purpose of the program is to increase retention and use of diverse attorneys so that these attorneys have an equal opportunity to become equity partners and relationship partners to Navistar.The program requires a designated set of U.S.-based law firms t

119、o meet certain minimum requirements for having minority and female attorneys perform work on Navistar matters.Navistar is using the ABA Model Diversity Surveys definition of a“minority”attorney for the purposes of this program.If a law firm fails to meet such minimum requirements in a calendar year,

120、Navistar may withhold a certain percentage of all billed time until the law firm has met the minimum requirements.Navistar intends to donate the withheld portions to a specific group benefitting women and minority attorneys.Each year the program is reviewed and adjusted if necessary.Navistar conduct

121、s regular meetings with the law firms to discuss current diversity analytics,possible holdbacks and ways to improve.Due to COVID-19 and other extenuating circumstances,no withholdings occurred in 2022 for the year2021.19NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETS

122、cholarships&Education33.2%Department Contributions24.7%Annual Sponsorships22.6%Community Funds19%Dollars for Doers0.5%CONTRIBUTING TO OUR COMMUNITIESNavistars commitment to being a responsible company encompasses donations and other corporate resources to support qualified nonprofit organization in

123、communities where we have major operations.In 2022,we advanced our giving strategy,devoting more funding over 2021 to support our impact areas of focus:education,equity,and environment.Donations totaled around$475,000 with 14 engines and other equipment donated to ASE Automotive Service Excellence a

124、ccredited technical schools to support their technician training programs and dealer technician recruitment(all numbers rounded):$157,500 Scholarships&Education$117,000 Department Contributions$107,500 Annual Sponsorships$90,000 Community Funds$2,500 Dollars for Doers$474,500 TOTALIMPACT AREASEducat

125、ionEquityEnvironment2022 Equipment Donations 3 chassis 7 trucks 14 engines 1 transmission 5 equipment training aids20NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCONTRIBUTING TO OUR COMMUNITIES DOING GOOD THINGS EVERY DAYInternational trucks and IC Bus vehicles are

126、used to safely transport our children to school,delivering life-saving medicines,and even distributing critical supplies to remote villages in Mexico.Navistar vehicles are also used to help train first responders and create awareness of important equity and social causes in communities,such as breas

127、t cancer research and LGBTQ Pride events.ELECTRIC BUSES FOR SPECIAL NEEDS CHILDRENIn 2022,Navistars Zero Emissions team delivered 38 IC Bus CE Electric Series buses to the Moreno Valley School District in California.All buses were customized by adding wheelchair lifts and continuous air conditioning

128、,which helped transport 3,100 special needs children to 42 different schools.SCHOOL SUPPLIES FOR STUDENTS IN LOW-INCOME COMMUNITIESNavistar employee volunteers,led by our IC Bus team and the International Community of African Americans resource group,joined National Express employees to donate seven

129、 extra-large boxes of school supplies and personal protective equipment to support disadvantaged and autistic children at one Chicago public school and three community centers.Navistar volunteers delivered the supplies on the IC Bus electric CE Series school bus.PREPARING FIRST RESPONDERSWe donated

130、a truck to the Romeoville,Illinois,Fire Department in 2022 to help firefighters practice rescuing trapped passengers during an accident.Navistars Zero Emissions team also educated first responders across the country on electric vehicles to build confidence in unknown scenarios.CREATING AWARENESS LOC

131、ALLYIn 2022,our trucks and buses promoted awareness of local community causes through several events:In June,our Navistar Pride Alliance employee resource group celebrated LGBTQ Pride Month on one of Navistars trucks used as a float at the annual Pride Parade in Aurora,Illinois.In October,for Breast

132、 Cancer Awareness Month,we custom-wrapped an International MVTM Series truck for the Chicago Susan G.Komen Race for the Cure,of which Navistar was a corporate sponsor.EQUIPMENT DONATIONS14 engines and other equipment were donated to 15 ASE-accredited technical schools to support their technician tra

133、ining programs and dealer technician recruiting efforts.Central Piedmont Community College North CarolinaChisholm Institute AustraliaGreater Altoona Career&Technology Center PennsylvaniaJohnsburg High School IllinoisLincoln Land Community College IllinoisMetropolitan Community College NebraskaOhio T

134、echnical College OhioPuerto Rico School Puerto RicoSouthside High School TexasSouth Texas Vocational Technical Institute TexasSouthwest Research Institute TexasState University of New York at Cobleskill New YorkTennessee College of Applied Technology TennesseeTexas State Technical College TexasWeste

135、rn Technical College Wisconsin21NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCONTRIBUTING TO OUR COMMUNITIES SCHOLARSHIPS&EDUCATIONAs Navistar works toward its vision to accelerate the impact of sustainable mobility,the company strengthened its commitment to equitab

136、le access to education.Navistar is proud to offer programs that address a growing need for engineers and qualified technicians,while providing career opportunities for high school graduates of every demographic and background.In 2022,Navistars contributions of$157,500 in scholarships and education s

137、upported 19 diverse students.TECHFORCE FOUNDATIONThrough its International trucks and IC Bus Scholarship program,Navistar contributed$10,000 to the Tech Force Foundation for scholarships granted to three high school students enrolled in diesel trucking programs within a 20-mile radius of any of Navi

138、stars 700 dealership locations nationwide.2022 was Navistars inaugural year working with the foundation,which awards scholarships and grants annually to financially disadvantaged students pursuing technician careers.EMERGING LEADERSHIP IN ENGINEERINGCollege sophomore Stephany Navarro was one of the

139、recipients who earned a Navistar Emerging Leadership in Engineering Scholarship through Navistars“Engineering in Education 4.0 Partnership”with North Central College(NCC)in Naperville,Illinois.The partnership helps diverse students gain access to education that helps build a pipeline of highly quali

140、fied engineers.NORTH CENTRAL COLLEGENavistar supports a three-part initiative to bolster STEM(Science,Technology,Engineering,and Math)efforts for underrepresented engineering students at NCC.In 2022,the company provided funding for:a simulated assembly line space;seven Next Generation Engineering Sc

141、holarships worth$125,000;and various summer research and mentoring programs.In addition,Navistar supports NCC with funding to encourage high school students interest in STEM subjects.IC BUS SCHOLARSHIPS FOR DEALERSIn 2022,Navistar awarded$22,500 to nine high school and college students as part of it

142、s annual IC Bus Scholarship program.Granted to family members of IC Bus dealer employees as a joint effort with its dealer network,these scholarships demonstrate Navistars commitment to technical education for underrepresented students.Each student received$2,500 for education expenses.ANNUAL SPONSO

143、RSHIPSIn 2022,Navistar provided$107,500 in sponsorship support to organizations with public education programs in STEM and programs to support environmental justice and conservation awareness.Sponsorship often includes employee and/or family engagement access to museums or events to promote Navistar

