Sustainability report 2021-2022
Foreword
Dear Reader,
Sustainability is of utmost importance to all of us at Škoda Auto. Therefore, we anchored sustainability in our overarching Next Level – Škoda Strategy 2030. As environmental, social, and economic responsibilities are intertwined, they are the most important prerequisites for the success of our company. At Škoda, we are explorers at heart, so we think globally, and act locally.
Our mindset, combined with our typical hands-on approach, led us to achieve a lot in the different fields of sustainability during the past two challenging years. Environmental sustainability is key for us as a car manufacturer. We are accelerating our e-roadmap and plan to offer 6 all-electric vehicles in the coming years, which will not only reduce our CO₂-footprint, but also reflect circular economy principles by using recycled, recyclable, and environmentally friendly materials in our models. Additionally, we are on track to decarbonise our production sites in the Czech Republic and India by 2030. For example, last year we increased the percentage of renewable energy at Škoda Auto locations to around 35%. Altogether, we will invest a total of 5.6 billion euros in electromobility by 2027.
The company’s social responsibility consists in a positive attitude towards our employees, as well as towards citizens in the regions where we operate. We have strengthened our activities in the fields of education, accessible mobility, volunteering as well as mental and physical health. The Endowment Fund established by Škoda Auto widely supports the wider surroundings of Mladá Boleslav, Vrchlabí and Kvasiny. It thus helps in the development of these areas and supports the activities of local communities.
Our social responsibility is also of fundamental importance in the event of unexpected events or natural disasters. In 2021, we supported tornado-damaged regions in South Moravia by providing mobility resources and together with our social partner, KOVO Unions, we have also donated 8.5 million Czech crowns. Following the outbreak of the war in Ukraine and the ensuing humanitarian crisis, we provided logistical support, financial aid in the amount exceeding 20 million Czech crowns and launched educational integration programs for thousands of refugees as well as families of Ukrainian colleagues in the Czech Republic.
Last but not least, economic sustainability also drives us at Škoda – to be a strong and reliable partner for our employees, customers, dealers, and the whole society. This report serves as a public commitment to transparent and ethical business conduct along the entire value chain. I am proud that Škoda Auto was ranked among the top 10 companies in the Czech ESG rating, which assessed selected indicators within the individual ESG pillars and it compared the extent to which domestic companies monitor and communicate their impact on the environment, society, and governance.
At the same time, we strive to continually improve and sustainably transform our business, e. g. by establishing an independent external Sustainability Council in 2021. It offers expert advice and brings new impulses in implementation of concrete measures. With these efforts we intend to serve as a role model for other companies to inspire a holistic transformation of our industry. If you wish to learn more about our sustainability journey at Škoda Auto, you can find new developments and highlights on our new Škoda sustainability website.
Klaus Zellmer
Chairman of the Board of Škoda Auto
About this Report
Sustainability statements have been prepared on an individual basis for Škoda Auto a.s. The scope of the report was aligned to the scope of the Annual report 2022.
The assessment of the materiality of the impacts, risks, and opportunities of sustainability topics was conducted in line with relevant legislation and the Volkswagen Group’s approach.
Škoda Auto’s previous sustainability report was prepared in accordance with the GRI standards, and this report is largely based on the same approach. However, it is not fully compliant with the GRI standard as it aims to gradually integrate the new European Sustainability Reporting Standards (ESRS) under the EU Corporate Sustainability Reporting Directive (CSRD).
If specific changes have been made to reported metrics or methodology, these changes will be presented and explained directly in the text.
How to Read the Škoda Sustainability Report?
The purpose of this report is to disclose the developments in Škoda Auto during 2021 and 2022. To ensure the highest quality of disclosed information, Škoda Auto is starting to integrate the ESRS as defined by the CSRD.
Following the ESRS, the report is divided into two main blocks and EU Taxonomy
1
The General disclosure, which specifies key strategic information regarding Škoda Auto’s business and describes the general context of the Company’s approach to sustainability.
2
The Topical part consisting of three sections on the Environment, Social, and Governance, all of which specify the key details of Škoda Auto’s approach to particular topics in the respective sustainability areas.
Two of the topical sections (environment and social) follow the structure given by the ESRS. In some topics, certain subsections were skipped due to lack of data or marginal importance:
› Policies and ambitions
› Actions
› Risk and impact assessment
› Data and specific disclosures
This structure is not followed in the Governance section due to the specificity of the topic.
3
The EU Taxonomy that discloses Škoda Auto’s alignment with the respective regulation.
Content
