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Sustainability Report 2019

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Sustainability Report 2019 TRANS FORMATION 2019 INTEGRATED SUSTAINABILITY REPORT Continental AG Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2019, Continental generated sales of €44.5 billion and currently employs more than 240,000 people in 59 countries and markets. www.continental.com Continental AG 2019 Integrated Sustainability Report 3 Development of Material Sustainability Key Performance Indicators 2019 2018 Clean Mobility Percentage of products of consolidated sales that demonstrably contribute to energy efficiency or to the reduction of pollutant or carbon dioxide emissions 42 ~401 Climate Protection2 Direct CO2 emissions (Scope 1) in millions of metric tons of CO2 0.84 0.88 3 4 Indirect CO2 emissions (Scope 2) in millions of metric tons of CO2 2.38 2.47 4 Total own CO2 emissions (Scope 1 and 2) in millions of metric tons in CO2 3.22 3.35 Circular Economy5 Waste recycling rate in % 80 78 Sustainable Supply Chains6 Number of available, valid supplier self-assessment questionnaires (as at Dec 31, 2019) 670 > 750 Innovation and Digitalization R&D expenses (net) in € millions 3,364.2 3,209.0 in % of sales 7.6 7.2 Green and Safe Factories Environmental protection management system certifications (ISO 14001 or similar) Employees covered in % (as at Dec 31, 2019) 82 > 801 Energy management system certifications (ISO 50001 or similar) Employees covered in % (as at Dec 31, 2019) 49 ~ 501 Occupational safety management system certifications (ISO 45001 or similar) Employees covered in % (as at Dec 31, 2019) 69 ~ 671 Number of accidents per million working hours7,8,9 3.03 3.41 Good Working Conditions OUR BASICS Live Sustainable Engagement in % 81 80 Sickness absence rate in %7 3.37 3.27 Unforced fluctuation in %7 6.00 6.25 Product Quality Quality management system certifications (ISO 9001 or similar) Employees covered in % (as at Dec 31, 2019) 86 ~ 901 Corporate Governance10, 11 Proportion of women in management positions in % (as at Dec 31, 2019) 15.8 14.8 1 In 2018, not reported as key figures but as indicative, rounded statement in the text. 2 Based on the reporting on the environmental data collection system that includes the relevant production and research and development locations (not including fleet consumption). Definitions based on the standards of the Global Reporting Initiative (GRI) and in accordance with the Greenhouse Gas (GHG) Protocol. 3 Scope 2 emissions are calculated on the basis of reported energy use using the location-based method of the GHG Protocol and largely by applying emission factors from Defra (January 2019) and IEA (May 2018). 4 Figure for 2018 was recalculated due to an adjustment in the application of the location-based method of the GHG Protocol. 5 Based on the reporting on the environmental data collection system that includes the relevant production and research and development locations. Definitions based on the standards of the Global Reporting Initiative (GRI). 6 Based on the self-assessment questionnaires via EcoVadis and NQC. 7 Permanent staff only (own employees). 8 Counted from more than one lost day, i.e. with at least one lost day beyond the day of the accident. 9 Excluding Continental Tire Sales (approx. 2% of the total workforce). 10 Based on the employees recorded in the HR data system (approx. 97%). 11 Relates to executives and senior executives. Continental AG 2019 Integrated Sustainability Report 4 Contents Development of Material Sustainability Key Performance Indicators ....... 3 To Our Stakeholders ....................................................................................................... 5 Report Profile ................................................................................................................... 6 About Continental........................................................................................................... 8 Structure of the Corporation .................................................................................................................................. 8 Corporate Strategy.................................................................................................................................................. 12 Development of Material Sustainability Core Areas ........................................ 17 Strategic Focus Areas ............................................................................................................................................. 17 Clean Mobility .................................................................................................................................................................................................................................... 17 Climate Protection ......................................................................................................................................................................................................................... 20 Circular Economy ........................................................................................................................................................................................................................... 23 Sustainable Supply Chains...................................................................................................................................................................................................... 26 Other Topics .............................................................................................................................................................. 28 Innovation and Digitalization ................................................................................................................................................................................................ 28 Green and Safe Factories ......................................................................................................................................................................................................... 31 Sustainable Profits.......................................................................................................................................................................................................................... 34 Good Working Conditions ....................................................................................................................................................................................................... 44 Product Quality ................................................................................................................................................................................................................................. 52 Safe Mobility ........................................................................................................................................................................................................................................ 53 Corporate Governance .............................................................................................................................................................................................................. 55 Corporate Citizenship ................................................................................................................................................................................................................. 68 Risk and Opportunities ............................................................................................... 69 Further Information ..................................................................................................... 73 GRI Index ................................................................................................................................................................... 73 UN Global Compact Index ...................................................................................................................................... 77 SDG Index .................................................................................................................................................................. 78 Ratings and Rankings ............................................................................................................................................. 79 Independent Auditor’s Reports ............................................................................................................................ 80 Publication Details ........................................................................................................ 81 Continental AG 2019 Integrated Sustainability Report To Our Stakeholders 5 To Our Stakeholders Dear Readers, For a better, a more sustainable world, we need visions that inspire people and guide them. We need a wide range of perspectives on how we can make these visions a reality. And we need solutions that help us get a little bit closer to our goals every day in the here and now. The year 2019 was a year of change for Continental and the entire mobility industry. The automotive industry and other sectors have initiated huge transformations in which sustainability plays an ever greater role. The future of mobility is now firmly linked to sustainability. Our goal is a healthy ecosystem
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