Environment
Business activity at Škoda Auto is directly tied to the environment - it significantly affects it and is simultaneously influenced by it. Aware of this reciprocal dependence, environmental sustainability and environmental protection are one of the main pillars of Škoda Auto’s environmental strategy. The main issues in terms of the environment are, for example, improving energy performance, the circular economy, decarbonisation, sustainable water management, and the still-neglected biodiversity.
The environmental approach at Škoda Auto is declared by its Environmental Policy. It is based on the efficient management of natural resources and energy, the use of environmentally friendly and energy-saving technologies, and recyclable and recycled materials.
The Company strives to prevent pollution and carbon dioxide emissions and to eliminate these throughout the product life cycle, ultimately improving key indicators of its environmental impact. In doing so, Škoda Auto aims to contribute to climate change mitigation and environmental protection, driving positive change in the societies and the communities in which it operates.
Key Actions
Within the area in question, the following are among Škoda Auto’s key environmental indicators: climate change and decarbonisation (Decarbonisation index DCI – see Climate Change), Reduction of the Environmental Impact of Production (UEP indicator – Umweltentlastung Produktion – see GreenFuture Strategy/GreenFactory), preserving the ecosystem (see Pollution and Biodiversity), and development of the Environmental Compliance Management System (ECMS).
As far as mobility is concerned, the Company considers the impacts that its activities have on the environment at all stages of the life cycle of a vehicle. It is important to not only comply with increasingly strict legal requirements on emissions, but to also increase the share of low-emission and emission-free vehicles significantly (Battery Electric Vehicles – BEV, and Plug-In Hybrid Electric Vehicle – PHEV). See Climate Change.
Škoda Auto holds several important certificates that demonstrate its commitment to environmental protection, both in production and at the product level; for example, ISO 14001 certification for environmental management and ISO 50001 certification for energy management.
The GreenFuture corporate strategy has been covering environmental issues for more than 10 years now. It ensures effective management and control of all activities relating to environmental protection, which makes it possible to set out individual measures at the production, product, and retail levels. GreenFuture aims to minimise the environmental impact of all mobility products and services throughout their life cycle, from the phase of extracting raw materials to the end of their lifetime. The year 2023 saw the GreenFuture strategy celebrate 10 years since its official launch in 2013. The occasion was marked by new graphics and a new GreenFuture logo. The objectives, however, remain the same – to mitigate the environmental impacts of its products throughout their life cycle.
GreenFactory includes all activities that enable production in a way that respects natural resources. To monitor the environmental impact of its production, Škoda Auto uses what are known as key indicators (UEP). Škoda Auto is committed to reducing negative production-related externalities: energy consumption, CO₂ emissions, waste, water consumption, and Volatile Organic Compound (VOC) emissions.
Škoda Auto CZ* (2023 results)
* Škoda Auto CZ = Mladá Boleslav, Kvasiny, Vrchlabí
** UEP = Umweltentlastung Produktion = Reduction of the Environmental Impact of Production
2050 Group carbon neutrality commitment
ŠKO-ENERGO transitions entirely to biomass
Subsidiary ŠKO-ENERGO, which provides comprehensive energy supplies to Škoda Auto and heat to the town of Mladá Boleslav, launched a key project in 2023 with the aim of modernising its heat-production plant. It is one of the largest projects of its kind in the Czech Republic, with costs estimated at CZK 3.6 billion. Construction work is expected to begin in the first half of 2024, with the heat-production plant fully upgraded within three years. All boilers will use biomass as their sole source of fuel: 70% wood chips and 30% plant residue pellets – what are known as phyto-pellets. The biomass used will be certified in line with the requirements of European and Czech legislation, with an emphasis on the sustainability of the entire supply chain. The annual savings of carbon dioxide are estimated at 290,000 tons a year after completing the transition to the type of fuel mentioned. Energy production will therefore become entirely carbon neutral.
“The transformation of ŠKO-ENERGO into a company that uses 100% biomass is a crucial step for Škoda Auto on the road to carbon neutrality. Not only is the planned upgrade to the heat-production plant one of the biggest projects in the Czech Republic; it is also a significant contribution toward achieving the Company’s environmental objectives.”
Jan Hoffman
Head of Brand Management
Product decarbonisation
The company recognises the importance of tailpipe emissions in the overall carbon footprint of a vehicle, as calculated by the DCI. By increasing the share of electric vehicles, Škoda Auto can significantly reduce the DCI and thereby help achieve its carbon neutrality goals. This is part of its strategy aimed at sustainable development in the automotive industry.
