Sustainability Management

Sustainability Ambition of the Continental Group

For Continental, sustainability means doing the right thing for people and our planet while driving innovation and business success.

In our group-wide sustainability ambition, which was updated in fiscal 2025, we outline how Continental intends to shape change in the key sustainability areas of people, climate and nature to reduce negative impacts, strengthen positive impacts, seize transformation opportunities and reduce transformation risks. The ambition provides the overarching framework for existing management approaches, strategies, programs, processes and targets, as well as their ongoing development.

The specific management approaches, strategies, programs, processes and targets are presented in a separate dedicated part of this management report, the sustainability report, starting on page 93. The entire ambition can be found online at www.continental.com under Sustainability.

Responsibility and Management

The Sustainability Steering Committee of the Continental Group is responsible for assessing cross-functional issues, weighing opportunities and risks and aligning on relevant Executive Board decisions in advance. In fiscal 2025, it consisted of the entire Executive Board, the Group Sustainability group function and other functions at the group and group sector levels. The committee is managed by Group Sustainability.

The Executive Board, senior executives and executives worldwide are evaluated based on progress made on specific sustainability metrics. Long-term remuneration components (long-term incentive – LTI) are linked to sustainability matters, among other factors. Short-term remuneration (short-term incentive – STI) may also include sustainability matters. A sustainability metric has been included in the STI since 2024. For the LTI, new tranches are launched each year. At the beginning of each tranche’s term, the sustainability metrics used in that tranche are defined. The sustainability metrics used may differ between tranches.

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

Further information on sustainability metrics and their collection can be found in the sustainability report.

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

Intangible Resources

Intangible resources are a key basis for value creation at Continental 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:

• Management processes, production methods and processes
  Continental has developed various business models to be successful in the market. These business models are managed through systematic processes. In our business models, we also rely on established and innovative production methods and processes. For more information, please refer mainly to the Corporate Management and Strategy of the Continental Group sections in the corporate profile, the Development of the Group Sectors section in the economic report and the corporate governance statement pursuant to Sections 289f and 315d HGB.
• Relationships with customers, suppliers and investors
  Continental is part of a global value chain that depends on cooperation. As a tire manufacturer and 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 semifinished 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, trust-based 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 in the corporate profile.
• Employees and corporate culture
  Our employees 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. 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.
• Innovative strength
  Continental’s research and development activities and its resulting innovative strength are a driver of success in constantly changing markets. For more information, please refer mainly to the Strategy of the Continental Group and Research and Development sections in the corporate profile and also to the consolidated financial statements, particularly Note 13 on goodwill and other intangible assets.

Additional comprehensive information on sustainability-related intangible resources, the associated management approaches, interdependencies, impacts, risks and opportunities can be found in the sustainability 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 2025 can be found in the sustainability report, which constitutes a separate part of this management report.

The sustainability report contains, in a separate section, the information that needs to be disclosed for fiscal 2025 in accordance with Art. 8 of EU Taxonomy Regulation (EU) 2020/852 in conjunction with Art. 10 (2) of Delegated Regulation (EU) 2021/2178.