Production
Environmentally Conscious Manufacturing
From CO₂-neutral production at the Vrchlabí site to zero landfill waste at any Škoda plant since 2020, we strive to build cars and components with as little environmental impact as possible, preserving the environment for present and future generations. Our GreenFactory strategy incorporates all activities that promote resource-saving production.
Monitoring the impact of our production
As part of our GreenFactory strategy, we monitor the environmental impact of car production. This is expressed as a percentage indicator (Index for Reducing the Environmental Impact of Production), which encompasses five crucial areas: CO₂ and VOC emissions, energy and water usage, and landfill waste. Our ongoing mission is to improve this indicator, targeting a 52.5% improvement by 2025 compared to 2010.
Carbon-neutral production at all Czech sites by 2030
As a car manufacturer, we’re keenly aware of our responsibility towards climate protection. This is why one of our top priorities is for all our factories in the Czech Republic to be carbon neutral by 2030. Already, up to 90% of the electricity used at the Kvasiny site is from renewable sources, while our Vrchlabí plant achieved carbon neutrality in 2020. Between 2021 and 2023, in cooperation with ŠKO-ENERGO, we built three photovoltaic systems covering an area of over 10,000 m² on the roofs of our main factory in Mladá Boleslav and Škoda Parts Center logistics hub.
Carbon-neutral production at all Czech sites by 2030
As a car manufacturer, we’re keenly aware of our responsibility towards climate protection. This is why one of our top priorities is for all our factories in the Czech Republic to be carbon neutral by 2030. Already, up to 90% of the electricity used at the Kvasiny site is from renewable sources, while our Vrchlabí plant achieved carbon neutrality in 2020. Between 2021 and 2023, in cooperation with ŠKO-ENERGO, we built three photovoltaic systems covering an area of over 10,000 m² on the roofs of our main factory in Mladá Boleslav and Škoda Parts Center logistics hub.
Ecological water management
Recognising water as a vital resource, we have implemented robust water-saving strategies. As of 2023, we’ve reduced water consumption per vehicle produced by 37.7%, surpassing our 2025 target of a 31% reduction compared to 2010 levels ahead of schedule. Our cutting-edge technologies also significantly decrease water use in our paint shops. Saving us €775,000 in 2020 alone, our staff play a vital role in suggesting and developing ideas to save water both at the company and across our dealership network under our GreenRetail strategy.
Zero-waste production
Since 2020, we’ve been materially or thermally recycling all waste produced during production. What would have been sent to landfill is now recycled into high-quality plastic parts or used to generate electricity or heating energy. This is an important step in implementing our GreenFuture strategy and strengthens our commitment to circular economy principles. We also hold our suppliers to these rigorous waste management standards.
Zero-waste production
Since 2020, we’ve been materially or thermally recycling all waste produced during production. What would have been sent to landfill is now recycled into high-quality plastic parts or used to generate electricity or heating energy. This is an important step in implementing our GreenFuture strategy and strengthens our commitment to circular economy principles. We also hold our suppliers to these rigorous waste management standards.
Waste hierarchy
Eco-friendly car body painting
At the heart of our eco-friendly approach to car body painting is the paint shop at our Mladá Boleslav headquarters. 210 g less solvent and 17% less clear lacquer are used per car than at conventional facilities without compromising the quality or durability of the paintwork. What’s more, we’ve installed a state-of-the-art air purification system that uses powdered limestone to reduce particulate pollutants, sustainably ensuring clean and safe air. Furthermore, the paint shop features a system that allows us to reduce emissions of volatile organic compounds (VOCs) created during the painting process by 36%.
GreenLogistics initiatives
Our GreenLogistics strategy focuses on reducing the environmental impact of our transport operations. We’re piloting e-trucks in internal logistics and for transporting batteries, cutting back on emissions. We're increasingly using railways to dispatch cars, and we produce key components like MEB batteries locally to reduce our shipping needs. For shipping, we mostly use reusable and recyclable pallets, handling materials effectively and decreasing logistics waste. We’re also making strides in going digital to minimise paper use.
