GRI Report 2014 [626640]
GRI Report 2014
and UN Global Compact
Communication on Progress
GRI Report 2014 Overview of Key Figures for the Continental Corporation 1
Overview of Key Figures for the Continental
Corporation
.
in € millions 2014 2013 in %
Sales 34,505.7 33,331.0 3.5
EBITDA 5,133.8 5,095.0 0.8
in % of sales 14.9 15.3
EBIT 3,344.8 3,263.7 2.5
in % of sales 9.7 9.8
Net income attributable to the shareholders of the parent 2,375.3 1,923.1 23.5
Earnings per share in € 11.88 9.62 23.5
Adjusted sales1 34,177.6 33,259.1 2.8
Adjusted operating result (adjusted EBIT)2 3,874.5 3,737.5 3.7
in % of adjusted sales 11.3 11.2
Free cash flow 2,014.9 1,818.3 10.8
Net indebtedness 2,823.5 4,289.3 -34.2
Gearing ratio in % 25.6 46.0
Equity 11,024.6 9,322.2 18.3
Equity ratio in % 36.5 34.8
Number of employees (as at December 31)3 189,168 177,762 6.4
Dividend per share in € 3.2542.50
Share price at year-end5 in € 175.55 159.40
Share price (high)5 in € 183.25 161.90
Share price (low)5 in € 136.85 80.66
1 Before changes in the scope of consolidation.
2 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and spe cial effects.
3 Excluding trainees. 4 Subject to the approval of the Annual Shareholders' Meeting on April 30, 2015.
5 Price quotations of the Continental share in the XETRA system of Deutsche Börse AG
About This Report2 GRI Report 2014
In this document, Continental AG presents its sustainability report for
the year 201 . It relates to fiscal year 201 (January 1 to December
31, 201) and is aimed at investors, analysts, customers, employees, suppliers, politicians, and public authorities, as well as all other stake –
holders that have relations with the company and want to know the values and principles that define our actions. The report aims to create transparency and therefore present – alongside our wide range of activities and achievements – all thoseareas in which we need to improve further. Over recent years, we havebased the structure and content of this report on the G lobal Reporting
Initiative (GRI) Sustainability Reporting Guidelines (version G3.). Wehave for the first time reported on all additional indicators. Foundedin the 1990s, the QVSQPTF of this initiative is to establish a frameworkaccepted around the world as a means of facilitating comparison and enhancing the credibility of the achievements reported by the respectivecompanies and organizations. "DDPSEJOH UP our self-assessment, the3FQPSU 201DPNQMJFTXJUIBplication level B. Our company preparesthis report voluntarily to create transparency. However, it is compulsory to preparethe enclosed Communication onProgress to the Global Compact ofthe United Nations on an annual basis as part of our participation.
GRI Report 2014 Contents and GRI index 3
1. Strategy and Analysis
1.1 Statement from the organization's most senior decision maker……………………………………………………………………………………….……….……….……….7
1.2 Key sustainability risks, opportunities, and impacts…………………………………………………………………………………………………………………………….………….…….7
2. Organizational Profile
2.1 Name of the company…………………………………………………………………………………………………………………………………………………………………………………………………………….….8
2.2 Important brands, products, and services………………………………………………………………………………………………………………………………………………………….….……..8
2.3 Business units and corporate structure…………………………………………………………………………………………………………………………………………………………….……….…..8 2.4 Corporate headquarters…………………………………………………………………………………………………………………………………………………………………………….……………………….……..8 2.5 Number/name of countries with major operations………………………………………………………………………………………………..…………………………………………. …..9
2.6 Ownership structure………………………………………………………………………………………………………………………………………………………………………………..……………………………. ……..9
2.7 Markets served………………………………………………………………………………………………………………………………………………………………………………………………….………………………….…..9 2.8 Scale of the reporting organization……………………………………………………………………………………………………………………………………………………………………………………9 2.9 Key changes in the period un der review…………………………… ……………………………………………………………………………………………………… ………………..…………….….9
2.10 Awards received during the reporting period…………………………………………………………………………………………………………………………..………………………..…..1 0
3. Report Parameters
3.1 Reporting period……………………………………………………………………………………………………………………………………………………………………………………………………….…………………….11
3.2 Date of the most recent report……………………………………………………………………………..……………………………………………………………………………………..………………………11
