The 2023 Skoda Auto Sustainability Report provides a comprehensive overview of the Czech carmaker’s updated sustainability strategy, detailing initiatives and advancements across all Environmental, Social, and Governance (ESG) areas.Skoda Auto is dedicated to systematically reducing the environmental impact of its operations. At the same time, the company is committed to enhancing local ecosystems and offering international humanitarian aid, supporting individuals, communities, and regional development in Mladá Boleslav, Vrchlabí, and Kvasiny, where its sites are located. In addition to these efforts, the report includes insights into corporate governance, corporate culture policies, and the implementation of integrity tools.
continued below
Karsten Schnake, Skoda Auto Board Member for Procurement and Sustainability Board Representative, said, “This year marks the first time we are publishing our Sustainability Report alongside our Annual Report. This approach standardised our reporting cycles and drew more attention to our sustainability targets and social commitments. Moreover, it emphasises the importance of consistent, transparent, and detailed reporting on key ESG topics to all stakeholders.”
Green production:Skoda Auto is making significant progress towards achieving carbon-neutral production at its three Czech plants by 2030. In autumn 2023, the company commissioned a rooftop solar power system at its main plant in Mladá Boleslav. This system is capable of producing over two gigawatt hours (GWh) of emission-free electricity annually, covering an area exceeding 10,000 m2.
To accurately assess the environmental footprint of its manufacturing processes, Skoda Auto has introduced a key metric known as the ‘Reducing the Environmental Impact of Production (UEP)’ indicator. This is designed to measure reductions in energy use, CO2 emissions, water usage, waste generation, and the emission of volatile organic compounds (VOC) per manufactured vehicle. This metric confirms that in 2023, water consumption per car in Czech plants has decreased by 37.7% compared to 2010 and energy consumption has decreased by 38.8% to 1.38 MWh over the same period. By 2025, Skoda Auto aims to lower the overall UEP by 52.5% compared to 2010.
Green product: Increasing the use of recycled materials
In line with circular economy principles and through close collaboration with its suppliers, Skoda Auto is systematically increasing the use of natural, recycled, and recyclable materials in its vehicles. For example, in the new Superb, all textile materials on the seats and door trim are made from 100% recycled polyester. The ice scraper in the tank cap and the umbrella in the door, which the Superb was the first to feature, are now also made from sustainable materials. Skoda Auto plans to progressively increase the ratio of recycled materials in future models. Starting in 2025, the company aims to double the amount of recycled plastics to approximately 40 kg of net material weight per vehicle
Green retail: As a member of the Volkswagen Group, Skoda Auto is engaged in the goTOzero retail initiative, which serves as a roadmap for decarbonising the sales and service network. By 2030, Skoda Auto aims to decrease the carbon footprint of its authorised sales and service networks by a minimum of 30% relative to 2020 levels. Specifically, the strategy focuses on maximising waste recovery, reducing energy consumption, and using rainwater.
The S-Rating system: A framework for responsible sourcing
In its collaboration with suppliers, Skoda Auto employs the S-rating system that defines mandatory framework conditions across critical areas, including environmental protection, human rights, labour rights, transparent business practices, fair market conduct, and the integration of sustainability criteria into organisational operations and processes. In 2023, 90% of Skoda Auto’s turnover (based on the past 12 months’ total turnover) was achieved with suppliers that attained the highest sustainability rating.
Join the community of 2M+ industry professionals
Subscribe to our newsletter to get latest insights & analysis.
Download ETAuto App
- Get Realtime updates
- Save your favourite articles