SKODA AUTO is forging ahead with decarbonising the company, supported by a holistic action plan under the NEXT LEVEL – SKODA STRATEGY 2030. In addition to accelerating the ramp-up of electromobility, the focus is on sustainably producing and operating battery-electric vehicles, including supply chains.
To achieve this, SKODA is committed to using, for example, recyclable materials in its cars and consistently recycling the high-voltage batteries from e-vehicles.
Sustainability at the heart of the NEXT LEVEL – SKODA STRATEGY 2030
The car manufacturer has defined sustainability as a key area of its NEXT LEVEL – SKODA STRATEGY 2030 and has set itself ambitious targets to effectively reduce the CO2 footprint of its business activities along the entire value chain. Over the past year, SKODA AUTO’s investments in this area – along with comprehensive, transparent communication on the topics of environment, social affairs, governance and finance – have helped the Volkswagen Group to become the first automotive company in the world to meet the reporting requirements of the European Union’s Sustainable Finance Action Plan and the EU Taxonomy.
Expanding electromobility
SKODA AUTO will be launching three new all-electric models by 2026. Further models are in the pipeline. SKODA aims to increase the all-electric share of its European vehicle sales to over 70% by 2030. SKODA AUTO aims to reduce the CO2 emissions of its fleet by more than 50% by 2030 compared to 2020 through the continuous expansion of electromobility.
Decarbonising production
SKODA AUTO is increasingly turning to renewable energy to manufacture vehicles, and in doing so is significantly reducing CO2 emissions in production. This means that all three Czech plants will be operating with net-zero carbon emissions by 2030; the production plants in India will be completely CO2-neutral by 2025. The component plant in Vrchlabí had met this target by the end of 2020. In addition to using renewable energies, the comprehensive measures also include recycling waste, using resource-efficient materials and processes and predominantly green logistics. SKODA AUTO is also supporting the construction of a wind farm in Moravice-Melč in the east of the Czech Republic in collaboration with SKO-ENERGO.
Sustainable material cycle and second life cycle for batteries
SKODA AUTO is increasingly opting for natural, recycled and recyclable materials such as those used in the SKODA VISION 7S concept car. In addition to metals and glass, recycled plastics are already being incorporated into new vehicles. In the SKODA ENYAQ iV, for example, the seat covers are made of recycled PET bottles. The next steps involve composite materials made from plastic and fibres from sugar beet or the reed plant Miscanthus.
The use of rice husks, hemp, cork and coconut fibres is also being researched. SKODA is deploying used high-voltage batteries from electric vehicles in stationary energy storage systems before they are recycled. This second life cycle effectively reduces the batteries’ CO2 footprint.
Climate-neutral operation of e-vehicles
SKODA AUTO’s holistic approach to sustainability not only includes CO2-neutral production but also running electric cars with virtually zero emissions. SKODA ENYAQ iV cars are already delivered to customers with a carbon-neutral balance sheet. SKODA AUTO compensates for currently unavoidable CO2 emissions during production by purchasing certified carbon credits. In addition, the company is supporting the expansion of renewable energy sources in Europe. For example, the car manufacturer is involved in constructing a new wind farm in Finland. With a calculated energy volume of 570 GWh per year, the plant will produce enough green energy in the future to supply around 150,000 households with electricity – or power SKODA electric vehicles with zero local emissions.
Newly established External Sustainability Council with international experts
SKODA AUTO established its own External Sustainability Council in November 2021. The external, independent panel consists of five internationally renowned experts who advise the Board of Management on the implementation of planned sustainability measures and also provide new perspectives, impetus and approaches. This makes the car manufacturer one of the first companies in the Czech Republic to draw on the expertise of its own committee in this area.
Additional sustainability activities
On its path towards greater sustainability, SKODA is systematically involving its 3,200 retailers worldwide. Alongside GreenRetail in the retail sector, GreenProduct focuses on vehicles that are as environmentally friendly as possible, and GreenFactory is dedicated to sustainable production.
The company’s sustainability measures build on the Volkswagen Group’s environmental mission statement ‘goTOzero’. The policy encompasses the topics of climate change, resources, air quality and environmental compliance.
As part of this, the #Project1Hour initiative calls on the Volkswagen Group’s 660,000 employees to consider their own contribution to sustainability and climate protection to mark Earth Day each year on 22 April. In 2022, employees of SKODA AUTO and its subsidiaries SAVWIPL India as well as SKODA AUTO UK and SKODA AUTO Germany took part in the campaign.
