Climate Change Data

Škoda Auto a.s.

Climate Impact & Sustainability Data (2015-01 to 2016-12, 2021-2022, 2023)

Reporting Period: 2015-01 to 2016-12

Environmental Metrics

Total Energy Consumption:1.58 MWh/vehicle in 2016
Water Consumption:1.92 m³/vehicle in 2016
Waste Generated:0.68 kg/vehicle in 2016

ESG Focus Areas

  • Economy
  • Environment
  • Social

Environmental Achievements

  • Reduced environmental impact of production by 45.8% compared to 2010 by the end of 2016 (target was 45%).
  • Reduced CO2 emissions by 18% between 2010 and 2015.
  • Reduced water consumption in car production by 30% compared to 2010.

Social Achievements

  • Created 2,910 new jobs in 2016.
  • Improved employee satisfaction index to 84% in 2016.
  • Implemented Z.E.B.R.A. idea management, saving CZK 302.4 million in 2016.

Governance Achievements

  • Maintained compliance with the Code of Corporate Governance based on OECD principles.
  • Implemented mandatory Code of Conduct training for almost all relevant employees.
  • Applied a preventive compliance approach to avoid legal infringements.

Climate Goals & Targets

Long-term Goals:
  • ŠKODA AUTO: TOP employer in the automotive sector in Central and Eastern Europe by 2025.
Medium-term Goals:
  • Sales of 2 million vehicles worldwide by 2025.
  • Five models with electric drive by 2025.
  • Increase the proportion of women at all levels of management by 0.7% per year.
Short-term Goals:
  • Reduce environmental impact of vehicle production by 50% compared to 2010 by the end of 2018.
  • Improve customer satisfaction through employee training at the Service Training Centre by 2018.
  • Introduce personnel development in leadership and management to the same standards worldwide by 2018.

Environmental Challenges

  • Highly competitive labor market in the Czech Republic due to low unemployment and an aging population.
  • Mismatch between qualifications of graduates and employers' needs.
  • The Diesel Issue: Questions raised by European authorities about software in approximately 1.1 million ŠKODA vehicles.
Mitigation Strategies
  • Modified HR strategy to attract, develop, and retain motivated employees.
  • Initiated a servicing campaign to modify the software in affected vehicles to comply with NOx emission limits.
  • Implemented various measures to improve employee health and ergonomics.

Supply Chain Management

Supplier Audits: Ongoing audits and questionnaires.

Responsible Procurement
  • Sustainability questionnaire for potential suppliers.
  • Contractually mandated requirements focusing on environmental protection, employee rights, transparent business relationships, and fair behavior.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001:2015, ISO 50001:2011, ISO 9001:2015

Sustainable Products & Innovation

  • ŠKODA SUPERB with partially electric drive (planned for early 2019)
  • All-electric ŠKODA models (planned for 2020)

Awards & Recognition

  • TOP Employer for university students (2016)
  • Czech 100 Best award (16 consecutive years)

Reporting Period: 2021-2022

Environmental Metrics

Scope 1 Emissions:400,360 tCO2e in 2022 (CZ plants)
Scope 2 Emissions:0 tCO2e in 2022 (CZ plants)
Scope 3 Emissions:20,220,323 tCO2e in 2022
Renewable Energy Share:35% in 2022 (CZ production)
Total Energy Consumption:1163 GWh in 2022 (CZ production)
Water Consumption:1,350,084 m³/year in 2022

ESG Focus Areas

  • Climate Change
  • Decarbonization
  • Circular Economy
  • Education
  • Mobility
  • Volunteering & Employee Engagement
  • Well-being
  • Diversity
  • Integrity
  • Compliance
  • Risk Management

Environmental Achievements

  • Increased the percentage of renewable energy at Škoda Auto locations to around 35% in 2022.
  • Achieved zero waste to landfill from production in 2020, maintained in 2021 and 2022.
  • Reduced water consumption per car produced by 29.3% since 2010.
  • Reduced energy consumption in CZ production from 1.89 MWh/vehicle in 2021 to 1.68 MWh/vehicle in 2022.
  • Reduced CO₂ emissions per car in 2022 to 547 kg/car (50.4% reduction compared to 2010).

Social Achievements

  • Donated CZK 8.5 million to tornado-damaged regions in South Moravia in 2021.
  • Provided logistical support and financial aid exceeding CZK 20 million to Ukraine in 2022.
  • Launched educational integration programs for Ukrainian refugees in the Czech Republic.
  • Employee satisfaction index increased to 88.1% in 2022.
  • Supported barrier-free mobility through the Škoda Handy project and grant programs.

Governance Achievements

  • Established an independent external Sustainability Council in 2021.
  • Implemented the Together4Integrity programme.
  • Achieved over 99% completion rate for Code of Conduct training.
  • Implemented a comprehensive Compliance Management System (CMS).

