Sustainability Report – Social Information

Material Impacts, Risks and Opportunities Related to Consumers and End-Users

Continental assessed its actual and potential negative and positive impacts as well as abstract and tangible risks and opportunities related to consumers and end-users 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 consumers and end-users were identified. For easier understanding and reading, they have been grouped together into the following IRO clusters:

• Technical (product-related) compliance
• Safe mobility

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 respective IRO cluster. They also outline the management approach developed for each IRO cluster, which manages the identified impacts, risks and opportunities. In addition, the associated targets, actions and metrics are explained (where available).

Technical (Product-Related) Compliance

Material impacts, risks and opportunities in the technical (product-related) compliance IRO cluster

ID		Short description	Type of IRO		Primary time horizon			Explanation
62		Negative impacts on the personal safety of consumers	Potential negative impact		Short-term			Continental’s portfolio includes products that are relevant to user safety. These include tires as well as other safety-relevant components such as air springs and industrial high-pressure hoses used in vehicles or machines. This results in a material portfolio-inherent potential for negative impacts on the personal safety of consumers and end-users in the event of malfunctions or failures.
63		Loss of sales in connection with product safety	Abstract risk		Medium-term			Continental’s portfolio includes products that are relevant to user safety. Safety is therefore a key purchase criterion and subject to product-specific regulations and market requirements. This results in a portfolio- and industry-inherent exposure to changes in the regulatory environment and market requirements. If significant developments in safety requirements were to evolve faster than the respective products can be adapted, this could adversely affect market positioning and lead to sales losses in the affected product segments.
64		Sanctions in connection with incidents regarding product safety	Abstract risk		Medium-term			Continental’s portfolio includes products that are relevant to user safety. Safety is therefore a key purchase criterion and subject to product-specific regulations and market requirements. This results in a portfolio- and industry-inherent exposure to possible effects that may arise from the existing regulatory environment and market requirements, as well as significant tightening or new requirements. In the event of severe incidents related to the safety of consumers and end-users, this could lead to fines and penalties, remediation costs or temporary interruption of the respective business operation under current or tightened regulations as well as contractual requirements.

 

Management approach for technical (product-related) compliance

Continental is convinced that global mobility and industries need to be safe for people and therefore provides reliable and safe tire and industry solutions. Technical (product-related) compliance is essential for this purpose. This means that products (system, hardware, software and/or services) comply with the specifications placed on them and meet the applicable mandatory product requirements. Technical compliance obligations are generally defined in statutory technical regulations, external standards (national/international), applicable internal rules, contractually agreed technical customer requirements and Continental’s externally communicated product-related commitments.

The main objective of Continental’s management approach for technical compliance is to safeguard the technical compliance of our products, including systems, hardware, software and/or services. Five categories of technical compliance are considered:

• Product safety;
• Product conformity;
• Product environmental compliance;
• Product cybersecurity and privacy;
• Intellectual property.

At the same time, the management approach aims to protect Continental and its employees from possible negative consequences and risks, particularly with regard to product safety, that may entail a deviation from technical compliance. To safeguard technical compliance in all five categories, Continental has established a technical compliance management system (tCMS) as a binding set of rules integrated into its overall management system.

The management approach covers the Continental Group worldwide as well as the entire product life cycle and all related functions. It therefore includes all Continental products and services and indirectly all consumers and end-users of these products and services.

Continental’s governance and responsibilities for technical compliance follow the Three Lines Model. In the first line, responsibility for execution lies with the operational functions at the level of the group sectors, business areas, legal entities, plants and other locations. These operational functions include research and development (R&D), engineering, sales, purchasing, manufacturing, after-sales and marketing. In the second line, the governance framework is defined and operational oversight is exercised by technical compliance functions and roles, for example within quality, intellectual property and R&D. The third line is the independent internal audit function. The management approach is overseen by the Executive Board. Each line performs specific tasks, has explicit responsibilities and is assigned to different organizational areas. Independence is safeguarded through organizational separation between the lines.