As part of its commitment to sustainability and reducing its environmental impact, the Company takes a proactive approach to monitoring the carbon footprint and the share of recyclates in each new model. This is part of a broader strategy, one that encompasses production and the entire supply chain. When choosing its suppliers, the Company takes account of the environmental impacts of their products and processes. Suppliers are therefore motivated to make products having a clearly defined origin, carbon footprint, and share of recyclates.
The diagram shows the principal composition of a car’s carbon footprint over its lifetime (calculated for an average distance covered of 200,000 km), from production to final environmentally friendly disposal. In conventional cars, the lion’s share of CO₂ emissions comes at the usage stage, whereas in Battery Electric Vehicles it comes at the supplychain stage.
Electric cars have zero exhaust emissions when in use, but the Company needs to consider the higher production of CO₂e during the generation of electricity for charging. Within the context of the European Energy Mix, the overall carbon footprint of a BEV is far lower than that of conventional cars, despite the larger carbon footprint of the supply chain caused, in particular, by battery production. This is why the increase in the share of BEV in the product portfolio plays a significant role in decarbonisation plans.
Other important ways of achieving decarbonisation include increasing energy efficiency in the production phase and in the use phase, and the use of renewable energy in all of these phases.
Škoda Auto is developing long-term measures to reduce the energy consumption of vehicles in operation and production by using appropriate technologies, both in-house and with its suppliers. To further reduce the overall product carbon footprint (DCI), the Company is increasing the use of renewable energies and the proportion of recycled materials in its products.
In 2023, the average DCI of the Škoda Auto model portfolio was 38.01 t CO₂e per vehicle (without production phase compensation). In the coming years, the Company expects a positive development with a significant decrease in DCI due to an increase in the share of sales of electric cars.
Prioritization of decarbonisation measures
These are activities to prepare for and adjust to both the current effects of climate change and the predicted impacts of climate change in the future, which Škoda Auto carried out in 2023.
Decarbonisation was ranked among the top three most important topics in the stakeholder dialogue. See Sustainability Strategy. To achieve the climate commitment of becoming a carbon-neutral business by 2050, it is imperative that Škoda Auto proactively identifies, anticipates, and effectively manages climate policy risks and opportunities. Being ready for the transition to a low-carbon economy means being ready to transform the product towards electrification by taking steps to consume energy from renewable sources and emphasising energy efficiency. To this end, the Company has been monitoring climate-relevant risks as part of its risk management system, namely risks associated with adhering to fleet CO₂ emissions and non-vehicle CO₂ emissions. See Risk Management System.
More information on the operation of Škoda Auto's risk management system can be found in the Annual Report.
Similarly, Škoda Auto must be prepared for physical risks related to climate change; for instance, risks relating to water, a crucial resource for the Company’s production activity. Škoda Auto plans and implements measures to reduce its consumption of water and closely monitors water availability and quality, which may be impacted by the effects of climate change. One significant risk the Company faces is a potential lack of water during extended periods of drought. Škoda Auto is therefore developing sustainable solutions to reduce water consumption by providing its plants with industrial water. Another climate-related risk that the Company is addressing is the risk of flooding that comes with heavy rain. To mitigate this risk, Škoda Auto has constructed large retention tanks, and they hold and release excess water in a controlled way. See Water.
Energy consumption and the energy mix
Reducing the amount of energy consumed and switching energy sources from fossil fuels to renewables is a priority at Škoda Auto. The Company has implemented many measures to reduce the consumption of electricity, natural gas, heat, and compressed air. Such measures aim to reduce natural gas consumption in production processes, save thermal energy, accelerate the transition to LED technology, use alternative sources, and generally target energy waste in production and administrative areas.
Further energy savings are made in selected processes with the recovery of thermal energy or electricity, and where appropriate, the recovery of waste heat energy from technology (e.g., air-treatment equipment, technology in smelting plants and paint shops, the Engine Centre, etc.).
In 2023, the share of renewable sources in total energy consumption increased to a total of 41%.
| 2021 | 2022 | 2023 | |
| Total energy consumption CZ (MWh) | 1,288,753 | 1,162,666 | 1,193,208 |
| Total non-renewable energy consumption (MWh) | 814,600 | 754,362 | 702,992 |
| Fuel consumption from coal and coal products | 584,881 | 543,750 | 483,769 |
| Fuel consumption from crude oil and petroleum products | - | - | - |
| Fuel consumption from natural gas | 229,719 | 210,612 | 219,223 |
| Fuel consumption from other non-renewable sources | - | - | - |
| Consumption from nuclear products | - | - | - |
| Consumption of purchased or acquired electricity, heat, steam, and cooling from non-renewable sources | - | - | - |
| Share of energy consumption from non-renewable sources in total energy consumption (%) | 63% | 65% | 59% |
| Total energy consumption from renewable sources (MWh) | 474,154 | 408,304 | 490,216 |
| Renewable fuel consumption (including biomass, biogas, non-fossil fuel waste, renewable hydrogen, etc.) | 201,134 | 136,327 | 203,889 |
| Consumption of purchased or generated electricity, heat, steam, and cooling from renewable sources | 273,020 | 271,977 | 286,307 |
| Consumption of self-generated non-fuel renewable energy | - | - | - |
| Share of renewable sources in total energy consumption (%) | 37% | 35% | 41% |
For this report to align with ESRS standards, Škoda Auto reports the overall carbon footprint per annum for the individual production plants.
