Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance and corporate culture
• Employees and society
• Environment
• Products

Environmental Achievements

• Specific energy consumption decreased by -1.3% compared to 2013 (primarily due to initial environmental data from a major acquisition)
• Specific CO2 emissions decreased by -1.0% compared to 2013 (primarily due to initial environmental data from a major acquisition)
• Achieved target of recording Scope 3 emissions
• Waste recycling rate of 79% compared to 2013 (primarily due to initial inclusion of environmental data from a major acquisition)
• Specific water consumption decreased by -1.5% compared to 2013 (primarily due to initial inclusion of environmental data from a major acquisition)

Social Achievements

• Share of female management personnel increased to 12.2%
• Age stability rate of production positions in Germany increased to 45.6%
• Global documentation and improvement of the ergonomic quality of 50% of jobs worldwide
• Worldwide fluctuation rate reduced to 4.7%
• All employees had an individual employee development meeting with their manager (96% participation)

Governance Achievements

• 100% of suppliers provided proof of acknowledgment of the Code of Conduct
• Regular implementation of e-learning programs
• Risk-based in-person training (11,681 participants)

Climate Goals & Targets

Environmental Challenges

• Additional regulations restricting car traffic
• Production cutbacks due to changing climatic conditions
• Bottlenecks in raw material availability
• Extreme weather and natural disasters causing production downtimes or supply chain interruptions
• Rapid consumer behavior changes due to higher oil prices

Mitigation Strategies

• Increasing use of recycled materials
• Developing products to reduce CO2 emissions
• Developing efficient injection systems and coolant pumps
• Orienting R&D towards fuel-efficient products
• Developing a substitution plan to avoid or reduce the use of climate-damaging refrigerants

Supply Chain Management

Supplier Audits: Automotive Group: 92; Rubber Group: 61

Responsible Procurement

• Supplier Code of Conduct (since 2011), supplier assessments, plant visits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Additional regulations restricting car traffic, changing consumer behavior

Opportunities

• Shortage of natural resources, additional legal regulations to reduce CO2 emissions, rising energy taxes, introduction of eco-labels, hybrid vehicle technology

Reporting Standards

Frameworks Used: GRI (Core option)

Certifications: ISO 9001, ISO TS 16949, OHSAS 18001 (at 32 locations)

Third-party Assurance: Limited assurance by an independent auditor

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight brake components, tires with lower rolling resistance, piezo injection valves, telematics systems, energy-optimized conveyor belts, Conti Thermo-Protect insulation, Taraxagum (natural rubber from dandelions)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economy
• Environment
• Employees
• Society

Environmental Achievements

• Reduced specific energy consumption by roughly 4.2% to 784 GJ per million € of adjusted sales (PY: 819 GJ)
• Reduced specific CO2 emissions by 3.2% to 730 (100 kg/€ million in adjusted sales)
• Increased waste recycling rate to 81%
• Reduced specific water consumption from 480 to 456 m3 per € million of adjusted sales
• Reused 358,584 m3 of water

Social Achievements

• Increased share of female management personnel to 13.4% (Executives: 14.1%, Senior Executives: 7.5%)
• Age stability rate of production positions in Germany increased to 52.4% (2016: 45.6%)
• 64% (2016: 50%) of production employees covered by global documentation and improvement of the ergonomic quality of jobs in production
• In 18 countries, employees can now configure their ways of working more individually
• Absence rate of 3.2%
• Roughly 80,000 employees (= 95.7%) of the employees in the new system have had an individual employee development meeting with their manager

Governance Achievements

• 100% of suppliers provided proof of acknowledgment of the Code of Conduct
• Roll-out of a refresher training course in antitrust law; roughly 97% of 57,244 invited existing employees completed the course
• 96% of 22,035 invited new employees completed eLearning programs in antitrust law and corruption prevention
• 6,586 participants took part in 257 in-person training sessions worldwide on general compliance, anti-trust law, and corruption prevention

Climate Goals & Targets

Environmental Challenges

• Increased absolute energy consumption due to increased production and acquisitions
• Increased absolute CO2 emissions due to increased production volume and new products
• Fluctuation rate of 5.7%
• Economic risks growing considerably, impacted by factors affecting free trade (unequal tariffs)

Mitigation Strategies

• Implementation of energy management systems and energy-saving campaigns
• Defining purchase criteria for energy efficiency for machine procurement and new building construction
• Development of requirements for monitoring energy data
• Implementation of 567 energy efficiency projects
• Investments in CO2 reduction projects (€47 million)
• Development of a new organizational structure in the sustainability area and a new strategy for social commitment
• Initiation of programs to reduce solvent emissions
• Initiation of programs to achieve goals for renewable energy

Supply Chain Management

Supplier Audits: 72 audits in Automotive Group, 73 in Rubber Group, 45 audits at new production sites in Rubber Group; 640 suppliers assessed for sustainability.