144、s support for social responsibility as a corporate priority.For the first time,in 2022 we expanded our footprint beyond Illinois to impact more communities where we live and work,sponsoring six organizations,including:$25,000 Museum of Science&Industry Chicago,Illinois$25,000 San Antonio Botanical G

145、arden San Antonio,Texas$15,000 Shedd Aquarium Chicago,Illinois$10,000 DuPage Childrens Museum Naperville,Illinois$10,000 Michigan Science Center Detroit,Michigan$10,000 The Morton Arboretum Lisle,IllinoisDEPARTMENT CONTRIBUTIONSDepartments within Navistar supported local,qualified charitable organiz

146、ations with contributions provided from their own budgets.Donations in 2022 totaled$117,355 for 10 organizations:$50,000 First Illinois Robotics Chicago,Illinois$30,000 Harvester Homecoming Fort Wayne,Indiana$10,000 Michigan Science Center Detroit,Michigan$7,105 Fora Sindical(Brazil)Brazil$5,000 Eas

147、ter Seals Greater Houston Houston,Texas$5,000 Junior Achievement of Chicago Chicago,Illinois$5,000 Northwestern University Chicago,Illinois$2,500 The Salvation Army Chicago,Illinois$2,100 The United Nations Association of the USA Washington,DC$650 Rogers County 4-H Claremore,Oklahoma22NAVISTAR SUSTA

148、INABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCONTRIBUTING TO OUR COMMUNITIES STEM AMBASSADORSTo celebrate Hispanic Heritage Month in October 2022,Navistar participated in a Museum of Science and Industry(MSI)event that helped children and their families learn about STEM careers a

149、nd their importance.Almost 7,000 guests gathered,including 14 buses full of families from low-income,Spanish-speaking communities that traveled to Chicago.Navistar employees shared their experiences with attendees,answered questions about Navistars products,and discussed the many resources available

150、 to help pursue STEM careers.With coaching from Navistar engineering colleagues,the children assembled miniature 3D printed engine piston models,explored a 3D model of how a piston works in an engine,manipulated a steering column,and saw how Navistar tests vehicles for aerodynamics.Navistar STEM amb

151、assadors participated in a similar event celebrating Black Creativity Careers at the museum during Black History Month in February 2022.ROBOTICS COMPETITIONTo continue supporting STEM education and the development of young engineers,Navistars R&D Department contributed$50,000 in 2022 to sponsor the

152、FIRST Illinois Robotics Midwest Regional Competition.Teams of high school students showcased robots they developed and operated for a chance to win the title of Midwest Regional Champion.Students built robots that measured up to 6.5 feet tall,weighed up to 150 pounds,and played against each other on

153、 fields the size of a basketball half-court.Their timed challenge was to grab and shoot balls into a center-court basket.An additional test required the robots to perform and score autonomously for the first few seconds of the challenge.Students learned and applied skills,such as focused brainstormi

154、ng,real-world teamwork,and dedicated mentoring to meet project timelines and deadlines.Navistars support of this important program fits with the companys focus on education to address a growing need for talented engineers and technicians while delivering career options to diverse high school graduat

155、es.23NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCONTRIBUTING TO OUR COMMUNITIES COMMUNITY PROGRAMSNavistar supports local,outcomes-driven programs that impact education,equity,and the environment with a focus on conservation awareness and environmental justice.In

156、2022,Navistar donated$90,000 to community programs throughout the Midwest,including:ALLIANCE FOR THE GREAT LAKES$15,000 DonatedNavistars commitment to conserving Americas Great Lakes and waterways involved a$15,000 donation to the Alliance for the Great Lakes.The alliance completes important conserv

157、ation research on areas such as the Calumet River Industrial Corridor in Chicago and organizes vital public events,including beach clean-ups in which Navistar employees participated.ECO-FRIENDLY MOBILE FARM STAND$15,000 DonatedNavistars$15,000 donation supported the creation of an eco-friendly mobil

158、e farm stand that delivered fresh produce from urban sustainable gardens to Chicago urban food deserts,including the Garfield Park community.WILLOWBROOK WILDLIFE CENTER$20,000 DonatedAs part of its strategic giving,Navistar donated$20,000 to support the restoration of the Willowbrook Wildlife Center

159、 in Glen Ellyn,Illinois,a nationally recognized wildlife rehabilitation facility.Navistars support will help develop educational exhibits that showcase the importance of environmental stewardship and respect for local ecosystems.Plans also include new outdoor and indoor rehabilitation areas,an outdo

160、or classroom,and an interpretive trail with wildlife observation areas.The exhibits will be a part of the forest preserve districts first net-zero-designed visitor center,scheduled to open in spring 2024.Energy-efficient features,such as solar panels,will help the facility achieve net-zero status wh

161、ere the energy produced from renewable resources will exceed the energy consumed by the building.Support for this restoration demonstrates Navistars commitment to education and the environment by fostering positive,lasting change in our communities and world.YWCA OF METROPOLITAN CHICAGO$25,000 Donat

162、edWith a donation of$25,000,Navistar continued supporting the YWCA of Metropolitan Chicagos Racial Justice League,which provides anti-racist training and support networks for corporate members.Navistar stands behind the leagues critical work to address systemic racial justice issues through its educ

163、ational,entrepreneurial,and job support programs.24NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCONTRIBUTING TO OUR COMMUNITIES VOLUNTEERING OUR TIMEThrough donations and volunteering efforts in 2022,Navistar employees proved they are the heart of our organization s

164、howing what it means to stand together to care for each other and our world.From aiding local food pantries to helping during a crisis to serving senior citizens,Navistar employees worked hard to support communities near and far,uplift underrepresented people and children,and advocate to make the wo

165、rld a better place.CARING FOR THE ENVIRONMENTNavistar employees rolled up their sleeves to improve ecosystems and the environment.In Escobedo,Mexico,employees partnered with the Autonomous University of Nuevo Len to plant nearly 200 native trees in the community surrounding the manufacturing plant t

166、o enhance air quality and reduce rising temperatures.In San Antonio,Texas,Navistar volunteers spent a morning cleaning up brush to make way for fresh plants and native bird migration.In Chicago,employees joined Navistar CEO Mathias Carlbaum and his family to clean trash and plastics from one of the

167、local beaches.TEAM BUILDING THROUGH SERVICEWhile strengthening their team dynamics,Navistar employees came together to serve others,donating food,school supplies,and gifts to children and families in need.In the U.S.,summer interns and the Navistar Young Professionals ERG packed food for the Norther

168、n Illinois Food Bank and Feed My Starving Children while members of Navistars York Parts Distribution Center in Manchester,Pennsylvania,organized a day of service with the York County Food Bank,labeling and boxing over 2,400 cans of food for local food pantries.Navistar Procurement teams monthly eve

169、nts supported food donations to the Northern Illinois Food Bank,neighborhood clean-ups,and pantry box construction for southside Chicago neighborhoods through MyBlock,My Hood,My City.Navistars San Antonio Assembly Plant team members served meals to senior citizens at the 43rd Annual Raul Jimenez Tha