The tCMS within Continental comprises a wide range of processes related to technical compliance (tC):

• tC case management, which deals with tC problems that occur when the product is in the field, i.e. already in use or no longer under the management control of Continental. It includes the identification of tC problems, their initial assessment, analysis, mitigation, prevention of recurrence, case closure, lessons learned and post-completion audits.
• tC clearing management, which deals with tC problems that occur before the product is in the field or while it is still under the management control of Continental.
• Identification and implementation of tC obligations, a defined process for identifying our technical compliance obligations, i.e. mandatory requirements for Continental’s products and services, and providing these requirements in a traceable form for implementation.
• tC risk management for determining tC risks and ensuring their management and monitoring throughout the entire product life cycle.
• tC business partner integrity management to ensure the technical compliance of suppliers, other third-party providers as well as minority holdings of Continental, including associates and joint ventures without management control which supply materials or components for use in Continental’s products, and providers of goods and services.
• tCMS monitoring and reporting to ensure that the tCMS is adequately monitored and that tC-related information is collected, documented, communicated and made available to the relevant stakeholders at all organizational levels.

The implementation of the tCMS was completed during the reporting year in close collaboration across the Continental Group, including all group sectors, business areas, segments, functions and regions. It is now fully operational across Continental. Central tCMS teams facilitate that all categories and aspects are covered and synergies are realized.

The metrics related to consumers and end-users “quality management system certifications (ISO 9001 or similar), employee coverage” and “number of new field quality events” track Continental’s efforts to maintain technical and product compliance.

As part of an annual review process, the Executive Board of Continental is updated on the current status of the tCMS and decides on the system’s adequacy and potential for improvement. Furthermore, the tCMS is integrated into Continental’s overarching internal control system, risk management system and compliance management system.

The tCMS is documented in a dedicated internal rule. Additional internal rules relevant for technical compliance cover in particular specific design standards and testing procedures.

The tCMS was developed on the basis of industry standards such as IDW Assurance Standard 980 and ISO 37301. Continental’s technical compliance standards focus on compliance with legal technical regulations (LTRs) as well as applicable national and international standards (NIS) related to product safety, product conformity, product environmental compliance, product cybersecurity and privacy, and intellectual property. The standards also consider contractually agreed technical customer requirements, including compliance with relevant legal technical regulations, external norms and internal rules as binding product requirements. Examples include specific product certifications and material or emission limits that apply to entire systems, such as complete vehicles.

Stakeholder interests in the context of technical compliance are largely addressed indirectly through comprehensive regulatory and normative requirements. This also includes the interests of consumers and end-users. Consumers or end-users of Continental’s products and services are typically those who use vehicles equipped with tires or other components and systems supplied by Continental. In the industrial environment, various types of industrial workers may directly or indirectly use equipment containing Continental components and systems. However, Continental’s most important direct stakeholders with regard to technical compliance are vehicle manufacturers, tire dealers, industrial customers and authorities, in line with Continental’s role as a supplier. Close dialogue with these stakeholders is a key element of the management approach.

Continental communicates its management approach externally and internally. The employees responsible are trained in technical compliance. There are also numerous further communication formats (such as open calls) to promote the management approach.

Metrics related to technical (product-related) compliance

Certification of Continental plants for implemented quality management systems (ISO 9001 or similar) was continued in the reporting year. The share of employees covered by such certifications reached 76% at the end of the year (PY: 85%). The decline was mainly due to the spin-off of the former Automotive and Contract Manufacturing group sectors.

The number of new field quality events decreased slightly compared with the previous year. The relieving effect of the spin-off of the former Automotive and Contract Manufacturing group sectors was virtually offset by an increase in field quality events in the Tires and ContiTech group sectors.

Metrics related to technical (product-related) compliance	2025	2024
Quality management system certifications (ISO 9001 or similar), employee coverage (as of December 31), in %	76	85
Number of new field quality events (as of December 31)	16	17

Definitions, assumptions and calculation methods:
Quality management system certifications (ISO 9001 or similar)

• Includes employees of the Continental Group with a valid and active employment contract as well as non-employees as of December 31 of the respective reporting year. Interns and trainees are not included.
• Includes valid certifications and completed recertifications as of December 31 of the respective reporting year.
• The data is collected by the locations. A small number of employees who could not be assigned are considered not to be covered. The metric is calculated from the ratio of own workforce working at a certified location to the total number of Continental’s own workforce.
• The metric is entity-specific.