As mentioned, the carbon footprint is usually reported as the value per average vehicle (DCI). The overview below shows both values.
CO₂ footprint in the reported period for Czech plants and Ø vehicle (t CO₂e/%)
| 2021 | 2022 | 2023 | ||||
| Σ per annum in Czech plants | ||||||
| Scope 1 | 384,212 | 1.7% | 400,360 | 1.9% | 364,974 | 1.43% |
| Scope 2 | 0 | 0 | 0 | |||
| Scope 3 | 21,646,051 | 98.3% | 20,220,323 | 98.1% | 25,228,518 | 98.57% |
| Total | 22,030,263 | 100% | 20,617,546 | 100% | 25,593,491 | 100% |
| 2021 | 2022 | 2023 | ||||
| values per Ø Škoda vehicle | ||||||
| Scope 1 | 0.56 | 1.5% | 0.53 | 1.4% | 0.40 | 1.06% |
| Scope 2 | 0 | 0 | 0 | |||
| Scope 3 | 37.78 | 98.5% | 38.39 | 98.6% | 37.61 | 98.94% |
| Total | 38.34 | 100% | 38.92 | 100% | 38.01 | 100% |
Remarks:
Scope 1 per vehicle: all vehicles and components produced at Škoda Auto’s Czech plants (including Seat vehicles and components for other brands; 2023: 864,889 cars).
Scope 1 per Škoda vehicle: value calculated (by the Group) as an average of the vehicles produced at Škoda plants in the Czech Republic and India.
Scope 2: neutral (all energy purchased by Škoda Auto in the Czech Republic is bought with a guarantee of origin – 100% carbon-neutral sources).
Scope 3 per annum: values per vehicle are multiplied by the number of Škoda vehicles registered by customers in the relevant period in the specified regions (EU27, UK, Norway, and Iceland) (2023: 670,882 cars).
Scope 3 per vehicle: average value per vehicle according to customer registration on markets (EU27, UK, Norway, and Iceland).
In 2023, the average DCI of the Škoda Auto model portfolio was 38.01 tCO₂e per vehicle (without offsetting the production phase). In future years, the Company expects positive development, with a significant DCI reduction as a result of an increase in the share of electric car sales. A detailed overview of the carbon footprint per vehicle (DCI) for the year 2023 can be found in the graphic.
Škoda Auto places a fundamental emphasis on safely handling substances that could endanger soil or groundwater if allowed to leak. Whenever technologically possible, substances are chosen that have a lesser impact on the environment and on health.
The Company regularly evaluates its effects on the environment as part of the environmental management system in place, certified in line with ISO 14001. Chemicals are primarily assessed in terms of preventing serious accidents using an occupational health and safety management system in line with ISO 45 001.
Škoda Auto is committed to lowering the value of the Reduction of the Environmental Impact of Production (UEP) Indicator. This indicator includes specific water and energy consumption, specific production of volatile organic compounds (VOC), CO2 emissions (kg per car), and production waste intended for landfilling. The aim is to reduce the UEP by 52.5% by the year 2025 compared to the year 2010. See GreenFuture.
A change in its integrated permit has allowed the Company to increase the maximum production capacity in modern paint shop B in Mladá Boleslav by 84,000 bodies per year. The integrated permit incorporates limits and conditions for environmental components (air, water, waste, noise, etc.). The Best Available Techniques (BAT) from the environmental perspective are required to be able to minimise the impact that the functioning of these facilities has on the environment.
As a result of employing the Best Available Techniques, this paint shop has a significantly lower environmental impact than paint shop A. In the future, increasing the permitted capacity will make it possible to produce bodywork in a more environmentally friendly way to a far greater extent. For example, the specific production emission of volatile organic compounds (VOC) at paint shop B is more than 10 times lower than at paint shop A. Emissions of particulate pollutants from the spraying process are also an order of magnitude lower.
Alongside the production paint shops, which are the decisive source of VOC, the Company also pays attention to lesser sources. And so it was that two paint booths, used to repair paintwork, were replaced in Hall M3 in Mladá Boleslav in 2023. Two paint booths were replaced at Technical Development at the Model Centre, while a paint booth for the needs of Central Technical Servicing in Hall V17 was also replaced. The gas burners in the new booths are integrated within the booth, resulting in energy savings and a reduction in natural gas consumption. This results in a reduction of NOx and CO2 emissions.