170、nksgiving Dinner,and assisted Habitat for Humanity with landscaping and building a new home for a local family in need.Dealer Operations team members helped Metropolitan Family Services with a holiday gift drive to support local families affected by domestic abuse.In Mexico,Navistar volunteers from

171、the Quertaro and Mexico City locations joined forces to donate more than 1,000 food items for more than 70 children with special needs at the Casa Hogar San Pablo orphanage.Navistars Mexico City team also drove hours to a rural village to deliver backpacks full of school supplies for children starti

172、ng the new school year.COMING TOGETHER IN CRISISNavistar teams stepped up to help when tragedies struck.San Antonio(SATX)employees raised money for families and victims of the school shooting in Uvalde,Texas,located close to Navistars SanAntonio facilities.The SATX team helped save almost 500 lives

173、by collecting 164 units of blood through three blood drives,winning an award from San Antonio Blood&Tissue.Individuals and groups of Navistar employees earned$2,500 in donations by serving 15 or more hours as volunteers at a nonprofit organization.In 2022,10 organizations received a donation from th

174、is Navistar program:A Journey Home Dog Rescue Oswego,IllinoisCamp Quality USA Kalamazoo,MichiganCanine Companions North Central Region Santa Rosa,CaliforniaCarroll County Amateur Radio Club,Inc.Westminster,MarylandFeed My Starving Children Coon Rapids,MinnesotaIllinois Equine Medical Center Maple Pa

175、rk,IllinoisLincoln Parent Teacher Council DeKalb,IllinoisLoaves and Fishes Community Services Naperville,IllinoisMetropolitan Family Services Chicago,IllinoisNaperville Humane Society Naperville,IllinoisDOLLARS FOR DOERSNavistars“Dollars for Doers”program allows employees to earn Navistar monetary d

176、onations for charities of their choice by volunteering their time.Full-time,salaried Navistar employees who volunteer 15 or more hours to a nonprofit organization are eligible to earn a$250 donation to that organization.25NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANE

177、TCREATING SUSTAINABLE CAREER PATHSAs Navistar works toward its vision of accelerating the impact of sustainable mobility,the companys commitment to STEM(Science,Technology,Engineering,and Math)education and hands-on training has only strengthened.Navistar is proud to offer multiple programs that add

178、ress a growing need for engineers and qualified technicians across a range of career possibilities.To support our dealers recruitment efforts,in 2022 Navistar expanded the TECH EmPOWERment program.This leverages a number of initiatives that provide career opportunities for high school graduates of e

179、very demographic and background,as well as military veterans interested in employment with Navistar dealers.In addition to programs targeting dealership technician opportunities,Navistar offers a number of early career programs to attract young professionals to our own organization.SUPPORT FOR TRAIN

180、ING&EDUCATIONTECH EmPOWERmentOne of the ways Navistar generates sustainable career paths is by supporting our dealer network in efforts to recruit,train,and retain qualified personnel by establishing connections with young people in their communities.Partnering with the National Institute for Automo

181、tive Service Excellence(ASE)and SkillsUSA in 2022,Navistar expanded the TECH EmPOWERment platform.This includes specific outreach programs to recruit more women technicians.TECH EmPOWERment also helps facilitate donations of heavy equipment,training aids,and supplies to technical programs for the pu

182、rpose of training students to service International trucks and IC Bus vehicles upon graduation.In 2022,with the help of dealers across North America,the TECH EmPOWERment program donated equipment and training aids to support 16 technical schools and one firefighter academy.In 2022,Navistar continued

183、 its primary TECH EmPOWERment workstreams and piloted a new“Steering Ahead”internship initiative.Uptime AcademySteering AheadDealership/School PartnershipService AlliesRetention StrategyInternships and apprenticeships are becoming more attractive in todays market because they create a pipeline for n

184、ew hires,bring in fresh perspectives,and provide mentorship opportunities.Engaging with the newest generation at an early age is key to creating sustainable career paths.Further,employee recruitment and retention efforts help keep dealer personnel connected and committed.26NAVISTAR SUSTAINABILITY RE

185、PORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETSUPPORT FOR TRAINING AND EDUCATIONUPTIME ACADEMYThis 12-month,OEM apprenticeship program for high school graduates offers hands-on training to prepare for a career in Navistar vehicle service.Candidates are recruited locally by dealers who then sp

186、onsor them in the program.Based on an established curriculum,dealers provide job assignments at the shop so students can apply what they learned during lab time.The dealership also provides one of their employees as a mentor to each apprentice.The apprenticeship includes real-world experience along

187、with classroom time and lab work.Graduates are then prepared to service multiple Navistar vehicle types including electric and fuel cell technologies.In 2022,the second year of this initiative,Navistar onboarded one new instructor and 18 apprentices.This program spans 11states and 12 unique dealer g

188、roups.STEERING AHEADTo supplement the pipeline for new hires,the International Truck and IC Bus Steering Ahead program provides high schools the opportunity to supplement their technical curriculum with manufacturer-specific online training and in-dealership experience.This takes the form of a part-

189、time,four-month paid internship working at the sponsoring dealership with the goal of fast-tracking successful students into a technician role after they graduate.Students aged 16 to 18 are eligible(depending on local regulations)but must be enrolled in a participating automotive repair/diesel techn

190、ology program through their high school.In October 2022,Steering Ahead was successfully piloted at Rush Trucks,one of the largest International truck dealer groups,and is expected to launch across the dealer network in 2023.DEALERSHIP/SCHOOL PARTNERSHIPThe Navistar Service Essentials Program pairs d

191、ealers with local technical schools to help build a pipeline of trained service technicians within their communities.In 2022,we initiated partnerships between dealerships and 67 local schools and contributed over 120 multilingual training courses at no expense to either the dealer or the school.Sinc

192、e the launch of the Navistar Service Essentials program in 2019,196 dealer/school partners enrolled.SERVICE ALLIESAs part of this Service Allies program,Navistar also supports military veterans by connecting them with International truck and IC Bus dealers for internships and direct-placement jobs.I

193、n 2022,Service Allies helped 27 participating dealers hire 73 individuals with different backgrounds.This initiative also helps to address the shortage of qualified dealership professionals by filling a variety of critical roles,including Diesel Techs,Service Advisors,Parts Counter,Managers,Warranty

194、,and Sales personnel.In 2022,this program was expanded to engage military veterans in online training so they can get a head start on employment while they are still completing their last 30 to 60 days of active duty.Candidates can learn more about the opportunities available at their local Internat

195、ional or IC Bus dealership,including the offered products and services.Dealers interested in establishing relationships with military veterans can arrange to provide them access to Navistars Learning Management System(LMS),which was developed to train dealership personnel.27NAVISTAR SUSTAINABILITY R

196、EPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETSUPPORT FOR TRAINING AND EDUCATIONRETENTION STRATEGYIn 2022,the commercial transportation industry was affected by an average 36.5%attrition in service department jobs.In an effort to help our dealers increase employee retention,Navistar created