3.3 Reporting cycle……………………………………………………………………………………………………………………………………………………………………………………………………….….…………………….11 3.4 Contact person for questions regarding the repo rt………………………………………………………………………………………………………………..…………………………….11
3.5 Process for defining report content………………………………………………………………………………………………………………………………………………….……………………………….11 3.6 Scope of the report……………………………………………………………………………………………………………………………………………………………………………………….………………………..….….11
3.7 Limitations/scope of the report…………………………………………………………………………………………………………………………………………………………………………………………….11
3.8 Basis for reporting on joint ventures, subsidiaries, etc. ………………………………………………………………………………………………..…………………………………….11 3.9 Measurement techniques and basis of data calc ulations…………………………………………………………………………………………………………………………….……11
3.10 Changes compared to previous reports with regard to re-statements/new interpretations…………………………………………..……….11 3.11 Changes vis-à-vis previous reports as regards topics, scope, and measurem ent techniques………………… ………………………….….11
3.12 GRI Index table……………………………………………………………………………………………………………………………………………………………………………………………………………………….…………12 3.13 External audit of claims……………………………………………………………………………………………………………………………………………………………………………………….……………………..12
4. Governance, Commitments, and Engagement
4.1 Governance structure and responsibility for sustainability……………………………………………………………..…………………………………………………….………….13 4.2 Independence of the Chairman of the Supervisory Board………………………………………………………………………………………..…………………………….……….13 4.3 Highest governance body among companies without a supervisory board……………………………….………………………………………..…….…….13
4.4 Mechanisms for dialog between shareholders and empl oyees and the Supervisory Board/Executive Board….…..….13
4.5 Link between compensation for members of the governance bodies and the performance of the organization…13 4.6 Procedures of the executive committees to prevent conflicts of interest…………………………………………………………………….………………… …….14
4.7 Qualifications and expertise of the executive committee s in the area of sustainability…………………………………………………….……. ….14
4.8 Statement of mission, company values, and codes of conduct…………………………………………………………………………………………………………………….14
4.9 Procedures of the Executive Board and Supervisory Board to control and monitor sustainability performance……14
4.10 Processes for evaluating the Executive Board's sustainability performance…………………………………………………………………………….….……..14 4.11 Implementation of the precautionary approach………………………………………………………………………………………………………………………………………………….…..15 Contents and GRI Index
GRI Report 2014 Contents and GRI index 4
4.12 Involvement in and support of external standards, agreements, and initiatives……………………………………………………………….………..…..15
4.13 Memberships in associations and interest groups………………………………………………………….……………………………………………………………………………..………15
4.14 List of stakeholder groups engaged by the company………………………………………………………………………………………………………………………………….. …….16
4.15 Basis for identification of stakeholders………………… ………………………………………………………………………………………………………………………………………………….. …….16
4.16 Approaches to stakeholder engagement………………………………………………………………………………………………………………………………………………………………….….16
4.17 Statement on key topics and concerns of the stakeholders……………………………………………………………………………………………………………………. …….16
Economic Performance Indicators
Corporate Policy and Management Approach
EC1 Data on Financial Income…………………………………………………………………………………………………………………………………………………………………………………………………..…….17
EC2 Risks, Opportunities, and Consequences of Climate Change…………………………………………………………………………………………………………………. …….17
EC3 The Company's Social Benefits and Pension Obligations…………………………………………………………………………………………………………………………..…….17 EC4 Financial Assistance Received from Government………………………………………………………………………………………………………………………………………………….18 EC5 Ratio of Standard Entry Level Wage Compared with Local Minimum Wage………………………………………………………………………………. …….18
EC6 Spending on Locally Based Suppliers……………………………………………………………………………………………………………………………………………………………………….…….18 EC7 Hiring Local Staff……………………………………………………………………………………………………………………………………………………………………………………………………………………….…….18 EC8 Investments for the Welfare of the Local Community………………………………………………………………………………………………………………………………..……….18 EC9 Indirect Economic Impacts………………………………………………………………………………………………………………………………………………………………………………………….……….….18
Environmental Performance Indicators
Environmental Policy and Management Approach