Paint shops undoubtedly use the most chemicals during the car production process as a whole. Technological measures were implemented in 2022 that made it possible to apply thinner layers of filler when painting, in turn saving up to 720 tons of material per year. Cooperation between the Company and its suppliers in 2023 made it possible to optimise the formula for filler or base layers, which are used to even out microscopic unevenness. The original fillers were detrimental to water organisms and to employee health, posing a higher risk in the event of leaking or in an accident. The only danger of the new fillers is that they might irritate the eyes. This, then, is yet another innovative measure in the painting process.
Regular monitoring and evaluation of pollution is an integral part of the work of Škoda Auto. The environmental impact of pollution is regularly assessed at least once per year within ECMS, and is subject to audits in line with ISO 14 001 standard. Based on this assessment, each organisational unit at the Company has an overview of its environmental impact, and takes appropriate measures to mitigate the impacts of its activity.
Moreover, Škoda Auto also has a system for managing extraordinary incidents. The Company manages the risk of contamination of surface water, soil, and groundwater by the harmful substances used on Company premises or caused by an accident. During a fire, for example, there is a risk of extraordinary emissions leaking into the air, while groundwater or surface water could be contaminated by firefighting water with combustion products. Emergency plans, rules of operation, and internal organisational standards have been put in place to minimise the impact of such emergencies.
When handling harmful substances, the Company consistently applies the principles of multi-barrier protection. Places in which there is a higher occurrence of harmful substances are taken into consideration in emergency plans, which are subject to regular review.
The risk of the possible leakage of harmful substances through the sewage system is eliminated by a device that captures and detects such substances in outlets from production plants. The permanent presence of the Company’s fire rescue service, equipped to take action if harmful substances should leak, also helps to minimise risks at all production plants. Furthermore, the Company has a system in place for evaluating and approving the chemicals used. Regular equipment maintenance and leakage checks play an important role in preventing emergencies.
There were no leakages of hazardous substances in 2023.
Overview of emissions
(2023 data based on 11 months actual + 1 month estimate)
* Volatile organic compounds
** Heavy metals
The year-on-year increase in emission values was caused by a larger number of cars produced and a smaller proportion of cars painted in the new paint shop.
Release of controlled substances and fluorinated greenhouse gases from refrigeration equipment for technology needs in 2021–2023
(2023 data based on 11 months actual + 1 month estimate)
Solid particles suspended in air – PM (t/year)
(2023 data based on 11 months actual + 1 month estimate)
Year-on-year increase due to increase in car production in 2023.
The Company’s fundamental aim is to maximise the effective and considerate use of resources. This aim also applies to water management, which is projected in the GreenFuture strategy and the Group-wide goTOzero Environmental Mission. One of the five indicators that make up the Reduction of the Environmental Impact of Production (UEP) is specific water consumption per manufactured car. The Company set itself the target of reducing UEP by 52.5% by the year 2025 compared to the year 2010. The plan to reduce specific water consumption per manufactured car by 31% compared to 2010 was accomplished in 2023. This indicator should remain until 2025.
All five environmental indicators that make up UEP are monitored on a monthly basis in the “Management Cockpit”, a reporting tool in which actual water consumption (for past months) and expected water consumption (for future months) are continuously compared with the annual water consumption plan (target consumption). Consumption is also monitored in this way in the Management Cockpit for individual plants.
As far as GreenFactory is concerned, this is mainly a matter of applying modern technology in production, as a result of which water is used again and again, in turn reducing demands on natural water sources.
In light of the geographical location of its plants and the fact that waste waters no longer have a negative impact on the quality of watercourses and reservoirs, the Company did not adopt any specific principles or procedures concerning the sustainability of oceans and seas. Given the nature of its activities, Škoda Auto does not deem the issue to be of any relevance at this time.
In 2023, a 31% reduction in specific water consumption per manufactured car was achieved.
Paint shops are the biggest consumers of water at Škoda Auto plants. For this reason, advanced technologies are used there to ensure multiple water use (recycling). Among them, for example, is membrane technology and cascade backwashing between the individual stages of painting. The quantity of recycled water in paint shops in 2023 stood at 586,539 m³, marking an increase of 25% on the figure of 467,759 m³ in 2022.
At paint shop B in Mladá Boleslav, an advanced method of dry separation is used, in which paint particles that do not stick to the bodywork are trapped in fine limestone dust. This process replaces the traditional use of water and significantly reduces the amount of waste sludge generated when trapping overspray.