197、several new dealer tools,including the Technician Career Playbook,employee experience survey templates,and award recognition programs.The Technician Career PlaybookLaunched in March 2022,this guide equips dealers with best practices and solutions designed to foster a culture of appreciation,job sati

198、sfaction,and employee retention.It was developed based on input from dealership personnel,district service managers,and market research conducted by Navistar.Employee Experience Survey TemplatesThese tools were created to help our International truck and IC Bus dealer network listen to their employe

199、es and learn how to improve employee engagement and culture within their organizations.The survey templates are designed to be anonymous and can be conducted in person or online by each Dealer Group.Best-practice data is also provided to help dealers analyze survey results and prioritize opportuniti

200、es and investments accordingly.Technician Awards and RecognitionIn 2022,Navistar expanded the Technician of Influence Award,which seeks to boost International truck and IC Bus vehicle technician retention by fostering a culture that recognizes excellent performance,outstanding leadership,and the val

201、ue of continuous education.Each month,four rookie technicians(two years of service or less)and two veteran technicians(two or more years of service)are presented with certificates of achievement,gift cards,a Technician of Influence patch for their work shirt,and a magnet for their toolbox.The progra

202、m led to the creation of an annual award event in 2022,Navistars inaugural Technician of the Year Awards.From a pool of 48 monthly Technician of Influence winners,two were recognized as Navistars Technician of the Year.The award included a vacation trip chosen from six U.S.destinations offered.Navis

203、tar also sponsored and celebrated the achievement of two Dealer Technicians who were recognized by the National Institute for Automotive Service Excellence(ASE)as winners of the 2022 ASE Technician of the Year award.The ASE annually recognizes individuals who have distinguished themselves in the aut

204、omotive service industry as the best of the best.28NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETSUPPORT FOR TRAINING AND EDUCATIONSUPPORT FOR EMPLOYEES AND THEIR DEVELOPMENTROTATIONAL AND INTERNSHIP PROGRAMSIn 2022,Navistar expanded its work with colleges and univer

205、sities to provide meaningful work experience and career opportunities for students and recent graduates.These programs are designed to attract bright,young professionals to careers with Navistar through internships,rotational programs,and scholarships.Six programs give candidates a broad range of re

206、levant experiences,including working with mentors,seeing how the business is run,and the opportunity to choose their desired career trajectory.Northern Illinois University MSEE ProgramNavistar partnered with Northern Illinois University to carefully craft a two-year masters degree in Electrical Engi

207、neering,choosing courses that would fit best for future engineering work.Thirty-five Navistar engineers in 2022 started a new program designed to cultivate talent from within to meet the growing needs of the business.The Class of 2024 cohort includes employees in Navistars World Headquarters as well

208、 as in Mexico and Texas.The program is provided at no cost to participants.Kettering UniversityFor nearly 20 years,Navistar has partnered with Kettering University,a STEM-focused institution with an educational model that relies on corporate partners to provide a real-world work experience.Beginning

209、 in their freshman year,students spend alternate semesters in the classroom and the workplace.Navistar interns rotate through a variety of engineering assignments and the result is that they already have more than two years of experience when they graduate.Through the end of 2022,15 Kettering Univer

210、sity students have completed their work rotations at Navistar and of those,seven accepted full-time positions at Navistar.Finance&Accounting Leadership Development(FALD)Navistars FALD program offers graduates a variety of three one-year rotations that provide hands-on experience and executive mentor

211、ship in Accounting,Finance,and Operations.In 2022,13 new students participated in the FALD program,in addition to 13 previously enrolled.Operations Management Development Program(OMDP)Navistars OMDP program provides graduates with cross-functional experience in manufacturing,product development,engi

212、neering,purchasing,logistics,and more.These individuals are employed through four six-month rotations supplemented by formal training in skills deemed necessary for success.In 2022,two new associates began their rotations,for a total of six associates participating in the OMDP program.Information Te

213、chnology Development Program(ITDP)Navistar began recruiting for its new ITDP program in 2022 to attract IT students who are within 12 months of graduation.Designed as a two-year,full immersion experience,each student cycles through four job rotations,each of which lasts six months.Each cohort also p

214、articipates in management and leadership training.City ScholarsThis program specifically addresses the growing need for technology expertise as we drive towards electric vehicles.Beginning in September 2022,Navistar piloted its participation in the City Scholars Program,an initiative created by the

215、University of Illinois Urbana-Champaign to expose exceptional college students from outside the region to computer science and computer engineering careers at Navistar.Funding to bring students to Chicago for a full semester is included in the program.In addition to carrying a full course load,stude

216、nts worked(in-person and virtually)at internships with Navistar.In 2022,four interns were registered to the Navistar City Scholars program.29NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETSUPPORT FOR TRAINING AND EDUCATIONNAVISTAR UNIVERSITYIn 2022,Navistar decided to

217、 rebuild and invest in the corporate university,“Navistar University.”Our investment demonstrates our commitment to our employees growth and development,which in turn fosters engagement and loyalty,making them feel valued and motivated,leading to increased job satisfaction and retention.Focusing res

218、ources to Navistar University will allow us to design and deliver tailored learning programs that align with our strategic goals and objectives in our fast-developing industry.One of the focus areas moving into 2023 will be leadership,which is critical for the long-term sustainability of any organiz

219、ation.TALENT AND PERFORMANCE MANAGEMENTThe new SAP SuccessFactors system also facilitates performance and talent management.A Talent Management and Performance Management Center of Excellence was created this allows the organization to ensure that succession,performance,and development related conve

220、rsations are intertwined,and that we are continuing to facilitate career growth within Navistar.A mid-year check-in was implemented this is the first step taken towards a process focused on continuous performance management,career growth,and giving/receiving of feedback.A“People Exchange”workstream

221、was created across the TRATON Group brands.This is in an effort to facilitate cross-brand knowledge sharing,as well as provide Navistar employees with experience working in a global environment.PARENTAL LEAVETo increase support of employees and their families,Navistar expanded its Paid Parental Chil

222、dbirth and Parental Leaves policy.As of September1,2022,employees are offered eight weeks(previously two weeks)for bonding with and caring for newborns or newly adopted children,as well as an additional eight weeks to support physical recovery from childbirth.PAY EQUITYWith regard to fair income,Nav

223、istar actively seeks to achieve pay equity.This means that employees are paid equally for the same or similar jobs,taking into account other factors such as experience,job performance,and length of service.Percentage of employees receiving regular performance and career development reviews(across U.

