Production
Environmentally responsible manufacturing
We aim to produce vehicles with the lowest possible impact on the environment – protecting it for both current and future generations. Our efforts range from achieving carbon neutrality at our Vrchlabí plant to eliminating landfill waste across all Škoda Auto production sites since 2020. All activities that support resource-efficient manufacturing are brought together under our GreenFactory strategy.
Monitoring the impact of our production
As part of our GreenFactory strategy, we continuously monitor the environmental impact of our vehicle production. This is expressed as a percentage improvement in the Umweltentlastung Produktion (UEP) indicator, which measures reductions in five key areas: greenhouse gas emissions (CO₂), volatile organic compounds (VOCs), energy and water consumption, and landfill waste. Our ongoing goal is to reduce the UEP per vehicle produced – by 2025, we aim to improve it by 52.5% compared to 2010. We are making strong progress across all monitored areas. For example, we achieved our target of reducing energy consumption per vehicle produced by 32% – a full year ahead of schedule, in 2024.
Carbon-neutral operations at Czech plants by 2030
As a car manufacturer, we’re keenly aware of our responsibility towards climate protection. One of our key priorities is to achieve carbon-neutral operations across all Škoda Auto production sites in the Czech Republic by 2030. In practice, this means that by the second half of the decade, all energy used to manufacture our vehicles will be carbon neutral. 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 installed 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 operations at Czech plants by 2030
As a car manufacturer, we’re keenly aware of our responsibility towards climate protection. One of our key priorities is to achieve carbon-neutral operations across all Škoda Auto production sites in the Czech Republic by 2030. In practice, this means that by the second half of the decade, all energy used to manufacture our vehicles will be carbon neutral. 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 installed 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.
Responsible water management
We understand that water is a vital resource, which is why we’ve introduced a range of measures to reduce our consumption. Since 2010, we’ve cut water use per vehicle produced in the Czech Republic by 39.9%. This has been made possible through advanced technologies that significantly lower water usage in our paint shops, where we’re also increasing the share of recycled water – by 2.6% year-on-year in 2024. Under our GreenRetail strategy, employees play a key role in suggesting and developing water-saving initiatives – not only within Škoda Auto, but across our entire sales network. In 2020 alone, these efforts saved us around CZK 19 million.
Zero landfill waste from production
Since 2020, all waste generated in production has been either materially or thermally recovered. Instead of ending up in landfill, it is now either recycled or used for energy recovery. 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 landfill waste from production
Since 2020, all waste generated in production has been either materially or thermally recovered. Instead of ending up in landfill, it is now either recycled or used for energy recovery. 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
Supporting the circular use of steel
In 2025, we joined the SATURNIN project, an initiative led by the Czech company Beneva to promote circular economy principles in the automotive industry. The project aims to repurpose steel waste, thereby reducing the need to produce new steel – an energy-intensive process that generates greenhouse gas emissions. Škoda is contributing by supplying sheet metal offcuts from the production of several model lines. Although these offcuts are no longer needed for our own vehicles, other companies can use them to create new products.
Supporting the circular use of steel
In 2025, we joined the SATURNIN project, an initiative led by the Czech company Beneva to promote circular economy principles in the automotive industry. The project aims to repurpose steel waste, thereby reducing the need to produce new steel – an energy-intensive process that generates greenhouse gas emissions. Škoda is contributing by supplying sheet metal offcuts from the production of several model lines. Although these offcuts are no longer needed for our own vehicles, other companies can use them to create new products.
More sustainable car body painting
At the heart of our environmentally friendly approach to vehicle painting is the paint shop at our main plant in Mladá Boleslav. Compared with conventional facilities, it uses 447 grams less solvent and 26% less clear coat per average vehicle – while maintaining the same high standards of quality and durability. We’ve also installed a state-of-the-art air purification system that uses powdered limestone to reduce particulate pollutants, sustainably ensuring clean and safe air. In addition, the paint shop features a system that cuts emissions of volatile organic compounds (VOCs) from the painting process by 79%.
GreenLogistics initiatives
Our GreenLogistics programme focuses on reducing the environmental impact of our transport operations. To cut emissions in internal logistics and battery transport, we use electric trucks and we are electrifying our handling equipment. In 2024, we also converted 14 combustion-engine vehicles used for on-site freight transport to synthetic HVO fuel. Škoda Auto is making maximum use of rail transport for freight and is working to expand the number of destinations served for finished vehicle deliveries. Wherever possible, we use reusable and recyclable pallets, handle materials efficiently, and reduce logistics-related waste. We're also digitising logistics processes – already saving millions of sheets of paper each year.
GreenLogistics initiatives
Our GreenLogistics programme focuses on reducing the environmental impact of our transport operations. To cut emissions in internal logistics and battery transport, we use electric trucks and we are electrifying our handling equipment. In 2024, we also converted 14 combustion-engine vehicles used for on-site freight transport to synthetic HVO fuel. Škoda Auto is making maximum use of rail transport for freight and is working to expand the number of destinations served for finished vehicle deliveries. Wherever possible, we use reusable and recyclable pallets, handle materials efficiently, and reduce logistics-related waste. We're also digitising logistics processes – already saving millions of sheets of paper each year.
Large-scale investments in solar technologies
To power our way to net zero, we’re turning to renewable energy. Mladá Boleslav is 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 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 transitioning 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. This initiative involves a complete reconstruction of the power plant between 2024 and 2027, during which all boilers will be converted to run exclusively on 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. The goal is to reduce CO₂ emissions by an estimated 290,000 tonnes per year. This major project is a testament to Škoda Auto’s commitment to sustainable development and responsible innovation.
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.