Large retention tanks that hold rainwater and subsequently release that water in a regulated way help manage water efficiently. Some of the water captured in Mladá Boleslav is used to water plants. Around 3,700 m3 of liquid per year. Approximately 1,200 m3 of rainwater is used per year to clear roads and pathways. The water captured in retention tanks fully covered this consumption in 2023. The rainwater captured is also available for use in watering greenery in the town.
The Company was also able to optimise the cleaning of cooling water filters in Hall M6 in 2023, with expected savings of 525 m3 of that liquid a year.
Amount of recycled water in paint shops in 2023
586,539 m³
Quantity of recycled water in paint shops
(2023 data based on 11 months actual + 1 month estimate)
Having enough quality water is a crucial aspect of vehicle production, and one to which the Company pays considerable attention. Dialogue with stakeholders revealed that the issue of water is deemed important.
The main source of water for production is surface water from the Jizera, Bělá, and Labe Rivers. To find ways of saving water, Škoda Auto continually monitors water consumption, wastewater production and quality, and the quantity of reused (recycled) water. Risks and appropriate measures are then determined based on these data.
Škoda Auto monitors and assesses the current water availability situation in all regions in which it carries out its production. It primarily looks for suitable measures to reduce water consumption and endeavours to find alternative sources.
At the Kvasiny plant, the risk of a potential lack of water from the river was deemed to be the greatest among all of the Company’s production plants. For this reason, Škoda Auto had a hydrogeological survey conducted and long-term well testing carried out. Based on the results of these activities, the water authority granted an increase in the taking of groundwater to supply the plant to 250,000 m3 per year in the event that it is not possible to take water from the river. Taking this quantity is safe and under no circumstances jeopardises stocks of groundwater in the area.
Water consumption (m³)
(2023 data based on 11 months actual + 1 month estimate)
| Unit | 2021 | 2022 | 2023 | |
| Water taken | m³/year | 1,352,296 | 1,350,084 | 1,485,184 |
| Wastewater * | m³/year | 1,018,207 | 1,083,963 | 1,148,008 |
| Recycled water ** | m³/year | 659,390 | 595,043 | 744,911 |
* Wastewater – wastewater after physical and chemical pre-treatment discharged to the municipal wastewater treatment plant (Mladá Boleslav, Vrchlabí) or the wastewater treatment plant in the factory Kvasiny.
** Recycled water – definition for the purposes of this report – water that has been used more than once. Multiple use of water in cooling circuits is not included.
Water consumption - water taken (%)
(2023 data based on 11 months actual + 1 month estimate)
Water consumption - recycled water (%)
(2023 data based on 11 months actual + 1 month estimate)
Wastewater - indirect discharge (nitrogen, phosphorus)
(2023 data based on 11 months actual + 1 month estimate)
| Unit | 2021 | 2022 | 2023 | |
| Total nitrogen – indirect discharge | kg/year | 53,042 | 40,778 | 43,619 |
| Total phosphorus – indirect discharge | kg/year | 5,950 | 4,761 | 4,750 |
Water consumption per vehicle (m³)
(2023 data based on 11 months actual + 1 month estimate)
The specific water consumption per car produced in 2023 was reduced due to the stabilization of the production program.
At the same time, there was an increase in the share of recycled water in total consumption resulting from the stabilisation of the production programme and a higher proportion of bodywork produced in the new paint shop B at the Mladá Boleslav plant.
The total water consumption per manufactured car was reduced in 2023.
The protection and preservation of biodiversity and ecosystems are an integral part of Škoda Auto’s goTOzero Environmental Mission and have long been key elements of the Company‘s environmental management. The aim here is to reduce negative impacts on biodiversity and ecosystems and promote projects that help preserve them. Škoda Auto implemented its new GreenFuture strategy in the year 2023. The issue of biodiversity and ecosystems on land and in water underwent comprehensive evaluation, both inside and outside the Company’s production plants. Similarly, in its Environmental Policy 2025, Škoda Auto committed itself to exerting maximum effort to mitigate any negative ecological impact, and to plant and care for greenery. As far as its value chains are concerned, Škoda Auto plans to integrate considerations of the use of resources into the Code of Conduct it requires of its business partners.
To be able to monitor success, the Company develops dedicated indicators and targets so as to achieve near-natural development and reduce the use of land and resources. It accomplishes this by carrying out projects with partners and engaging with employees. Moreover, Škoda Auto is committed to reaching specific targets in other areas that directly influence the state of biodiversity and ecosystems, such as reducing emissions, minimising waste and pollution, and recycling materials.
In line with Group-wide objectives, Škoda Auto aims to be more active in integrating biodiversity and ecosystems into its strategy and in identifying and assessing relevant impacts, risks, and opportunities within its value chain.
To this end, the Company keeps a watchful eye on the development of policies, standards, and tools at the global and European level.