Responsible Procurement

• Supplier Code of Conduct (updated in 2017), Business Partner Code of Conduct
• Due diligence reviews for suppliers of non-production materials
• Sustainability assessments based on international CSR standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme fluctuations in temperature and natural disasters resulting in production downtimes or supply chain interruptions

Transition Risks

• Additional regulations restricting car traffic, leading to decreased demand for Continental’s products

Opportunities

• Shortage of natural resources driving demand for recycled materials; new legal regulations to reduce CO2 emissions; rising energy taxes increasing demand for fuel-efficient products; introduction of eco-labels; hybrid vehicle technology

Reporting Standards

Frameworks Used: GRI (Core option)

Certifications: ISO 9001, ISO TS 16949 (at locations with environmental impact), OHSAS 18001 (at 39 locations)

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (for compliance management system in 2016); KPMG AG (for non-financial report in 2017)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Taraxagum (natural rubber from dandelions); energy-efficient brake components; tires with lower rolling resistance; piezo injection valves; telematics systems; energy-optimized conveyor belts; Conti Thermo-Protect insulation

Awards & Recognition

• EU-OSHA Best Practice Award (2017)

Environmental Metrics

ESG Focus Areas

• Clean mobility
• Sustainable supply chains
• Climate protection
• Circular economy
• Innovation
• Digitalization
• Road safety
• Fair working conditions

Environmental Achievements

• Improved specific performance indicators by 3% for energy, 2% for CO2, and 5% for water compared to 2013. Over 200 major production and development locations were certified according to ISO 14001.
• Developed “Cokoon” – a new environmentally friendly bonding system for textile reinforcing materials as open source technology.

Social Achievements

• Increased number of employees worldwide by 3% to 243,226.
• Held talent management conferences for over 80,000 salaried employees.
• Increased efforts to make work more flexible in 21 largest countries.
• Launched the “Stop the Crash” global information campaign to improve road safety.

Governance Achievements

• Established a global compliance organization to prevent corruption and antitrust violations.
• Conducted compliance training for approximately 85,000 employees online and in 360 classroom sessions.

Climate Goals & Targets

Environmental Challenges

• Increased absolute values for energy use, CO2 emissions, waste generation, and water demand due to company growth.
• Fluctuations in raw material prices.
• Risks associated with global financial and economic crisis, cyclical industry, market trends, tariffs, and product liability claims.

Mitigation Strategies

• Implemented 593 energy efficiency projects resulting in energy savings and CO2 emission reductions.
• Developed a concept for water risk areas to address water shortages and quality issues.
• Implemented a corporation-wide internal control and risk management system.

Supply Chain Management

Supplier Audits: Over 750 suppliers with valid self-disclosures on Ecovadis and NQC platforms (over 60% completion rate).

Responsible Procurement

• Business Partner Code of Conduct
• Continental Sustainable Natural Rubber Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in legal framework regarding fuel consumption and emission standards

Opportunities

• Intensified trend toward vehicle electrification

Reporting Standards

Frameworks Used: GRI Standards (Core level), UN Global Compact

Certifications: ISO 14001 (environmental management), ISO 50001 (energy management), IATF 16949 (quality management)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Various initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Virtual A-pillar
• EcoContact 6 tire
• Super Clean Electrified Diesel
• People’s hybrid
• Electronic air spring damping solution

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Protection
• Clean Mobility
• Circular Economy
• Sustainable Supply Chains

Environmental Achievements

• Reduced total own CO2 emissions (Scope 1 and 2) to 3.22 million metric tons from 3.35 million metric tons in 2018.
• Increased waste recycling rate to 80% from 78% in 2018.
• Electricity from renewable energy sources accounted for around 5.3% of all electricity purchased.