New field quality events

• A field quality event is defined as a risk-minimizing measure initiated by Continental, a customer and/or an authority based on a safety-related deficiency and/or non-compliance with regulations.
• As the corresponding product is usually already in use by end-users, it is typically referred to as being “in the field”.
• The metric is entity-specific.

 

Safe Mobility

Material impacts, risks and opportunities in the safe mobility IRO cluster

ID		Short description	Type of IRO		Primary time horizon			Explanation
65		Positive impacts on the personal safety of consumers	Actual and potential positive impact		Short-term			Continental’s portfolio includes a wide range of products that actively contribute to the safety of mobility and in various industries, and can therefore have a positive impact on the personal safety of consumers and end-users, for example by preventing overheating, instability or leaks. In addition, the above-average performance of Continental tires with regard to safety-relevant criteria, for example wet braking, creates an actual positive impact.

 

Management approach for safe mobility

Continental is convinced that global mobility and industries need to be safe for people. To this end, we provide reliable and safe tire and industry solutions that help prevent accidents. This commitment is deeply rooted in our corporate culture and reflected in our portfolio of safety-related products (in particular tires, tire pressure monitoring systems, and sealing and suspension components). The identified material positive impact relates to the importance of these Continental products for the personal safety of consumers and end-users while driving or in other traffic situations. The focus of Continental’s management approach for safe mobility is therefore on the development and provision of safety-relevant products that actively contribute to safety in various mobility, infrastructure and industrial sectors.

In general, the management approach covers Continental’s entire portfolio, but is geared especially toward safety-related products. It encompasses all consumers and end-user groups rather than targeting a specific group.

Safety-related products primarily include the following:

• Tires are the only point of contact between a vehicle and the road. In critical situations, the tire often determines whether the vehicle stops in time or stays safely on course through a corner. The performance of a tire is therefore directly related to braking behavior. Tire pressure monitoring systems continuously monitor air pressure, enhancing both safety and efficiency.
• The ContiTech group sector develops and supplies a range of sealing and suspension components for hydraulic, pneumatic and electronic brake systems. Since they are used in safety-relevant systems, they are essential for the functional reliability of a vehicle.

Product portfolio management and adjustments are handled by the responsible business units. Oversight of the effectiveness of the portfolio management is exercised by the group sector boards and the Executive Board, for example as part of the strategy process. Key processes are managed by the respective departments within the business operations, such as research and development (R&D), product design, supply chain management and purchasing, with support from the sustainability departments.

Processes related to safe mobility include R&D activities within Continental’s group sectors, close collaboration with customers (especially vehicle manufacturers from the early stages of tire development), active portfolio management and market monitoring. R&D activities also involve extensive safety and stress testing of new products at our test facilities and on internal and external test tracks. Continental additionally researches and develops new materials and technologies for safe mobility. Product development processes include assessing economic feasibility, market readiness and scalability, frequently in collaboration with customers, suppliers and other institutions such as universities.

Elements of the management approach are set out in corresponding internal rules and frameworks.

The management approach for safe mobility does not directly follow external standards but is closely linked to the management approach for technical (product-related) compliance, for example regarding tire labels that inform consumers and end-users about properties such as rolling resistance, wet braking performance and external noise.

Consumers and end-users of Continental’s products and services are typically those who use vehicles equipped with tires or other components and systems supplied by Continental. The interests of consumers and end-users are the key drivers of Continental’s management approach. Their expectations and concerns regarding personal safety, reliability, comfort, convenience and cost efficiency are relevant not only to Continental but also to its business partners.

Engagement with consumers and their representatives takes place through various formats, including direct contact in retail outlets within own tire trade activities, regular surveys and trade fairs. Understanding these interests helps Continental develop and market products and systems that meet the needs and expectations of consumers and end-users. Continental’s whistleblowing channels such as the integrity hotline are open to consumers and end-users as well.

Continental actively communicates about safe mobility through various formats, including social media and public advocacy efforts, to improve awareness of safe mobility. Internal engagement also includes a variety of formats.