Škoda Auto comes up with educational projects, prepares special communication, and finances outside projects so as to fulfil its commitment to protect and support biodiversity and ecosystems.
The Company maintains and plants biologically diverse greenery, such as trees, shrubs, and grassland. It manages 208.5 hectares of biologically diverse forest on a test track site, employing the services of an outside specialist. As part of this care, the monocultural forest cover has been gradually enriched with a diverse variety of new trees, including species that are better able to withstand changing climatic conditions and protect forest land from erosion. Beyond climate change mitigation and adaptation, these initiatives also enable Škoda Auto to protect individual species of greenery, and in turn support the biodiversity and ecosystems dependent on this greenery, including vulnerable pollinators. So far, no quantitative evidence about the success of such initiatives has been collected.
Škoda Auto Endowment Fund grant programmes provided the relevant projects with support. A grant programme entitled “Krakonošovy Zahrádky” is also in place to target biodiversity and ecosystems.
In 2023, Škoda Auto provided its support to the publication of “Český ráj” (Bohemian Paradise), a book compiled by RNDr. Zdeněk Mrkáček under the auspices of the Czech Union for Nature Conservation (ČSOP) in Klenice. In a unique style, the book maps out the transformations of fauna and flora over the years in the Protected Landscape Area (CHKO) of Bohemian Paradise, not far from the Company’s main plant.
The immediate surroundings of Škoda Auto’s three Czech production plants provide the environment for a number of plants and animals. Around 356,000 flowers, 1,128 trees, and some 470 bushes have grown there over a total area of approximately 23,000 sqm. In 2023, the Company installed insect houses on its grounds and took care of the listed trees in its surroundings.
The Company also enriched the Czech landscape with new trees, doing so for the seventeenth year in a row. As has become the tradition, it planted one tree for every car sold in the Czech Republic as part of the Škoda Trees grant programme. Through this project, it had by the end of 2023 planted a total of 1,244,080 trees, matching an area of 395 football pitches, in more than 240 places throughout the Czech Republic. As part of its support for biodiversity, the Company joined forces with the Škoda Auto Endowment Fund to open up the Krakonošovy zahrádky grant programme, which aims to increase biological diversity in the Mladá Boleslav, Kvasiny, and Vrchlabí regions. Towns, local governments, and other organisations are able to obtain a grant of up to CZK 250,000 with which to finance their projects. Sixteen projects received support in 2023.
In addition to these activities, the Company also supports the active involvement of its employees in specific projects. Škoda Auto and its employees were therefore involved in cleaning up the surroundings of the Company’s plants in Mladá Boleslav, Kvasiny, and Vrchlabí for the ninth time, as part of the Ukliďme Česko (Let’s Clean Up Czechia) project. In 2023, employees ventured into areas of great natural value in the Orlické Mountains and the Krkonoše Mountains and into the former military zone of Ralsko to help alleviate the environmental burden. A total of 250 employees signed up for the clean-ups, collecting 8.5 tons of waste. A number of similar activities went ahead at different organisational units throughout the year 2023.
Škoda Auto again signed up for the Volkswagen Group’s #Project1Hour initiative to mark Earth Day. This Company-wide challenge is a reminder of the importance of personal engagement in climate preservation, calling on employees to think about their own contribution to reducing the environmental footprint.
As part of GreenWeek, an event organised by the Company for the third time in a row, employees were given the opportunity to discuss issues with experts from different areas of the Company and guest experts from outside. Discussing current projects helped the Company uncover as yet untapped opportunities in the sphere of sustainability and raise awareness of sustainability within the Company, and what sustainability means in everyday life.
208.5 ha of biologically diverse forest on a test track site
The Group evaluates the state of biodiversity and how this in influenced by the activities of individual production plants with the help of its Biodiversity Site Assessment Tool. Identifying and assessing a potential negative impact on biodiversity are governed by the mandatory process of Environmental Impact Assessment (EIA). This is carried out before any significant development project, such as constructing new buildings, increasing production capacity, or making fundamental changes in technology. The results of EIAs have repeatedly confirmed that the Company’s development projects have no or minimal impact on biodiversity. Two new projects were assessed in this way in 2023: “Expanding the finished-vehicle warehouse, the empty-packaging warehouse, and waste management” at the Kvasiny plant, and the “Paint4Future – New paint shop A” project in Mladá Boleslav. In the event that any negative impacts on biodiversity and ecosystems are identified, they would be assessed, and the appropriate mitigation measures taken.
In order to monitor risks and impacts, Škoda Auto maintains a list of protected areas and areas less than 10 km from its production plants. This list holds crucial data about the level of their protection (see the table in this chapter below).