GreenLogistics initiatives
Our GreenLogistics strategy focuses on reducing the environmental impact of our transport operations. We’re piloting e-trucks in internal logistics and for transporting batteries, cutting back on emissions. We're increasingly using railways to dispatch cars, and we produce key components like MEB batteries locally to reduce our shipping needs. For shipping, we mostly use reusable and recyclable pallets, handling materials effectively and decreasing logistics waste. We’re also making strides in going digital to minimise paper use.
Large-scale investments in solar technologies
To power our way to net zero, we’re turning to renewable energy. Mladá Boleslav is a home to one of the largest photovoltaic roof systems in the Czech Republic. This system is made up of more than 5,400 photovoltaic modules and we expect them to generate more than 2 GWh of emission-free electricity annually. The Kosmonosy Service Centre also benefits from a 441 kWp system, operational since late 2019. Additionally, our manufacturing plant in Pune, India, is making use of the sun’s energy, with a new 12,200 MWh solar power plant covering up to 15% of the plant’s annual electricity requirements.
Large-scale investments in solar technologies
To power our way to net zero, we’re turning to renewable energy. Mladá Boleslav is a home to one of the largest photovoltaic roof systems in the Czech Republic. This system is made up of more than 5,400 photovoltaic modules and we expect them to generate more than 2 GWh of emission-free electricity annually. The Kosmonosy Service Centre also benefits from a 441 kWp system, operational since late 2019. Additionally, our manufacturing plant in Pune, India, is making use of the sun’s energy, with a new 12,200 MWh solar power plant covering up to 15% of the plant’s annual electricity requirements.
ŠKO-ENERGO power plant to transition to 100% biomass
Our subsidiary ŠKO-ENERGO, a comprehensive energy provider for both our car manufacturing processes and heating for the town of Mladá Boleslav, is launching a key project to modernise its plant. The upgrade will contribute to our ambitious environmental targets along the entire value chain, anchored in our Next Level – Škoda Strategy 2030. Slated for launch in the first half of 2024, this initiative will involve a complete revamp of the power plant within three years, transitioning all boilers to exclusively use biomass. Comprising 70% wood chips and 30% phyto-pellets, the biomass will be certified according to both European and Czech legislation, emphasising the sustainability of the entire supply chain. Once complete, the transition will result in significant CO₂ savings, estimated to total 290,000 tonnes per year.
Implementing sustainable practices at our plants in India
Our Chhatrapati Sambhajinagar (Aurangabad) plant in India has achieved its 2025 goal of 100% green energy usage well ahead of time. By upgrading its solar set-up in 2018, the site boosted its use of renewables and has cut annual CO₂ emissions by 48%. Thanks to these efforts, it’s now recognised as a Green Energy Plant by Maharashtra State Electricity Distribution Company Limited (MSEDCL) – the only automotive facility in the region with this certification. Moreover, our commitment to reducing environmental impact has been acknowledged by the Indian Green Building Council (IGBC), which awarded our Parts Expedition Center in Pune the IGBC Platinum certificate. This is the highest level of recognition offered by IGBC, and we are honoured to be the first automaker to receive this distinction.
Implementing sustainable practices at our plants in India
Our Chhatrapati Sambhajinagar (Aurangabad) plant in India has achieved its 2025 goal of 100% green energy usage well ahead of time. By upgrading its solar set-up in 2018, the site boosted its use of renewables and has cut annual CO₂ emissions by 48%. Thanks to these efforts, it’s now recognised as a Green Energy Plant by Maharashtra State Electricity Distribution Company Limited (MSEDCL) – the only automotive facility in the region with this certification. Moreover, our commitment to reducing environmental impact has been acknowledged by the Indian Green Building Council (IGBC), which awarded our Parts Expedition Center in Pune the IGBC Platinum certificate. This is the highest level of recognition offered by IGBC, and we are honoured to be the first automaker to receive this distinction.