Škoda Auto Sustainability Report

In the coming years, many companies across the EU will be required to report their non-financial data under the new European Corporate Sustainability Reporting Directive (CSRD). The CSRD aims to increase corporate transparency on sustainability, bringing non-financial reporting on par with financial reporting. The reporting of non-financial data will also be subject to mandatory auditing.

The first wave of reporting for the 2024 financial year will apply to the largest companies that have already had to report non-financial information. The second wave of reporting for the 2025 financial year will be crucial, when the number of obliged entities will be significantly expanded. All companies that meet at least two of the following three conditions will have to prepare a sustainability report:
- more than 250 employees;
- turnover of more than EUR 40 million;
- total assets over EUR 20 million.

The third wave, the publication of the report for the financial year 2026, will include listed small and medium-sized enterprises (SMEs), i.e. those whose shares are traded on the stock exchange.

Companies are already starting to prepare for mandatory reporting under the new CSRD. One of them is Škoda Auto, which has decided to prepare its new report in full compliance with the new reporting standards - European Sustainability Reporting Standards (ESRS). BDO's ESG team has guided Škoda Auto through the entire process, from the initial training on the information needed to prepare the report to the report production, including graphic design. The report in English can be viewed HERE.

The experience of preparing the report shows the importance of setting up the right ESG management processes and organising the data collection system. In addition to preparing the report itself, we helped Škoda Auto to identify gaps in the reporting process according to the new ESG reporting requirements and to streamline the overall reporting process. The company will thus be better prepared to produce the report for the following period - both in terms of efficiency and added value to the report users.

The reporting process helps companies better perceive and understand new risks due to climate change and new market needs, and ultimately improves the ability to survive and grow the business in changing conditions. Each business is specific and sensitive to different risks. That is why we work with each client to identify those topics that are relevant to them. For example, water scarcity will be a key issue for some clients, for others the cost of pollution or waste, and for many the cost of energy.  

The management of ESG risks and opportunities and the disclosure of related non-financial information are not only legislative requirements but are also linked to ensuring business continuity. Therefore, companies that are transparent and become more resilient as a result of continuous improvement in ESG will have an advantage over business partners, investors and financial institutions.