224、S.,Canada,&Mexico)99.6%of salaried employees receive a performance review and career conversation on an at least an annual basis56.9%of hourly employees receive a performance review and career conversation on at least an annual basis73.8%of all employees receive a performance review and career conve

225、rsation on at least an annual basis30NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETAs in all previous years,the safety,health,and well-being of its employees remains a constant at Navistar.Executive leadership,plant leadership,and employees across the company are ded

226、icated to a continuous focus on individual and collective safety performance.Navistar is continuously working towards a zero injury or illness state.To do this,we expanded our scope,increased our staff,digitized our sampling plans and much of our historical records.In addition to confirming an overa

227、ll state of compliance,Navistar will audit all of its facilities over the next three years.Targets for a reduction in recordable Incident Frequency Rates(IFR)and Lost Time Case Rates(LTCR)are set annually.Progress toward these goals is monitored monthly by each location individually and reviewed at

228、an enterprise level.Incidents are investigated,and corrective actions are communicated throughout the network during the monthly Central Safety Committee meeting to prevent similar incidents from occurring at other locations.These actions allow us to identify trends and implement recovery plans whic

229、h contributed to our success last year.In 2022,our corporate goals were not met due to the addition of our newest locations,the influx of personnel at several sites,and a fluid workforce in the health and safety departments.These items,in conjunction with the pandemic,created unique challenges.For i

230、nstance,our corporate IFR goal of 0.69 was not met,as we achieved a rate of 0.75,or 0.06 over our set goal.Our LTCR goal of 0.20 was also exceeded by 0.04 for a final rate of 0.24.These numbers represent a slight increase in employee injuries at our facilities even amid efforts to keep those rates a

231、s low as possible.The electric vehicles safety policies,procedures and considerations for our production employees,as well as our service technicians and our engineers,will be a primary focus as we increase production of electric vehicles.Training for all levels of Navistar employees is critical to

232、not only the safety of those who manufacture these vehicles but also our service technicians and our customers.We are active in AIAG Automotive Industry Action Group and in close contact with our sister and parent companies within the Volkswagen Group.We exchange new safety standards in the automoti

233、ve industry to ensure our employees are appropriately trained and equipped to complete their tasks in a safe and healthy manner,in particular in the transition to electrification.WORKPLACE SAFETY31NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETPLANETIN THIS SECTION:De

234、carbonizationCircular BusinessEnvironmental Compliance32NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCLIMATE CHANGE AND SCIENCE-BASED TARGETSNavistars main area of strategic focus is decarbonization.That is,the move away from fossil fuel use both in our operations a

235、nd in our products.In April 2023,Navistar received confirmation of our commitment to set near-term science-based emissions reduction targets with the Science-Based Targets initiative(SBTi).Navistar is now developing its near-term science-based targets for validation within the next 24 months,in line

236、 with the latest SBTi criteria.SBTi is an independent organization that validates corporate decarbonization targets.Navistar takes seriously its responsibility to address the challenges of climate change and to do its part to accelerate the movement toward a sustainable transportation system.Recent

237、reports from the Intergovernmental Panel on Climate Change lay out the challenges and show the significant contributions the transport sector makes to greenhouse gas(GHG)emissions.Navistar generates GHG emissions directly through operations(Scope 1),through energy purchased(Scope2),and as a result o

238、f activities upstream and downstream in the value chain(Scope 3).Navistars decarbonization effort to move away from product fossil fuels began in 2021.Navistars work through 2022 and into 2023,is leading to the development of targets to be submitted to the SBTi.Thistarget will encompass Scope 1 and

239、Scope 2 emissions and a target for Scope 3 emissions from the use of products.The result of this effort will be near-term targets that will show the emissions reductions from our baseline necessary to align us with the Paris Agreement.Climate change presents both risks and opportunities for Navistar

240、.Risks include the potential for adverse climate-related impacts to operations;although risks to specific operations are difficult to assess,they broadly include the potential for additional heat-related events and more frequent and intense storms.They also include regulatory risks in the form of ru

241、les mandating CO2 emissions limits in jurisdictions where Navistar operates and sells products.Given the historic use of fossil-fueled diesel engines,Navistar also faces reputational risk as more customers,and society,in general,demand zero-carbon alternatives.At the same time,Navistar is also prese

242、nted with significant opportunities.These opportunities include increased demand for low-and zero-emissions vehicles.Navistar believes it is well-situated to leverage relationships with customers and its deep knowledge of the industry to provide these solutions.DECARBONIZATION33NAVISTAR SUSTAINABILI

243、TY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDECARBONIZATION In 2022,though production increased 32%over the previous year,Navistar sites continued to reduce overall greenhouse gas emissions.Scope 1 and Scope 2 GHG emissions were 61,390 and 92,833 tonnes CO2e,respectively.This represent

244、s a 10%overall reduction from 2021 Scope 1 emissions of approximately 79,500 tonnes CO2e and Scope 2 emissions of 92,600 tonnes CO2e.Company facilities reduced Scope 1 GHG emissions more than 22%in 2022,while Scope 2 slightly decreased by less than 1%over 2021.It is noteworthy that the former Melros

245、e Park engine plant was fully decommissioned and demolished in early 2022,accounting for a significant reduction in Scope 1 from less natural gas once used to heat the former manufacturing campus.Though some operations were transferred to San Antonio,Texas,the site natural gas use is minimal in comp

246、arison.Given the 32%increased production in 2022,the sites ability to decrease overall GHG emissions demonstrates the continuous improvement commitment.Navistar bases its calculations on the World Resources Institute GHG Protocol for the accounting and reporting of GHG emissions and includes in the

247、inventory all corporate-wide associated emissions where there is operational control.For Scope 1,data is collected on fuels used or dispensed as well as all combustion sources for facilities and company-owned vehicles.Once data is collected,Navistar applies appropriate emissions factors for the spec

248、ific fuel used to calculate the emissions.For Scope 2,information is derived from invoicing data from energy providers to which appropriate source emissions factors are applied,by region or country.Navistar facilities use grid-supplied power,which is generally comprised of a mix of renewable,fossil

249、fuel and nuclear power.A continual steady increase in renewable generated power had been seen each year in the past and the proportion of nuclear-generated power also increases as fossil fuel-generated grid electricity use slowly diminishes across the U.S.Navistar did not purchase market-based renew

250、able certificates in 2022.10%Scope 1&Scope 2 overall GHG reduction from our 2021 emissionsSCOPE 1 AND SCOPE 2 EMISSIONS34NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDECARBONIZATION During 2022,Navistar calculated its full carbon footprint,including upstream and dow

251、nstream Scope 3 value chain emissions for 2021.This is a key part of the SBTi effort.The total carbon footprint in 2021 was estimated to be approximately 61 million metric tons CO2e.Of this,approximately 97%was from the use of products.Navistar calculated this using methods consistent with those est

252、ablished by GHG Protocol.The use of products represents an estimation of the lifetime emissions from each vehicle produced and sold in 2021.The next highest emissions comes from those related to the purchased goods and services,which constitutes almost 2%of Scope 3 emissions.In 2022,all Navistar veh

253、icles and engines were certified to the first tier of Phase 2 of the U.S.Environmental Protection Agencys(EPA)and the National Highway Traffic Safety Administrations(NHTSA)rules governing GHG emission controls,which originally came into effect in 2021.According to the EPA,the Phase 2 rules will achi