EN1 Materials Used…………………………………………………………………………………………………………………………………………………………………………………………………………………………….…….19 EN2 Percentage of Recycling Material………………………………………………………………………………………………………………………………………………………………………………….…….19 EN3 Direct Energy Consumption…………………………………………………………………………………………………………………………………………………………………………………….….………….19 EN4 Indirect Energy Consumption…………………………………………………………………………………………………………………………………………………………………………………….………….20 EN5 Energy-Saving Measures…………………………………………………………………………………………………………………………………………………………………………………………………….……..20
EN6 Energy-Saving Measures in Products……………………………………………………………………………………………………………………………………………………………………….…..….20
EN7 Reduction of Indirect Energy Consumption…………………………………………………………………………………………………………………………………………………………..……21 EN8 Water Consumption…………………………………………………………………………………………………………………………………………………………………………………………………………………..….21 EN9 Water Sources………………………………………………………………………………………………………………………………………………………………………………………………………………………………..….21 EN10 Percentage of Reclaimed and Reused Water………………………………………………………………………………………………………………………………………………………….….21
EN11 Protected Areas…………………………………………………………………………………………………………………………………………………………………………………………………………………………….….21
EN12 Impact on Protected Areas………………………………………………………………………………………………………………………………………………………………………………………………………21 EN13 Habitats Protected or Restored…………………………………………………………………………………………………………………………………………………………………………………………….21 EN14 Measures and Plans to Promote Biodiversity………………………………………………………………………………………………………………………………………………………….….21 EN15 Number of Red List Species Affected………………………………………………………………………………………………………………………………………………………………………….. ….21
EN16 Greenhouse Gas Emissions…………………………………………………………………………………………………………………………………………………………………………………………….…….21 EN17 Other Greenhouse Gas Emissions……………………………………………………………………………………………………………………………………………………………………………….…….21 EN18 Initiatives to Reduce Gree nhouse Gases………………………………………………………………………………………………………………………………………………………… ………….22
EN19 Emissions of Ozone-Depleting Substances……………………………………………………………………………………………………………………………………………………………….22 EN20 Other Air Emissions………………………………………………………………………………………………………………………………………………………………………………………………………………..…….22
EN21 Waste Water……………………………………………………………………………………………………………………………………………………………………………………………………………………………….……….22
EN22 Waste……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….…..….22
GRI Report 2014 Contents and GRI index 5
EN23 Spills of Hazardous Substances…………………………………………………………………………………………………………………………………………………………………………………..……..22
EN24 Transported Waste Shipped Internationally…………………………………………………………………………………………………………………………………………………………..….23
EN25 Water Bodies Affected by Discharges of Water and Runoff………………………………………………………………………………………………………………………….23
EN26 Initiatives to Mitigate the Environmental Impact of Products and Services……………………………………………………………………………….……….23 EN27 Reclaimed Products and Packaging………………………………………………………………………………………………………………………………………………………………………. ……..….23
EN28 Fines……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…….…….23 EN29 Environmental Impacts of Transportation………………………………………………………………………………………………………………………………………………………..………….23
EN30 Environmental Protection Expenditures and Investments……………………………………………………………………………………………………………….…….……….23
Social Performance Indicators
Labor Practices and Decent Work
Corporate Policy and Management Approach LA1 Information on the Total Workforce…………………………………………………………………………………………………………………………………………………………………………. ……….24
LA2 Employee Fluctuation………………………………………………………………………………………………………………………………………………………………………………………………………………….24 LA3 Company Benefits for Full-Time Employees…………………………………………………………………………………………………………………………………………………….………….24 LA4 Percentage of Employees Covered by Collective Ba rgaining Agreements……………………………………………………………………………..……….….25
LA5 Notice Periods Regarding Operational Changes……………………………………………………………………………………………………………………………………….….…..…….25 LA6 Percentage of Employees Represented in Occupational Health and Safety Committees…………………………………………….………….25
LA7 Accident Statistics…………………………………………………………………………………………………………………………………………………………………………………………………………….…………….25
LA8 Company Health Management Programs……………………………………………………………………………………………………………………………………………………….…….…….25
LA9 Company Agreements on Occupational Safety……………………………………………………………………………………………………………………………………………………….26 LA10 Training Statistics……………………………………………………………………………………………………………………………………………………………………………………………………………….…. ….…….26
LA11 Lifelong Learning and Knowledge Management…………………………………………………………………………………………………………………………………….……. ……….26
