Sustainability Management

Sustainability Ambition of the Continental Group

Sustainability is a driver of innovation for Continental during the current transformation of mobility and industry, and is thus firmly anchored in its corporate strategy in the cornerstone of “turning change into opportunity.” Sustainability is also a key component in our vision of “CREATING VALUE FOR A BETTER TOMORROW.”

In the Continental Group’s sustainability ambition, we describe how we want to shape this transformation in the relevant topic areas with respect to sustainability in order to reduce negative impacts and strengthen positive effects, seize transformation opportunities and mitigate transformation risks. Along with the relevant guidelines, this ambition constitutes the framework for existing management approaches, strategies, programs, processes and targets, as well as their further development. In our four focus areas of sustainability, we are committed to strong, visionary ambitions, which we want to achieve by 2050 at the latest, together with our partners along the value chain:

• Carbon neutrality
  We strive for 100% carbon neutrality along our entire value chain (products, operations and supply chain).
• Emission-free mobility and industry
  We strive for 100% emission-free mobility and industry. “Emission-free” refers to zero emissions of greenhouse gases and nitrogen oxides (NOx), for example. It does not include harmless emissions such as steam, non-toxic, biodegradable particle emissions or minimal noise emissions.
• Circular economy
  We strive for 100% closed resource and product cycles.
• Responsible value chain
  We strive for 100% responsible sourcing and business partnerships along the value chain.

The specific management approaches, strategies, programs, processes and targets are presented in a separate dedicated section of this management report, the sustainability report, starting on page 95. The entire ambition can be found on our website at www.continental-sustainability.com.

Responsibility and Management

The Sustainability Steering Committee of the Continental Group is responsible for assessing cross-functional issues, weighing up opportunities and risks and discussing relevant Executive Board decisions in advance. In fiscal 2024, it consisted of the entire Executive Board, Group Sustainability and other functions at group and group-sector level. The committee is chaired by the Executive Board member for Group Human Relations (director of Labor Relations) and Group Sustainability and managed by the head of the Group Sustainability group function.

The Executive Board, senior executives and executives worldwide are measured against progress made using specific sustainability indicators. Long-term remuneration components are thus also linked to sustainability aspects. The long-term incentive plans (LTI plans) are updated on an annual basis, meaning the sustainability indicators used for the plans differ. In addition, a sustainability indicator was integrated into short-term remuneration for 2024. The indicators used thus formally represent the remuneration-related, management-relevant indicators relating to sustainability.

For detailed information on the remuneration system, see the remuneration report on our website under Company/Corporate Governance/Executive Board.

Further information on sustainability indicators and their collection can be found in the sustainability report in a separate section of this management report.

The most significant key performance indicators for the Continental Group consist of financial indicators and can be found in this management report: in the Corporate Management section of the corporate profile and in the Outlook for the Continental Group section of the report on expected developments.

Intangible Resources

Intangible resources represent a crucial foundation for Continental’s value generation and are therefore essential to its business model. A number of high-value, non-financial factors are considered to be intangible resources. These are also partially recognized in the consolidated financial statements and include in particular:

• Innovative strength
  Continental’s research and development activities and the resulting innovative strength are a driver for success in constantly changing markets. For more information, please refer mainly to the Strategy of the Continental Group and Research and Development sections and also to the consolidated financial statements, particularly under goodwill and other intangible assets.
• Management processes, production methods and processes
  Continental has developed various business models to be successful in the market. The management of business models is based on systematic management processes. In our business models, we are also able to rely on established and innovative production methods and processes. For more information, please refer mainly to the Corporate Management, Strategy of the Continental Group and Development of the Group Sectors sections and the corporate governance report.
• Relationships with customers, suppliers and investors
  Continental is part of a global value chain that depends on cooperation. As a supplier to the automotive industry and many other sectors, customers and their requirements are at the center of Continental’s business models. In this regard, customer proximity, also in the geographical sense, is one of the company’s key strengths. Continental processes a wide range of raw materials and semi-finished products to manufacture its innovative products and solutions, which it sources from a global network of suppliers. This makes close and stable relationships with suppliers an equally important aspect of our business. As a listed company funded through the financial markets, trustful collaboration with investors and lenders is also a valuable asset and a prerequisite for the company’s long-term success. For more information, please refer mainly to the Structure of the Continental Group, Strategy of the Continental Group and Corporate Management sections.
• Employees and corporate culture
  Around 190,000 employees worldwide are the foundation for the company’s success while also forming the backbone of other intangible resources such as innovative strength and relationships with customers, suppliers and investors. Healthy, qualified and motivated employees as well as good working conditions are therefore crucial for the company’s performance. Additional comprehensive information on employee-related intangible resources can be found in the sustainability report in a separate section of this management report. Continental’s corporate values define a successful corporate culture. The globally applicable Code of Conduct provides binding guidance for the behavior of every employee. We measure the success of implementation against, among other things, the OUR BASICS Live Sustainable Engagement index, which is calculated on the basis of the annual employee survey. The index measures employee agreement on topics such as whether they personally support the company values and whether they are proud to work for Continental.

Additional comprehensive information on sustainability-related intangible resources, the associated management approaches, interdependencies, impacts, risks and opportunities can be found in the sustainability report in a separate section of this management report.

Reference to the Combined Non-Financial Statement

The combined non-financial statement in accordance with Sections 315b and 315c in conjunction with Sections 289b to 289e of the German Commercial Code (Handelsgesetzbuch – HGB) for the Continental Group and Continental AG for fiscal 2024 can be found in the sustainability report, which constitutes a separate section of this management report.

The sustainability report contains, in a separate section, the information that needs to be disclosed for fiscal 2024 in accordance with Art. 8 of EU Taxonomy Regulation (EU) 2020/852 in conjunction with Art. 10 (2) of Delegated Regulation (EU) 2021/2178.