Sustainability Report – Social Information

Material Impacts, Risks and Opportunities Related to Affected Communities

Continental assessed its actual and potential negative and positive impacts as well as abstract and tangible risks and opportunities related to affected communities according to the regulatory requirements, as described in the General Disclosures (ESRS 2) section. The general disclosures include an overview of the assessment of all identified impacts, risks and opportunities (IROs), including the time horizons considered.

In this IRO assessment, the material impacts, risks and opportunities related to affected communities were identified. Together, they form the following IRO cluster:

• Affected communities

The descriptions of potential negative impacts and abstract risks are presented from a business-inherent perspective. They outline general impact potentials and risk exposures based on structural aspects such as business activity, geographical aspects, business model and product characteristics. This does not take into account mitigation through the management approach of Continental described in the respective IRO cluster. Actual negative impacts, tangible risks, positive impacts and opportunities are described from a company-specific perspective and consider the outcomes of the management approaches. A detailed definition of the IRO types can be found in the Impact materiality and Financial materiality subsections in the General Disclosures (ESRS 2) section.

The descriptions of IROs are to be considered as self-contained, which may result in repetitions.

The following pages provide detailed descriptions of the IROs within the IRO cluster. They also outline the management approach developed for the cluster, which manages the identified impacts, risks and opportunities. In addition, the associated targets, actions and metrics are explained (where available).

Affected Communities

Material impacts, risks and opportunities in the affected communities IRO cluster

ID		Short description	Type of IRO		Primary time horizon			Explanation
59		Negative impacts of own operations on affected communities	Potential negative impact		Short-term			As a globally operating company, Continental maintains numerous production sites worldwide in diverse surrounding environments. This results in an inherent potential for negative impacts associated with production sites on communities and residents near these sites, particularly related to odors, unintended releases or waste treatment.
60		Negative impacts of the supply chain on affected communities	Potential negative impact		Short-term			Continental’s supply chain spans a wide range of industries across various stages of the value chain in different regions and markets. This results in an inherent, e.g. production site related, potential for negative impacts on communities and residents along the supply chain, particularly with regard to environmental protection issues.
61		Sanctions in connection with impacts on affected communities in own operations and in the supply chain	Abstract risk		Medium-term			As a globally operating company, Continental maintains numerous production sites worldwide in diverse surrounding environments and sources materials and semi-finished products from global supply chains spanning a wide range of industries across various stages of the value chain. This results in an inherent exposure to possible effects that may arise from existing regulations, significant tightening or new requirements related to the protection of communities and residents near Continental’s production sites or the supply chain. If severe violations were to occur and were linked to Continental, this could lead to fines and penalties, remediation costs or temporary interruption of the respective business operation under current or tightened regulations.

 

Management approach for affected communities

As Continental sources goods, materials and services from numerous industries along the value chain, this inherently has potential impacts on all types of affected communities. Communities living or working near Continental sites or near sites operated by companies in Continental’s supply chain are considered to be particularly affected. In both cases, this also includes indigenous peoples. Impacts on communities in the downstream value chain are not considered to be directly linked to Continental.

Continental’s approach to managing material impacts and risks that may also affect communities is covered by the following management approaches, which are described elsewhere in this sustainability report:

• Environmental protection in own operations with regard to potential impacts from pollution caused by own operations, see the Emissions and Substances (ESRS E2) section.
• Environmental protection in the supply chain with regard to potential impacts from pollution caused by suppliers, see the Emissions and Substances (ESRS E2) section.
• Substances of concern and very high concern with regard to potential impacts due to their use in own operations, the upstream value chain and the downstream value chain, see the Emissions and Substances (ESRS E2) section.
• Waste in own business operations with regard to potential impacts associated with the treatment and disposal of waste, see the Resource Use and Circular Economy (ESRS E5) section.
• Labor standards for own operations, including a detailed description of the responsible value chain due diligence system (RVCDDS) and processes for own operations, see the Own Workforce (ESRS S1) section. These also include the responsible value chain commitments (RVC commitments) related to land rights, including the rights of indigenous peoples, and responsible security practices.
• Workers in the value chain, including a detailed description of the RVCDDS and its processes for the supply chain, see the Workers in the Value Chain (ESRS S2) section.

In addition, Continental’s sites monitor and minimize non-toxic emissions that could potentially impact affected communities, such as odor emissions.

The focus of the management approaches and the RVCDDS in particular is on own operations and direct suppliers, and therefore on affected communities in their vicinity. Indirectly and occasion-related, the deeper supply chain is also taken into account. Specific elements of the RVCDDS, in particular the integrity system and the associated case management, are aimed directly at all affected communities along the value chain or their representatives.

The integrity system is explained in detail in the Business Conduct (ESRS G1) section of this sustainability report. The channels described are also explicitly open to members of affected communities or their representatives. The defined roles and responsibilities along the process steps of reporting, case review, investigation and sanctioning apply equally to cases submitted by them. There are no additional specific supplementary mechanisms for applying remedial measures for affected communities.

As part of the RVCDDS and the described RVC commitments, Continental commits to respect legitimate land rights throughout the entire life cycle of a property or other use of land, forests and water, especially where these secure people’s livelihoods.

With regard to responsible security practices, Continental commits to respect human rights when contracting or using its own, private or public security forces, providing adequate training and establishing appropriate control mechanisms.

The RVCDDS tools for prevention and remediation, communication, alignment with internationally recognized standards and system review, as described in the management approaches, include the company’s own workforce, workers in the value chain and affected communities.

Metrics related to affected communities

Continental did not receive any substantiated information with regard to tangible incidents of severe human rights violations related to affected communities in the reporting year.

No fines, penalties or compensation for severe human rights violations related to affected communities were paid in the reporting year.

Metrics related to affected communities	2025	2024
Total number of known incidents of severe human rights violations related to affected communities of Continental	0	0
Total amount of fines, penalties and compensation for severe human rights violations related to affected communities, in € millions	0	0

Definitions, assumptions and calculation methods:
Total number of known incidents of severe human rights violations related to affected communities of Continental

• The severity of incidents is assessed regularly as part of case management in the RVCDDS.
• The incidents mainly involve violations of environmental rights, security practices and land rights of affected communities.
• The data is collected through the various complaint mechanisms of the Continental Group. Includes severe incidents related to human rights that were reported in Continental’s systems during the reporting year and that involve a person belonging to Continental’s affected communities.
• This information represents Continental’s current state of knowledge and includes incidents for which Continental has substantiated information regarding the specific incidents.
• The metrics are entity-specific.

Total amount of fines, penalties and compensation for severe human rights violations related to affected communities

• Fines, penalties and compensation paid during the reporting year are included.
• Related expenses within the meaning of the ESRS are reported in the Consolidated Statement of Income of the Consolidated Financial Statements under “Other expenses”.