LA12 Percentage of Employees Receiving Performance Reviews and Development Programs……………………………………….………. …….26
LA13 Composition of Governance Bodies Regarding Divers ity and Equal Opportunities…………………………………………………………….……….26
LA14 Ratio of Basic Salary of Men and Women……………………………………………………………………………………………………………………………………………………………. ……….27
Human Rights
Corporate Policy and Management Approach
HR1 Investment Agreements with Human Rights Clau ses………………………………………………………………………………………………………………………………………….28
HR2 Percentage of Contractors/Suppliers Subjected to Human Rights Screening………………………………………………………………………………..….28
HR3 Human Rights Training for Employees…………………………………………………………………………………………………………………………………………………………………….. …….28
HR4 Incidents of Discrimination and Action Taken…………………………………………………………………………………………………………………………………………. ……….……….28
HR5 Operations Entailing a Significant Risk for the Employees' Freedom of Association………………………………………………….……………..….28 HR6 Operations Entailing a Significant Risk of Child Labor………………………………………………………………………………………………………………………………….. …….28
HR7 Operations Entailing a Significant Risk of Forced Labor…………………………………………………………………………………………………………………………………….29
HR8 Human Rights Training for Security Personnel…………………………………………………………………………………………………………………………………………………..…….29 HR9 Violations Involving Rights of Indigenous People………………………………………………………………………………………………………………………………………….……….29
GRI Report 2014 Contents and GRI index 6
Society
Corporate Policy and Management Approach
SO1 Impact of Operations on Local Communities…………………………………………………………………………………………………………………………………………………………….30
SO2 Percentage of Business Units Analyzed for Corruption Risks……………………………………………………………………………………………………………….……….30 SO3 Percentage of Employees Trained in the Identification of Corruption Risks……………………………………………………………….……..……………….30
SO4 Action Taken in Response to Incidents of Corruption……………………………………………………………………………………………………………….………………..……….30 SO5 Participation in the Forming of Political Will……………………………………………………………………………………………………………………………………………………….……….31
SO6 Contributions to Political Parties and Politicians……………………………………………………………………………………………………………………………………………..……….31
SO7 Legal Action Against the Company for Anti-Competitive Behavior……………………………………………………………………………….……………….………….31 SO8 Fines or Sanctions Against the Company Due to Non-Co mpliance with Laws and Regulations…………….…………….…………….31
Product Responsibility
Corporate Policy and Management Approach PR1 Product Responsibility for Humans and the Environment Across the Entire Life Cycle……………………………………………….…..……….32
PR2 Non-Compliance with Requirements Regarding Product Responsibility……………………………………………………………………………………………….32
PR3 Legally Required Obligations to Provide Information Regarding Product Responsibility………………………………………………………….32 PR4 Non-Compliance with Regulations Concerning Info rmation and Labeling………………………………………………………………………………………….32
PR5 Practices to Measure Customer Satisfaction…………………………………………………………………………………………………………………………………………………..………….32 PR6 Laws and Standards Relating to Product Advertising………………………………………………………………………………………………………………………………………….33 PR7 Non-Compliance with Advertising Requirements……………………………………………………………………………………………………………………………………… .….……….33
PR8 Complaints Regarding Breaches of Customer Data Privacy……………………………………………………………………………………………………………….….……….33 PR9 Fines for Non-Compliance with Legal Requirements Regarding Product Usage…………………………………………………………………………….33
Communication on Progress to the UN Global Compact
Human Rights……………………………………………………………………………………………………………………………………………………………………………………………………………..…………………….34 Labor………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….…….34 Environment……………………………………………………………………………………………………………………………………………………………………………………………………………………………………….35
Anti-corruption………………………………………………………………………………………………………………………………………………………………………………………………………………………………….36
GRI Report 2014 Strategy and Analysis 7
1.1 Statement from the organization's most senior
decision maker
We use our technologies, systems, and services to make mobili-
ty and transportation more efficient, safer, more affordable, and therefore more sustainable. With its solutions, Continental con-
tributes to the fulfilment of people’s fundamental needs: pro-tecting life and health, improving the quality of life and mobility, protecting nature and the environment, and providing more
opportunities to shape one's own future.
