Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economics
• Environment
• Social Area

Environmental Achievements

• Reduced CO2 emissions per vehicle produced by 8% between 2010 and 2011.
• Reduced fresh water consumption by 10%, waste volumes by 7%, and chemical oxygen demand by 5%.
• Increased the percentage of recyclable waste due to improved waste sorting.
• Reduced hazardous waste per vehicle produced by about 16% in one year.
• More than 95 tonnes of unusable material cleared from service partners’ warehouses in the Czech Republic, with 88.53% of this material utilized.

Social Achievements

• Achieved low employee turnover rate (3.1% in 2011) and above-average length of service (12.5 years).
• Employee survey showed a further increase in motivation (93% participation).
• Lowest number of occupational accidents in 20 years.
• Won the “Employers without Barriers” and “Best Full-Responsibility Enterprises” awards for promoting employment of people with disabilities.
• Supported numerous social and cultural projects in Czech Republic, Germany, India, and Slovakia.

Governance Achievements

• Introduced a binding Code of Conduct for all employees in 2011, revised in 2012.
• Combined risk management, compliance, and corporate governance activities into a new department.
• 90% of relevant employees completed an online corruption prevention course in 2012.
• No reports of incidents leading to conflicts of interest in 2011.

Climate Goals & Targets

Environmental Challenges

• Global financial and debt crisis leading to insecurity and uneven economic development.
• High national debt in some European countries.
• Uneven development in global automobile markets with strong competition.
• Minimizing environmental impact of vehicle production.
• Reducing the number of working days lost due to illness, particularly among older employees.

Mitigation Strategies

• Implemented a growth and internationalization strategy focusing on growth markets.
• Improved cost situation and increased net liquidity.
• Continuous improvements in environmental protection firmly entrenched in corporate policy and strategy.
• Implemented voluntary prevention programs (ŠKODA Check-up plan) focusing on healthy lifestyle.
• Ergonomics program to improve work conditions and reduce physical strain on employees.

Supply Chain Management

Responsible Procurement

• Sustainability requirements for suppliers
• Early warning system for minimizing risk
• Transparent procurement process
• Supplier monitoring and development process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (Environmental Management System)

Sustainable Products & Innovation

• GreenLine models
• GreenTec models
• Green E Line models
• ŠKODA Citigo with fuel-efficient engines

Awards & Recognition

• Czech Republic’s most admired company
• Numerous awards for ŠKODA models and the company itself

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social

Environmental Achievements

• Reduced environmental impact of production by 45.8% by the end of 2016 compared to 2010 (targeting 50% by end of 2018)
• Reduced CO2 emissions by 18% between 2010 and 2015 (planning another 18% reduction between 2015 and 2020)
• More than 80% of ŠKODA dealerships worldwide renovated with improved environmental performance (consuming half the energy of previous designs)

Social Achievements

• Created 2,910 new jobs in 2016
• Employee satisfaction index remained high at 84%
• Implemented Z.E.B.R.A. idea management, saving the company CZK 302.4 million in 2016

Governance Achievements

• Implemented a mandatory computer-based Code of Conduct training program for employees and Board of Management members
• Preventive compliance approach to create a corporate culture that avoids potential infringements of the law

Climate Goals & Targets

Environmental Challenges

• Highly competitive labor market in the Czech Republic due to low unemployment, aging population, and skills mismatch
• European authorities' questions about software in approximately 1.1 million ŠKODA vehicles (addressed through a servicing campaign)

Mitigation Strategies

• HR strategy focused on attracting, developing, and retaining motivated and competent employees
• Servicing campaign to modify affected vehicles to comply with NOx emission limits

Supply Chain Management

Supplier Audits: Ongoing audits and questionnaires

Responsible Procurement

• Volkswagen Group Requirements regarding Sustainability in its Relationship with Business Partners

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 CITIGO G-TEC, ŠKODA OCTAVIA G-TEC, ŠKODA OCTAVIA COMBI G-TEC

Awards & Recognition

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

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Economy/Governance

Environmental Achievements

• Vrchlabí plant became CO2-neutral in 2020.
• No waste from production processes sent to landfills since 2019.
• Reduced production environmental impact in Czech plants by 51% compared to 2010.

Social Achievements

• #SKODAAUTOpomaha initiative provided mobility support during the COVID-19 pandemic.
• Donated 100 Octavia Combis and other vehicles to social and medical aid services.
• Donated CZK 100 million for distance education.
• Signed the European Diversity Charter in 2019 and became a Golden Signatory in 2020.

Governance Achievements

• Implemented Together4Integrity program for integrity and compliance.
• Published updated ŠKODA AUTO Group Code of Conduct in 2019.
• Developed a Compliance strategy in 2019 (updated in 2020).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused a 39-day shutdown of Czech production sites and collapse of sales channels.
• Supply chain disruptions due to the COVID-19 pandemic and the transition to e-mobility.
• Failure to meet CO2 emission targets in 2020 due to COVID-19 impact and battery shortages.

Mitigation Strategies

• Received compensation from the Antivirus program to support employee retention.
• Implemented supply chain risk management to safeguard material and parts flow.
• Created a provision in 2020 to cover fees for excess emissions.
• Further optimizing internal combustion engine fleet and developing zero-emission electric vehicles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Rating (S-Rating) introduced in 2019.
• Sustainability rating on par with quality, logistics, and technology development as procurement criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

The report maps company activities to specific SDG targets, highlighting contributions in areas such as traffic safety, technical education, gender equality, water management, renewable energy, economic growth, sustainable production, climate change mitigation, and integrity.

Sustainable Products & Innovation

• CITIGOe iV, ENYAQ iV, SUPERB iV, OCTAVIA iV, CNG vehicles

Awards & Recognition

• Responsible Foreign Investor award (2019)
• Top Responsible Company Helping the Neighbourhood (2019, 2020)
• Top socially responsible company in the Czech Republic (2019, 2020)