Climate Goals & Targets

Long-term Goals:
  • Become a net CO₂ neutral company by 2050.
Medium-term Goals:
  • Achieve carbon-neutral energy consumption in manufacturing by 2030 (Czech production).
  • Reduce fleet exhaust CO₂ emissions by 50% compared to 2020 by 2030.
  • Reduce the Decarbonisation Index (DCI) by 40% compared to 2018 by 2030.
Short-term Goals:
  • Reduce the production impact on the environment (UEP) by 52.5% compared to 2010 by 2025.
  • Achieve a 70% BEV share of deliveries in Europe by 2030.

Environmental Challenges

  • Russian-Ukrainian conflict
  • Covid-19 pandemic
  • Supply chain disruptions (semiconductors)
  • Volatile energy prices
  • Water scarcity in Kvasiny plant
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented energy efficiency measures
  • Developed sustainable solutions for industrial water supply
  • Constructed large retention tanks for water management
  • Implemented the NEW PROCUREMENT programme with sustainability criteria.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for Business Partners
  • S-Rating system for supplier sustainability assessment
  • Business Partner Due Diligence (BPDD) check for selected suppliers
  • NEW PROCUREMENT programme

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Flood risk
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Transition to electromobility

Reporting Standards

Frameworks Used: GRI (largely based on), ESRS (gradually integrating)

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: TÜV NORD

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 16
  • Goal 17

Detailed explanation of contributions to SDGs provided in Annex 2.

Sustainable Products & Innovation

  • Škoda Enyaq with recycled materials
  • Development of new sustainable materials (e.g., crushed sugar beet, fabrics from recycled plastic bottles)

Awards & Recognition

  • Top 10 in Czech ESG rating
  • Award in TOP Responsible Company 2022 competition

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:364,974 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:25,228,518 tCO2e/year
Renewable Energy Share:41%
Total Energy Consumption:1,193,208 MWh/year
Water Consumption:1,485,184 m3/year

ESG Focus Areas

  • Decarbonization
  • Circular Economy
  • Preserving local ecosystems
  • People and Communities
  • Diversity
  • Integrity and Compliance
  • Risk Management
  • Sustainable Business Relations

Environmental Achievements

  • Installed photovoltaics and started transforming its heat-production plant in Mladá Boleslav from coal to 100% biomass.
  • Achieved zero landfilled waste from production in the Czech Republic.
  • Reduced specific water consumption per manufactured car by 37.7% since 2010.
  • Increased the share of renewable sources in total energy consumption to 41% in 2023.
  • Introduced 40 kg of recycled plastics in new BEV models starting from 2025.

Social Achievements

  • Exceeded its target with 18.3% women in management.
  • Launched Škoda Social Week, connecting employees with social and health service providers.
  • Contributed CZK 103.8 million to the Škoda Auto Endowment Fund.
  • Implemented the Together for Integrity (T4I) project, strengthening commitment to integrity and compliance.
  • Established a new internal system for submitting notifications of possible illegal conduct.

Governance Achievements

  • Completed the Together for Integrity (T4I) project.
  • Established a new internal system for submitting notifications of possible illegal conduct.
  • Achieved 90% of turnover realized with suppliers with an A rating for sustainability.

Climate Goals & Targets

Long-term Goals:
  • Net-Zero CO₂ by 2050
Medium-term Goals:
  • Reduce the Decarbonisation Index (DCI) by 40% compared to 2018 by 2030
  • Reduce fleet exhaust CO₂e emissions by 50% compared to 2020 by 2030
  • Increase the share of electric vehicles sold in Europe to >70% by 2030
Short-term Goals:
  • Reduce the Environmental Impact of Production (UEP) by 52.5% compared to 2010 by 2025
  • Increase the share of recycled plastics in new models to 40 kg by 2025

Environmental Challenges

  • Transitional risks associated with climate change (regulatory changes, market shifts)
  • Physical risks related to climate change (water scarcity, flooding)
  • Incomplete, incorrect, or unverified data for reporting
  • Late or missing data for reporting
  • Risks in deeper supply chain linkages related to human rights
Mitigation Strategies
  • Accelerating transition to fully electric cars (six new electric models by 2030)
  • Developing sustainable solutions to reduce water consumption (industrial water supply)
  • Constructing large retention tanks to manage excess water
  • Implementing the “New procurement” programme with increased sustainability criteria
  • Implementing the Human Rights Focus system to respond to serious threats
  • Implementing Business Partners Due Diligence and S-rating for suppliers

Supply Chain Management

Responsible Procurement
  • S-Rating system for sustainability assessment
  • Code of Conduct for Business Partners
  • Business Partner Due Diligence (BPDD)

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy generation

Reporting Standards

Frameworks Used: GRI, ESRS

Certifications: ISO 14001, ISO 50001, ISO 45001

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)
  • Goal 10 (Reduced inequalities)
  • Goal 4 (Quality education)
  • Goal 3 (Good health and well-being)
  • Goal 17 (Partnerships for the goals)

Škoda Auto's initiatives contribute to these goals through its sustainability strategy and various projects.

Sustainable Products & Innovation

  • Škoda Enyaq and Enyaq Coupé (BEV)
  • Škoda Superb and Kodiaq (PHEV)
  • Use of recycled materials in new models