Our long-term success is based on our understanding of these
needs as well as on mutual trust. Trust is placed in our employ-
ees, our business partners, and other stakeholders. The focus on sustainability and responsible conduct that is firmly embed-
ded in the corporation leaves us open to change and sees us
strengthening the future viability of our company.
As a signatory of the United Nations Global Compact, we sup-
port its ten principles in the areas of human rights, labor, envi-ronment, and anti-corruption. Sustainable management and a
sense of responsibility for the environment, employees, and
society constitute our fundamental values. It strengthens the culture of working with and for one another, it creates trust, and
it forms the basis of forward- looking and values-based corpo-
rate management at Continental.
It is an element of our corporate strategy to combine financial
and non-financial performance indicators and to take a holistic approach resulting in a contribution that impacts positively on
our employees, the environment, and society.
Dr. Elmar Degenhart
Chairman of the Executive Board 1.2 Key sustainability risks, opportunities, and impacts
Careful corporate management and good corporate govern-
ance also require that the company deal with risks in a respon-
sible manner. Continental operates a corporation-wide internal control and risk management system that helps analyze and
manage the company's risk situat ion. We use this management
system to identify and evaluate developments that could give
rise to significant disadvantages and to avoid risks that would
endanger the continued existence of the company.
Risk management is included in the annual audit. In terms of
the system for early risk recognition, the auditor found that the
Executive Board had taken the necessary measures under the German Stock Corporation Act (Section 91 AktG) to identify
developments at an early stage that pose a risk to the company
as a going concern.
More detailed information on this is provided in the "Risks and
Opportunities" chapter of our Annual Report 2014.
Continental Annual Report 2014
1. Strategy and Analysis
GRI Report 2014 Organizational Profile 8
2.1 Name of the company
Continental Aktiengesellschaft.
2.2 Important brands, products, and services
Continental develops intelligent technologies for transporting
people and their goods – as an international automotive suppli-
er, tire manufacturer, and industrial partner that provides sus-tainable, safe, comfortable, individual, and affordable solutions.
Our product portfolio includes brake systems, systems and
components for powertrains, chassis and instrumentation, info-
tainment solutions, vehicle electr onics, tires, technical elastomer
products, and systems for networked automobile communica-
tions.
Below are the important brands for each area:
› Technical products: ContiTech, Schwingmetall, Benecke-Kaliko,
Phoenix, Continental Elite
› Automotive: Continental, ATE, VDO
› Tires: Continental, General Tire, Uniroyal, Semperit, Barum,
Gislaved, Mabor, Viking, Matador, Sime Tyres, Euzkadi. 2.3 Business units and corporate structure
The corporation is split into two "groups" comprising a total of
five divisions.
Automotive Group
› The Chassis & Safety division develops, produces, and mar-
kets intelligent systems to im prove safety and vehicle dynam-
ics.
› The Powertrain division designs and engineers innovative solutions for gasoline, diesel, hybrid, and electric drive sys-
tems.
› The Interior division specializes in information management in vehicles.
Rubber Group
› The Tire division offers the complete spectrum of tires, rang-
ing from tires for cars, trucks, and buses to specialist products for construction and industrial vehicles to tires for bicycles
and motorcycles.
The ContiTech division combines our rubber and plastics activi-
ties for numerous key industries.
2.4 Corporate headquarters
Hanover, Germany.
