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SUSTAINABLE DEVELOPMENT

Introduction

ŠKODA AUTO advocates putting economic and social development into line with ecosystem capacities and the preservation of natural values and biodiversity for present and future generations. ŠKODA´s Sustainability Strategy is built on the social, economic and environmental pillars. These pillars include the CSR strategy, Green Future environmental strategy and principles of ethical and transparent behavior.

The company's top management is regularly informed about the state of sustainability management in the company. ŠKODA AUTO publishes a Sustainability report every two years from 2007 about its activities in this area. In 2017, the sixth report for 2015/2016 was published, which is governed by internationally recognized standards GRI (Global Reporting Initiative).

Environmental protection

Despite increasing production more than threefold since the 1991 merger with VW, ŠKODA AUTO has not increased the absolute strain it places on the environment. On the contrary, some indicators, including water consumption and air pollution emissions, have dropped significantly. This has been achieved by major investment in environmental protection, channelled mainly into the modernisation of energy sources, the construction of top-class bodywork paint shops and wastewater treatment facilities, and soil and groundwater protection, and the implementation of energy-saving measures.

ŠKODA minimises the impact that its operations will have on the environment in the longer run. The ISO 14001 audit has proved that corporate policy obligations, including legal requirements, are being fulfilled. ŠKODA AUTO is thus making headway in the pursuit of sustainable development. In the refinement of its internal systems, ŠKODA AUTO has been EMS (energy management system) certified in accordance with ISO 50001.

Certification

The efficiency and suitability of the integrated management system is checked annually in an audit conducted by an external certified company. Adherence to the requirements of the international ISO 9001, ISO 14001 and ISO 50001 standards is documented by valid certificates issued by an accredited certifying authority (ŠKODA has yet to be certified as ISO 27001 compliant).

The ISO 9001 quality management system certificate is one of the conditions for the car type approval required by the EU’s lawmakers and the majority of other markets where we distribute cars. We are not allowed to sell our cars without type approval and a valid certificate.

EnMS Energy Management System

The primary goal of the EnMS is to follow through on commitments made under corporate policy and to implement measures necessary to reduce the energy requirements of buildings, machinery and facilities. The introduction of the international standard should result in reduced greenhouse gas emissions and other related environmental impacts. An added benefit is the cut in energy costs.

EMS Environmental Management System – EMS

The ŠKODA AUTO environmental management system, certified in accordance with EN ISO 14 001:2004, is part of the Integrated Management System. EMS covers the following activities at the plants in Mladá Boleslav, Kvasiny and Vrchlabí:

• the development, manufacture, sale and service of motor vehicles, components and tools;

• CKD/SKD vehicle manufacture and shipping; the sale of genuine spare parts and accessories.

Quality Management System – QMS

The QMS audit is an evaluation of the compliance of actual practices with the requirements for a quality management system defined by ISO 9001 and VDA 6.1 and 6.4, as described in the IMS manual and related documentation. The QMS audit is also a component of IMS audits.

Policy

ŠKODA AUTO’s company policy is a statement from the senior management on the intentions and principles based on the corporate strategy. The principles relate to quality, environmental protection, information security and occupational health and safety.

Company Policy of ŠKODA AUTO