254、eve GHG reductions of approximately 25%for tractors and 24%for vocational vehicles compared with the 2017 Phase 1 standards when fully implemented in 2027.The rules apply throughout the product line to both engines and vehicles.In order to certify each engine,the Company is required to use the GHG E

255、mission Model developed by the EPA.This software creates a model of each products GHG emissions,which is then compared with a GHG emission and fuel economy standard across vehicle or engine categories.Note that the methodology EPA uses in certification differs in material ways from the methods used

256、to calculate Scope 3 emissions.In 2023,EPA proposed even more stringent emissions standards modifying those in 2027 and establishing new standards through 2032.EPA expects those emission standards to result in electrification of greater than 50%of the national fleet when fully implemented.SCOPE 3 EM

257、ISSIONS96.75%Emissions:59,087Use of Sold Products2%Emissions:1,143Purchased Goods and Servicesg1%Emissions:29Fuel and Energy Related Activities 1%Emissions:152Upstream Transportation1%Emissions:175End-of-Life Treatment of Sold Products1%Emissions:5Waste Generated in Operations1%Emissions:285Capital

258、Goods1%Emissions:9Business Travel (Flights and Rental Cars)1%Emissions:28Employee CommutingFor a list of Navistars emissions as well as footnotes f and g see Impact section.2021 Scope 3 Footprint(in 1000 t CO2e)f35NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDECARBO

259、NIZATION ZERO-EMISSIONS VEHICLESNavistar is focused on providing customers insights about the process and benefits of battery electric vehicle adoption.In 2022,Navistar conducted a multi-stop tour throughout North America and emphasized its strategy to support customers around electric vehicle educa

260、tion and adoption.Navistar started the year 2022 with the NEXT Experience Trailer to highlight our commitment to lead zero-emissions technology adoption for commercial vehicles.This educational trailer provided industry stakeholders the opportunity to learn more about the process and benefits of ele

261、ctric vehicle adoption.The multi-stop tour throughout North America featured scheduled stops at more than 50 International and IC Bus dealers and select trade shows.In the course of 2022,the NEXT eMobility Solutions Teams transformed into the Zero Emissions Team of Navistar.The Zero Emissions Team a

262、ssumed the responsibility for success in supporting the integration and customer journey of zero emissions throughout the organization,leveraging TRATON Group as well as strategic partnerships that will allow us to scale and increase speed to market.The goal was to create simplicity and ease of doin

263、g business for customers to plan,execute,and optimize zero-emissions vehicles and investments for the entire lifecycle.Key was understanding that the whole ecosystem matters,and that e-mobility goes beyond the vehicles to support customers in their EV journeys.In 2022,we leveraged our five-step appr

264、oach setting out our strategy to tackle the shift to e-mobility.This approach was updated in 2023,refining the approach to break down the complexities of zero-emissions vehicles and simplifying our customers journey to cost-effective,successful implementation.Navistar also announced in 2023 the newl

265、y formed relationship with integrated infrastructure solutions partner Quanta Services,Inc.,a leading infrastructure and energy transition solutions provider.In this collaboration,Navistar will provide International Truck and IC Bus customers with a comprehensive vehicle and charging infrastructure

266、solution that enables fleets to implement battery-electric vehicles quickly and efficiently.Our approach with continued involvement from International Truck and IC Bus includes consultation to installation and beyond,reassuring customers and minimizing their stress differentiating Navistar as a trus

267、ted brand with exemplary customer service.CONSULTINGFinding the best way forwardOur discovery workshops dive into a fleets electrification needs and concerns,building a customized EV roadmap for success.OUR EV ROADMAP PATH TO A SEAMLESS TRANSITIONOur dealers and trusted aeasy steps:CHARGINGLaying th

268、e groundworkWe assess the placement of hardware and infrastructure,finding the best ways to support a customers vehicle charging and uptime.DEPLOYMENTBringing it all togetherWe ensure charging locations,staff,and remote diagnostics are prepared for the electric fleet to hit the road.36NAVISTAR SUSTA

269、INABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDECARBONIZATION Navistar launched the International eMVTM Series in August 2021.Some eMV Series electric vehicle deployments in 2022 were:Terex Utilities,a manufacturer of materials processing machinery and aerial work platforms,announ

270、ced the industrys first all-electric bucket truck mounted on an eMV Series chassis.Navistar partnered with Morgan Truck Body,LLC to release a prototype dry freight cargo van body integrated on an eMV Series chassis.Penske Truck Leasing became Navistars first U.S.eMV Series customer,purchasing multip

271、le vehicles to continue its commitment to zero-emissions technology.Penske integrated the EVs into its fleet to provide real-world feedback regarding performance.Navistar delivered the vehicles in April 2022.Canadian utility provider ENMAX purchased two eMV Series trucks to join its fleet of mobile

272、command centers as part of a pilot program.Altec,a truck equipment manufacturer(TEM)serving the utility and contractor markets,took delivery of an eMV Series chassis upfitted with an Altec TA-60 body.The first IC Bus Electric CE Series school buses were delivered in May 2021.In 2022,IC Bus supported

273、 dealers in educating customers on funding opportunities for the U.S.Environmental Protection Agencys(EPA)Clean School Bus Program.The federal rebate program allotted$5billion over the next five years to replace current school buses with alternative fuel or electric vehicle models.Through customer e

274、ducation and grant writing support,IC Bus helped more than 230 school districts many of which are in high-need or low-income areas take their first step toward electrification.IC Bus began educating dealers in early 2022 on their critical role in supporting the EV transition.Dealers have aided custo

275、mers in funding opportunities,charging infrastructure,route analysis and overall EV education.In August 2022,International dealer West Michigan International announced the grand opening of Michigans first public electric commercial vehicle charging station at its Kalamazoo location.Located directly

276、off Interstate 94,one of the largest freight corridors in the Midwest,the new electric vehicle(EV)charging station is optimized for commercial vehicle charging and will provide fleets the ability to charge larger vehicles,including Class 8 electric trucks.The DC fast charger features two 24-hour cha

277、rging hookups.The chargers at the West Michigan International in Kalamazoo were installed with support from Navistars charging partner,InCharge.37NAVISTAR SUSTAINABILITY REPORT 2022NAVISTAR IC Bus CE Electric School BusMotor power:max.250 kWBattery capacity:up to 315 kWhRange:up to 200 milesProducti

278、on launch:2021NAVISTAR International eMVMotor power:max.250 kWBattery capacity:up to 210 kWhRange:up to 135 milesProduction launch:2021IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDesign PhilosophyThe clean sheet design of the S13 Integrated Powertrain sets an industry standard for efficiency,profita

279、bility and sustainability.The components of the S13 Integrated Powertrain,which comprise the S13 Engine,the T14 Transmission and the Dual Stage Aftertreatment system,were all considered at the beginning and throughout the development process.This ensures the S13 Integrated Powertrain makes significa