Social Achievements

• OUR BASICS Live Sustainable Engagement increased to 81% from 80% in 2018.
• Sickness absence rate remained stable at 3.37%.
• Unforced fluctuation remained stable at 6.00%.

Governance Achievements

• Increased the proportion of women in management positions to 15.8% from 14.8% in 2018.
• Established the Automotive Board to foster decentralization of responsibility and shape transformation in the automotive sector.
• New compensation scheme introduced, linking long-term incentives (LTI) for Executive Board and management to key sustainability indicators.

Climate Goals & Targets

Environmental Challenges

• Declining global automotive production.
• Growing customer demand for digital solutions.
• Accelerated change in powertrain technology due to stricter emissions legislation.
• Increasingly digitalized working environment.
• Emerging crisis in the automotive industry.

Mitigation Strategies

• Launched the Transformation 2019-2029 structural program to increase efficiency and productivity.
• Planned to reduce gross costs by about €500 million annually from 2023.
• Spin-off of the Powertrain business area (Vitesco Technologies) to enable more independent, flexible, and efficient operation.
• Investing in employee training and qualification initiatives (CITT) to address skills shortages and enable transformation.

Supply Chain Management

Supplier Audits: 670 valid supplier self-assessment questionnaires available

Responsible Procurement

• Business Partner Code of Conduct
• Special sourcing policy for natural rubber

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in legal framework regarding fuel consumption, emission standards, and safety regulations.

Opportunities

• Development of energy-efficient products and systems.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives related to renewable energy, waste reduction, sustainable supply chains, and clean mobility contribute to these goals.

Sustainable Products & Innovation

• Electrified drive systems
• Lightweight design solutions
• Automated driving solutions
• Rolling-resistance-optimized tires
• ContiLifeCycle retread solutions
• Eco-friendly adhesive system (COKOON™)

Awards & Recognition

• 2020 European Transport Prize for Sustainability (ContiConnect)
• Gold “Green Plant Label Award” (Regensburg location)

Environmental Metrics

ESG Focus Areas

• clean mobility
• climate protection
• resource efficiency and circularity
• employer attractiveness
• occupational health and safety
• corporate responsibility and human rights due diligence
• diversity
• integrated sustainability management
• business ethics and anti-corruption

Environmental Achievements

• achieved 100% renewable energy in 2020

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• supply chain disruptions due to the COVID-19 pandemic and semiconductor shortages
• investigations concerning the use of illegal defeat devices in diesel engines

Mitigation Strategies

• implemented the Cash Agility Program (CAP Measures) to secure financial liquidity
• fully cooperating with public prosecutor’s offices in Hanover and Frankfurt/Main
• indemnification agreements to cover potential liabilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• Emission-free mobility and industries
• Circular economy
• Responsible value chain
• Good working conditions
• Green and safe factories
• Innovation and digitalization
• Benchmark for quality
• Safe mobility
• Long-term value creation
• Sustainable management practice
• Corporate citizenship

Environmental Achievements

• Switched reported energy supply to renewable energy in 2020, reducing total CO2 emissions by 70% compared to 2019.
• Waste recycling quota remained at 81% in 2021.

Social Achievements

• Launched Net|Zero|Now program to offer customers neutralization of Continental's business carbon backpack through negative emissions.
• Increased share of female executives and senior executives to 17.8% in 2021.

Governance Achievements

• Established a new ombudsman’s office in 2021.
• Linked long-term remuneration components (LTI) to sustainability aspects.

Climate Goals & Targets

Environmental Challenges

• Semiconductor shortage impacting sales growth, particularly in the second half of 2021.
• Supply bottlenecks and significantly higher prices for key input materials.
• Increased transport costs.

Mitigation Strategies

• Launched a task force to better respond to fluctuations on procurement markets.
• Optimized early warning systems and adapted purchasing structure.
• Building up safety stocks to bridge potential supply shortages.