Endangered species
One integral part of an environmental impact assessment is the potential impact on endangered species of plants, fungi, and animals. All projects assessed to date have been evaluated as having no or no significant negative impact on endangered species.
Deforestation
When choosing sites for its development projects, Škoda Auto avoids forest land and prefers to invest in its existing premises or use brownfield sites. Reusable packaging is favoured in packaging management planning, minimising the production of wood waste. Wood and paper waste from production are sent for material recycling.
Soil
Soil use is crucial for Škoda Auto production plants, which is why the Company endeavours to handle it responsibly.
As far as new development projects are concerned, the Company prefers to locate them on existing premises or use brownfield sites. The potential impact on soil is also assessed as part of the EIA. All projects assessed to date have been evaluated as having no or no significant negative impact on soil.
The Company is involved in the remediation of old environmental burdens from the time before its privatisation at the plant in Mladá Boleslav and the Kosmonosy servicing centre. The level of pollution is regularly monitored, and groundwater regularly undergoes remediation. Contaminated building structures and soil also undergo remediation during reconstruction and conversion work. Old environmental burdens are gradually removed in this way, and this has a positive impact on the quality of groundwater and the ground.
The Company has not adopted any principles or procedures when it comes to sustainable agriculture; in light of its activities, this area is not relevant. The Company makes efforts to use ingredients from local farmers in its canteens, through an external service supplier.
A sustainable approach to using resources and materials is anchored in Company Policy and Environmental Objectives 2025, as approved by the Board of Management at the Company. Among the environmental objectives for 2025 is the ambition to reduce the quantity of materials used and reduce waste products. A sustainable approach is also seen in the GreenFuture strategy and its three pillars: GreenFactory for the production area, GreenProduct for the product area, and GreenRetail for the servicing and dealership network area.
As defined in its Policies and Targets, Škoda Auto systematically endeavours to maximise effective resource use and innovates its approaches in line with the principles of the circular economy.
All car models currently produced by Škoda Auto are homologated in compliance with the requirements for recyclability outlined in Directives 2005/64/EC and 2009/1/ EC.
The Company uses the labelling of plastic vehicle parts to provide information about the materials used. This helps to determine the composition of each part, simplifying the subsequent sorting and processing of waste according to different material groups. This approach reduces the overall environmental impact of the product and increases the share of recycled materials that can be used as a substitute for primary raw materials.
To fulfil the set goals of minimising the environmental impact, Škoda Auto uses recycled and environmentally friendly materials, such as bio-based materials that have the same qualities as the primary materials. The Company prioritises the use of local raw materials with a lower carbon footprint (when compared to the primary material).
Example of sustainable materials used in current Škoda models
Surface/upper fabric layer of the ceiling of the Superb 2023, with 100% PET recyclate.
Inset mat in the Superb 2023, with 34% recyclate content.
In future models, the share of recycled materials will continue to rise. In the first phase, starting in 2025, the content of recycled plastics in new models, compared to current products, will double to approximately 40 kg net material weight.
This target for the share of recycled plastics will be continuously revised and extended to other materials, such as metals, glass, etc., in line with market research and anticipated legislation.
Share of recycled plastics in new models from 2025 up to 40 kg net weight material.
Škoda Auto endeavours to prevent the creation of waste in production and to use sources of raw materials in a considerate way. When waste is created during the production process, a hierarchy of waste management is consistently applied. Material and energy use are preferred over landfilling.
When it comes to waste management, the Company invariably applies the following principles:
— All waste products, without exception, are passed on to waste management facility operators or traders in accordance with the Waste Act.
— All waste which the Company produces is weighed and put on record in line with legislation.
— When selecting waste collectors, Škoda Auto favours solutions which ensure a higher level of waste management according to the waste management hierarchy.
The GreenFuture strategy has set goals for the circular economy and resources, such as the reduction of waste generated per manufactured car. These targets are incorporated in an aim to reduce UEP by 52.2% by 2025. For more see GreenFuture Strategy.
Škoda Auto endeavours to prevent the creation of waste in production.
The GreenRetail strategy considers waste management and handling end-of-life products. The priority objective is to ensure the transformation of waste into a resource that can be used in the manufacture of new cars and their components. When, in light of qualitative requirements, it is not possible to use recycled waste material in the automotive industry itself, the Company favours partners that are able to make products with the maximum added value.
The priority goal is to ensure the transformation of waste into resources.
GreenProduct
The Company’s emphasis on ecology in the new Superb and Kodiaq models is underscored by fabric covers made entirely of recycled materials. And in the characteristic Simply Clever elements – an umbrella and an ice scraper, now made of recycled plastic. This solution will, over time, be used across the portfolio of models.