280、nt efficiency gains while maintaining superior performance.The S13 Integrated Powertrain leverages global scale across the TRATON Group and supports modularity as a core principle.Modularity allows the TRATON Group to utilize shared research and development,and paring that development down to the be

281、st,most essential components that work in standardized interfaces across products.This approach combines components in different ways to achieve a high degree of customization with fewer components and meet the unique needs of customers in every market.On a global scale,modularity optimizes our prod

282、uction footprint,increases purchasing power,creates manufacturing efficiencies,and reduces the number of parts that we need to stock for production and aftermarket support.Performance Benefits Internal combustion engines are an important part of customers businesses.The International S13 Integrated

283、Powertrain demonstrates Navistars commitment to industry-leading fuel economy as part of the companys bridge strategy toward sustainable mobility.The system optimizes efficiency without sacrificing performance.Advanced fuel efficiency and performance is achieved through combustion efficiency and a r

284、eduction of friction and pumping losses.This equates to a more fuel-efficient engine with less greenhouse gas emissions.With the S13 Integrated Powertrain,Navistar offers its most efficient combustion engine solution.Paired with the International LT Series models aerodynamics package,the S13 Integra

285、ted Powertrain delivers up to 15%improvement on fuel economy compared to the first-generation International A26 engine mated with a 12-speed Eaton Endurant HD automated transmission.When compared to the A26 engine,this equates to a significant reduction in fuel consumption.The S13 Engine was develop

286、ed from the ground up,using select catalytic reduction(SCR)technology as the only emissions reduction technology.This is enabled by the advanced,dual stage aftertreatment that provides great NOx conversion efficiency.The S13 Engine has no exhaust gas recirculation(EGR)cooler and flows 100%of the exh

287、aust to the turbocharger in normal engine operating conditions.This process delivers improved efficiency and engine performance.Eliminating the recirculation of exhaust gas ensures a more complete fuel burn and allows cleaner air to enter the combustion chamber on the intake cycle to mitigate soot b

288、uildup.The S13 Engine enables use of simpler,more efficient fixed geometry turbo and combustion efficiency is further improved with a 23:1 compression ratio.Because cooled EGR was eliminated from the combustion process,less soot and particulate matter are generated.This cleaner combustion cycle allo

289、ws for extended service intervals and eliminates the diesel oxidation catalyst as well as the need for an active regeneration cycle.The Dual Stage Aftertreatment system saves fleets time and fuel.Shifting logic and integrated software controls for the T14 Transmission maximize efficiency and perform

290、ance resulting in gear shifting that is perfectly matched to engine revolutions.OnCommand Connection,Navistars connected services platform,comes standard and with over-the-air programming.The S13 Integrated Powertrains predictive capabilities help fleet owners and service managers stay ahead of pote

291、ntial service needs.International 360,Navistars service communications tool designed to accelerate the repair process and streamline dealer communications,is also an available option to customers.To manufacture the S13 Integrated Powertrain,Navistar is in the process of significantly expanding and t

292、echnologically upgrading its Powertrain Plant in Huntsville,Alabama with a total$205 million investment.EFFICIENT POWERTRAINIn August 2022,Navistar unveiled the International S13 Integrated Powertrain during an exclusive live event held for dealers,customers,and industry press at the Las Vegas Motor

293、 Speedway.For more than five years,Navistar and the TRATON Group invested heavily in a common base engine,transmission and aftertreatment system.DECARBONIZATION38NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETDECARBONIZATION ENERGY USAGEFor Navistars Scope 1 and Scope

294、 2 carbon emissions,the largest portion of emissions are driven by Scope 2 emissions:those related to purchased energy usage.Concentrating on energy usage has two benefits:1)reduced energy usage directly reduces costs;and 2)increased efficiency also directly reduces carbon emissions both from our op

295、erations and upstream.Electrical energy usage,therefore,continues to be a key area of focus.Our production increased by 32%in 2022,yet the purchased utility energy used by our facilities increased only slightly,less than 2%over 2021;evidence of the energy efficiency gains and reduction of wasted ene

296、rgy in our operations.The significant increase in production with relatively static energy usage is evidence of efficiency.In addition to increased production,we saw manufacturing infrastructure expansion,also presenting an opportunity to increase efficiency.Our Powertrain Manufacturing Plant in Hun

297、tsville,Alabama expanded in 2021,adding 110,000ft2 of new manufacturing space and equipment.Our new manufacturing operations in San Antonio,Texas,are increasing in production,while the Escobedo,Mexico,facility continues to undergo major paint upgrades and site support expansions.Thus,our sites conse

298、rved energy during this manufacturing space expansion.Our energy management strategy has many elements.We perform energy audits and encourage our sites to conduct informal“treasure hunts”at our facilities,seeking improvement opportunities.In addition,our Springfield,Ohio manufacturing facility partn

299、ered again with the Industrial Assessment Center at the University of Dayton,Ohio to perform energy reviews under sponsorship of the U.S.Department of Energy(DOE).The team also completed ISO 50001-ready energy management standard implementation training with the DOE in March 2023.The ISO 50001 energ

300、y standard elements are expected to be incorporated into the corporate ISO programs planned for 2023-2024.Navistars relationship with the DOEs Better Buildings,Better Plants program continues.In 2021,Navistar committed to its second voluntary DOE goal to further reduce energy intensity through the D

301、OE national partnership,pledging an additional 20%by 2030(1.7%reduction per year),using the 2018 baseline.The DOE tracks our progress toward this voluntary goal after analyzing our data each year.Four of our largest U.S.facilities are included:our manufacturing facilities in Springfield,Huntsville a

302、nd Tulsa as well as our World Headquarters offices in Lisle.It does not yet include our new San Antonio facility.In 2022,the data indicated that we achieved 2%annual improvement in efficiency.This brings the total improvement to 5.7%from the new 2018 baseline year.The data was slightly adjusted by t

303、he DOE for 2022 to reflect more accurate predictors and improved analysis at two sites.Navistar adopted this energy intensity metric,including our Escobedo,Mexico facility,on a year-over-year basis,as one element of our 2023 annual incentive metric,representing a company-wide sustainability commitme

304、nt to using energy responsibly.39NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETNavistars second area of strategic focus for environmental sustainability is circular business.A circular business practice is one that focuses on lifecycle impacts,resource use reduction

305、and waste minimization.lifecycle impacts|resource use reduction|waste minimizationCircularity not only saves raw resources from being used in the production of a new product,but uses less energy,causes less emissions and creates less waste than a new product.Navistar is early in its journey toward a

306、 circular business model but is committed to moving in that direction.This model supports decarbonization as a strategic focus area as well as conserving resources.As this progress continues,Navistar intends to find more ways to design products so circular business practices are built-in from the in

307、ception.Navistar has been making strides to improve waste management practices minimizing waste generation,reusing goods and packaging,remanufacturing parts,and strengthening our recycling program.Navistar is exploring solutions for cost savings,selecting proper waste handling equipment,and setting