Supply Chain Management

Supplier Audits: 631 valid supplier self-assessment questionnaires available as of Dec 31, 2021 (53% completion rate)

Responsible Procurement

• Business Partner Code of Conduct (updated in 2021), including requirements for human rights, working conditions, environmental protection, conflict minerals, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Sustainable Development Goals (SDG), TCFD, SASB

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC) - limited assurance on selected information

Sustainable Products & Innovation

• Conti GreenConcept tire, new TPO film, recycled display units

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• Emission-free mobility and industries
• Circular economy
• Responsible value chain
• Good working conditions
• Green and safe factories
• Innovation and digitalization
• Benchmark for quality
• Safe mobility
• Long-term value creation
• Sustainable management practice
• Corporate citizenship

Environmental Achievements

• Reduced total own CO2 emissions (Scopes 1 and 2) by 70% compared with 2019.
• Achieved 85% waste for recovery quota (PY: 81%).
• Reduced energy consumption by 4.0% year-on-year and 17.8% relative to group sales.
• Reduced water withdrawal by 6.2% compared with the previous year and 19.6% relative to group sales.

Social Achievements

• Maintained 80% OUR BASICS Live Sustainable Engagement index (PY: 80%).
• Maintained sickness rate at 3.7% (PY: 3.7%).
• Increased share of female executives and senior executives to 19.1% (PY: 17.8%).

Governance Achievements

• Increased number of available valid supplier self-assessment questionnaires to 1,009 (PY: 631).
• Implemented a comprehensive management system for ensuring due diligence within a responsible value chain.
• Introduced an internal price on carbon.

Climate Goals & Targets

Environmental Challenges

• Semiconductor shortage
• Supply chain disruptions due to the war in Ukraine and pandemic-related lockdowns in China
• Rising inflation rates and interest rate hikes
• Limited access to high-quality emission data from suppliers
• Cyberattack in August 2022

Mitigation Strategies

• Established Integrated Business Planning (IBP) unit to manage supply and demand planning.
• Implemented energy efficiency measures to reduce fossil fuel consumption.
• Implemented local projects to increase waste recovery.
• Improved data collection methods for Scope 3 emissions.
• Strengthened cybersecurity management.

Supply Chain Management

Supplier Audits: 1,009 valid supplier self-assessment questionnaires (63% completion rate)

Responsible Procurement

• Business Partner Code of Conduct
• Sustainable Natural Rubber Sourcing Policy
• Supplier self-assessment questionnaires via EcoVadis and NQC
• Local audits

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in business with zero-tailpipe-emission vehicles

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Sustainable Development Goals (SDG), TCFD, SASB

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC) - limited assurance on selected sustainability information

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tires containing polyester from recycled PET bottles
• Conti Urban concept tire with 50% renewable and recycled materials
• TPO film for automotive interiors with 30% recycled content
• skai VyP Coffee upholstery fabric made partly from recycled coffee grounds

Awards & Recognition

• Award for series production of semi-dry brake system

Environmental Metrics

ESG Focus Areas

• carbon neutrality
• emission-free mobility & industries
• circular economy
• responsible value chain
• human rights

Environmental Achievements

• 100% renewable purchased electricity by end of 2020 (RE100), reducing CO2 emissions by approx. 70%
• 95% waste recovery quota in own operations by 2030
• Reduction of water withdrawal per year based on sales in water stress high-risk areas by 4%, and in medium and low-risk areas by 2%
• Reduction of waste generation per year based on sales by 2%

Social Achievements

• Implementation of Responsible Value Chain Due Diligence System (RVCDDS) to protect human rights and the environment
• Commitment to fair payment, equal treatment, anti-discrimination, no forced labor, freedom of association, safe working conditions, and health and safety

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Water scarcity and water scarcity risks in the value chain
• Achieving carbon neutrality across the entire value chain by 2050
• Achieving 100% emission-free mobility and industry by 2050

Mitigation Strategies

• Risk-based targets for water security and a global framework for water programs
• Decarbonization Roadmap 2040 with systematic energy efficiency projects and substitution of fossil fuels
• Reduction levers for Continental's gross CO2 backpack (Scope 3) including circularity, material consumption optimization, and renewable energy use in the supply chain
• Reduction levers for customer and product use-related CO2 emissions (Scope 3) including rapid expansion of zero-tailpipe emission vehicles (ZTEV) and phase-out of combustion engine-related portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Value Chain Due Diligence System (RVCDDS)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Urban Taraxagum bicycle tire, Green Brake Caliper, MK C2 electrohydraulic integrated braking system

Awards & Recognition

• Not disclosed