Škoda Auto’s comprehensive sustainability strategy, established in 2019, continued into the years 2021 and 2022. It remained focused on three pillars: Environmental, Social and Governance.
New developments and updates were achieved across all three pillars in the reporting period 2021 and 2022.
In the environmental area, the Company continued with its decarbonisation journey. It also systematically implemented more sustainability elements into its products, such as natural, recycled, and recyclable materials in its cars. This is, for instance the case of the seat covers made from new wool and recycled PET bottles in the all-electric Enyaq SUV.
In the social area, the sustainability strategy was updated in 2022. The Company is attempting to transition to a new approach based on Creating Shared Value (CSV) principles. CSV enables Škoda Auto to create a shared value between the Company and its stakeholders. The strategy defines the following five focus areas: Education, Mobility, Volunteering & Employee engagement, Well-being and Diversity. In each of these focus area, important points of interest regarding the external and internal dimensions were defined to create a positive impact on society. Additionally, a new diversity strategy was established in 2022 to make sure that inclusion, equity, and diversity become part of the company culture creating an environment equal for all.
In the governance area, Škoda Auto strives to act responsibly and transparently not only internally but also externally. Škoda Auto has developed further relations with business partners by integrating the environmental and social standards into a Code of Conduct for Business Partners.
The Company dealt with multiple challenges in both reporting years, such as the Russo-Ukrainian War, instability of the supply chain due to global fluctuations, volatile energy prices, and the aftermath of the Covid-19 pandemic that still lingered into 2021 and 2022, restricting the production lines at times.
New legislative requirements and regulations were also a contributing factor in the acceleration of sustainability efforts across the whole company. With its strategy, the Company is taking steps to ensure that sustainability is truly present in all areas of business. This was shown in an unique Czech ESG Rating, developed by the Prague University of Economics and Business and the CEMS programme, where Škoda Auto was rated among the top 10 companies in its ability to report transparently on sustainability.