308、metrics and sustainability goals.Navistar is actively looking for ways to eliminate more waste and pollution from packaging and manufacturing.It is fair to say Navistar is at the beginning of its circular business journey,but remains committed to it and can see the opportunities it affords.A CIRCULA

309、R MODEL LOOKS FOR WAYS TO REUSE,SHARE,REFURBISH,REMANUFACTURE AND RECYCLE PARTS AND MATERIALS.ENERGY ANDMATERIAL INPUTPRODUCTION/DISTRIBUTIONUSECOLLECTIONREMANUFACTURING/REFURBISHINGREUSING/REPAIRING/MAINTAININGRECYCLINGRECYCLINGDISPOSALCIRCULAR BUSINESS40NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRES

310、PONSIBILITYINTRODUCTIONPEOPLEPLANETIn 2022,total waste generation increased by 47.3%compared to waste generated in 2021,mainly due to an increase in vehicle production and waste management in the wake of the COVID-19 pandemic.Similarly,the total waste generation from manufacturing facilities,includi

311、ng the San Antonio Manufacturing Plant,increased in 2022 by 66.7%compared to 2021.Additionally,total waste from all manufacturing facilities per vehicle increased by 26.1%compared to 2021.We aim to find ways to reduce the waste generation going forward.Navistar refurbishes and repurposes its IT equi

312、pment internally wherever possible.If the equipment cannot be refurbished or reused,it is sent to R2 Certified recyclers to maintain a low impact on the environment.In 2022,Navistar reused 46%of IT equipment through its certified recycling contractor.This effort resulted in 23,216 pounds of e-waste

313、processed and a reduction of approximately 32,361 pounds of GHG emissions as compared with disposal,as estimated by our recycling contractor.CIRCULAR BUSINESSREDUCEREUSE41NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCIRCULAR BUSINESSREMANUFACTURINGThe energy and emi

314、ssions impacts of a remanufactured vehicle part can be on average as low as 35%compared with a new part and the waste impacts can be less than 10%compared with a new vehicle part according to a 2018 United Nations Environment Program report.1 As a result,remanufacturing can have a significant impact

315、.Navistar sells and distributes remanufactured parts under the ReNEWed and Fleetrite brands,with approximately 3,000 different parts regularly remanufactured.Our remanufacturing program is based on a system where customers return a used component,known as core,which is then remanufactured into a pro

316、duct that meets the identical specifications of a new part.Certain parts can be remanufactured multiple times.Navistar utilizes four central core return facilities located in Springfield,Missouri;Franklin,Indiana;Quertaro,Mexico;and Hannon,Ontario which gives us an infrastructure designed to make it

317、 easy for dealers and customers to return used truck parts.The core is then distributed to various partner companies that remanufacture the parts to original specifications.The result is a like-new part option for the customer and can carry significant emissions,energy and waste advantages compared

318、with a completely new part.The returned parts are used in our remanufacturing programs or for recycling if they cannot be remanufactured.This system is flexible,and newly eligible parts can be brought into the system.One way Navistar was able to react to supply chain constraints,including those for

319、microchips,was to expand the parts that could be remanufactured,offering a source of replacement parts in short order to help offset supply chain issues.We are working on programs to expand remanufacturing opportunities.Our ambition is to have at least 20%of our parts revenue come from remanufacture

320、d parts.This makes sense both commercially and on the impact of our activities.1 UNEP,Redefining Value,The Manufacturing Revolution:Remanufacturing,refurbishment repair and direct reuse in the circular economy(2018),Summary for Policymakers.AMBITION:20%of parts revenue to come from remanufactured pa

321、rtsNavistar Core CentersSpringfield,MissouriFranklin,IndianaHannon,OntarioQuertaro,Mexico42NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCIRCULAR BUSINESSRECYCLEIn 2022,64%of all waste generated was recycled,compared to 67%in 2021 which represents a slight decrease l

322、ikely related to the impacts of the COVID-19 pandemic affecting waste segregation and recycling.We have programs to recycle cardboard,pallets and other packaging material.We aim to shape the circular economy,continuously improve toward our goal of a 75%recycling rate,and create a less resource-inten

323、sive company.We aim to continuously improve toward our goal of a 75%recycling rate.43NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETCIRCULAR BUSINESSCONSERVING WATER RESOURCESNavistar relies on water resources supplied by third parties for 99%of its water needs.We use

324、 water for general facility activities such as drinking,sanitation,building heating and cooling,and industrial purposes such as cooling,washing and paint operations.As part of our environmental training programs,we educate our employees on the importance of conserving water resources and continually

325、 seek ways to reduce our water use.In 2022,we used 0.51 million cubic meters of water in our operations,a 9.1%increase from 0.47 million cubic meters in 2021.Our overall water usage has been trending lower during the years prior to the start of the pandemic but increased slightly compared to 2021.Ho

326、wever,the total water use per vehicle decreased due to improved efficiency at higher production levels.Within our manufacturing locations,53%of the water withdrawal in 2022 was from our plants in Escobedo,Mexico,and Santo Amaro,Brazil(our facility in Santo Amaro,Brazil,was sold in 2022).The Escobedo

327、 plant gets its water indirectly from the San Juan River in Monterrey,Mexico.These plants are in places where water stress is high because there is greater competition among users for renewable surface and groundwater supplies.We define water stress through the World Resources Institute Aqueduct Wat

328、er Risk Atlas tool.None of the water sources where facilities are located are significantly affected by our water withdrawals as they account for less than 5%of the annual average volume of these water bodies.Furthering our efforts to minimize water use,a pipeline is being planned,which will allow o

329、ur San Antonio plant to utilize gray water from the local utility.Additionally,many of our facilities discharge wastewater to the local wastewater treatment utility.Some of our plants have wastewater pretreatment systems,which bring the wastewater to local standards prior to discharge into the syste

330、m.Our Springfield plant operates its own wastewater treatment plant,fully treating sanitary and industrial wastewaters to applicable EPA standards before returning it to local waters,part of the Mad River Buried Valley Aquifer in Ohio.Our plant in Escobedo,Mexico,is a zero wastewater discharge plant

331、.Escobedo treats all wastewaters at the facility,using the clean water for irrigation to support onsite grass and native vegetation.Our New Carlisle,Indiana,proving grounds,in conjunction with local jurisdictions,invested significantly to expand stormwater retention such that the site is zero-discha

332、rge for stormwater.44NAVISTAR SUSTAINABILITY REPORT 2022IMPACTRESPONSIBILITYINTRODUCTIONPEOPLEPLANETENVIRONMENTAL COMPLIANCEEnvironmental compliance remains a baseline value for us.Our manufacturing facilities are certified by outside auditors to comply with the ISO 14001 environmental management sy

333、stem standard,except for the new San Antonio plant,which is planned to achieve certification in 2024.In addition,we perform internal audits of each of our major facilities for environmental compliance.These audits are led by our corporate Environment and Sustainability office with participation of personnel from other facilities.This cross-plant participation gives us the ability to ensure that be