GreenFactory
Škoda Auto checks the management of waste created during car production so as to ensure that as much of it as possible is used in line with the waste management hierarchy. In 2023, for example, it launched the material use of waste anti-freeze and brake fluids, which were previously passed on for energy use. Now these fluids undergo distillation, which makes it possible to use them again in accordance with the principles of the circular economy.
Another example is a project that reuses selected IBCs (intermediate bulk containers), which had also been passed on for energy use. The Company now delivers them to the operator of a facility that cleans them and readies them for reuse. Once manufactured, IBCs can therefore serve their original purpose repeatedly. This change leads to savings on resources and energy. As part of its attempts to seek out new possibilities in waste management, Škoda Auto became a member of the Czech Circular Hotspot, a platform that puts the principles of the circular economy into practice, and where information in this area may be exchanged
GreenRetail
Second life of batteries
Škoda Auto uses robust and long-lasting batteries in its electric cars. For fully electric, battery-powered vehicles, Škoda Auto provides an 8-year or 160,000-km warranty (whichever comes first) and guarantees that the battery will have at least 70% capacity.
For plug-in hybrid electric vehicles, the Company provides the same warranty, but without the guarantee of at least 70% capacity. As with internal combustion vehicles, many test and prototype vehicles are not sold as used cars, but are scrapped after testing. The batteries from these vehicles would be expensive to recycle. Instead, they are given a second life, meaning they can still be used in a different way for years to come. Given that the batteries used in typical stationary energy storage consume only a fraction of the power demands of a vehicle, even older and used batteries have enough power for a second life. Stationary energy accumulation systems are used as boosters for DC fast-charging stations and backup power sources (replacing diesel generators) and accumulate green energy from photovoltaics. Second life batteries can therefore contribute to reducing CO₂ in the energy sector after their sustainable life in transportation. Between 2021 and 2023, Škoda Auto obtained the following quantities of batteries and battery modules for a second life, 99.9% of which came from internal sources. In total, more than 250 tons of batteries were collected in the years 2021 and 2023.
Overview of the second life of batteries project
The different year-on-year ratios in the number, weight, and capacity of batteries stem from the presence of various battery types.
| 2021 | 2022 | 2023 | |
| Amount | 1,040 | 1,726 | 2,674 |
| Weight [kg] | 61,088 | 40,092 | 149,764 |
| Capacity [kWh] | 8,702 | 8,686 | 26,507 |
The increase in the number of batteries in 2023 is due to the expansion of the 2nd life program to include more types of battery modules, namely batteries and modules from the new Superb PHEV and Kodiaq PHEV.
Take-back system – tyres, batteries, and end-of-life vehicles
There are more than 800 places in the Czech Republic where tyres and lead-acid batteries can be handed in for free as part of the take-back scheme. A total of 2,214 tons of tyres were collected and recycled there in 2023. The vast majority of the materials obtained from recycling these used products have been utilised to create new products, including new lead-acid batteries, shock-absorbing and anti-vibration elements, noise barriers, playground equipment, and other rubber granulate-based products. Old vehicles and end-of-life vehicles can be returned in the Czech Republic without charge (if still whole) at more than 20 partners. This guarantees that the vehicle will be processed and the resulting material will be used to the greatest possible extent.
A total of 2,214 tons of tyres were collected and recycled there in 2023.
Dialogue among stakeholders revealed that the use of resources and the circular economy are considered important and marked out as being one of the top priorities of Škoda Auto and stakeholders alike. See Sustainability Strategy.
The graph below presents the percentage material composition of the Škoda Enyaq 80 and Škoda Octavia.
Material composition of selected cars
The material composition of models that run on a combustion engine and BEV models stems from the varying structures and components used. The volume of aluminium and materials contained in the battery increased in BEV models. As a result of the new material composition of the vehicle, which is often more demanding on energy from the production perspective, the Company is looking for ways to further reduce the Decarbonisation Index (DCI) value. One option is to find suppliers that use energy from renewable sources, use recyclates, and work in much the same way as Škoda Auto on reducing their carbon footprint.
The graphs below present information on the Škoda Auto’s total amount of waste from its own operations in tons.
Total waste by type (thousand tons)
(2023 data based on 11 months actual + 1 month estimate)
In 2023, there was an increase in waste, which is related to the increase in production activity.
| Type of operation | Hazardous waste – materials examples | Non-hazardous waste – materials examples |
| Preparation for reuse | Metal packaging | |
| Recycling | Ferrous and non-ferrous metals, car wrecks | Ferrous and non-ferrous metals, blasting material, paper, plastic, glass |
| Energy recovery | Absorbing agents, paint, and varnish waste | Composite packaging, mixed plastics, mixed municipal waste |
| Incineration | Medical waste | |
| Landfilling | Street rubbish, construction waste | Street rubbish, construction waste |