2. Organizational Profile
GRI Report 2014 Organizational Profile 9
2.5 Number/name of countries with major operations
Continental has 317 locations in 50 countries:
› Europe (24): Austria, Belgium, Czech Republic, Denmark, Fin-land, France, Germany, Greece, Hungary, Italy, Ireland, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Ser-
bia, Slovakia, Spain, Sweden, Switzerland, Turkey, UK
› North America (3): Canada, Mexico, USA
› South America (6): Argentina, Brazil, Chile, Columbia, Ecuador,
Peru
› Africa (3): Algeria, Morocco, South Africa
› Asia (13): China, India, Indonesia, Japan, Kazakhstan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thai-land, United Arab Emirates
› Australia
2.6 Ownership structure Continental is a stock corporation under German law. As of December 31, 2014, 46.0% of shares were owned by the
Schaeffler Group, Herzogenaurach (Germany), and 54.0% were in free float (this is attributable to investors in 39 countries). Continental AG is listed on the German stock index (DAX). 2.7 Markets served Continental operates globally; we have customers in almost every country in the world. The regional distribution of sales in
2014:
› 30% Europe (excluding Germany)
› 23% Germany
› 22% NAFTA region
› 20% Asia
› 5% Other countries
This distribution is virtually unchanged on the previous year.
2.8 Scale of the reporting organization
In 2014, the corporation's 189,168 employees generated sales
amounting to €34.5 billion, representing an increase of 3.5 percent over 2013 (€33.3 billion). Worldwide, Continental is
among the top three in the automotive supply industry. In
2014, approximately 73 percent of our sales were attributable to automotive manufacturers, and 27 percent to customers
from other branches of industry and end users.
2.9 Key changes in the period under review
The number of worldwide locations increased from 300 to 317.
GRI Report 2014 Organizational Profile 10
2.10 Awards received during the reporting period
During the reporting period, Continental received awards in-
cluding the following:
› This is the second year in a row that Continental has received a sustainability award for performance in technical develop-
ment. Last year, a prize was awarded for the new retreading system for commercial vehicle tire s, while this year the winner
was the bus tire Conti Coach HA3 from the Generation 3 line, which was specially developed for use in passenger transport. The International busplaner Sustainability Prize aims to rec-
ognize commendable and sustainable product developments
from the bus and tourism industry. The prize is given out by the trade magazine busplaner, published by HUSS in Munich.
It honors businesses that "combine outstanding economic
success with social responsibility and environmental protec-tion – whose sustainable actions lead to further growth and
prosperity."
› The Waltershausen site was awarded a quality rating by the association TOTAL E-QUALITY Deutschland e.V. for its family-
friendly offerings. The association praises the support the company gives its employees for familial challenges, allowing
for an optimal balance of family and work. "Family-conscious
cooperation based on equal o pportunity is promoted and
made possible by a large number of measures implemented
on all levels," the jury explained.
› Continental and the Fraunhofer Institute for Molecular Biology and Applied Ecology (IME) at the University of Münster were
honored with the GreenTec Award 2014 for their co-develop-ment project "RUBIN – Industrial Emergence of Natural Rub-
ber from Dandelion." A 60-member jury panel consisting of
experts from industry, academia, trade associations, and the media considered this project to be an outstanding example of commitment to the environm ent and pioneering environ-
mental technology in the category "Automobility."
› For the third time, employees at the Continental plant in Calamba were honored with the PEP award for environmental-
ly conscious achievements. Conferred annually by the Philip-
pine Economic Zone Authority (PEZA), this award gives recognition to special accomplishments that advance the goal
of sustainable environmental compatibility or introduce inno-
vative systems that contribute to a continuous improvement in environmental management systems.
› Continental won a Human Resources Excellence Award from Human Resources Manager magazine. We also showed our
strength with our Germany-wide student competition ContiFlugMission, which gave teams of secondary school stu-dents from the 8th grade and above a chance to engage in
creative, experimental research into rubber as a fuel source
with the aid of a motorized rubber airplane. The competition was a playful and technically well-founded way for the stu-
dents to encounter scientific subjects. A jury of 30 human re-
sources experts from leading German and international com-panies selected the ContiFlugMission for 1st place in the cat-
egory Group Trainee Marketing.
› For their social commitment the employees from the Nort-heim site have received the Albert Schweitzer Prize 2015. For
50 years now, the employees have supported the Albert Schweitzer Familienwerk institution. In his speech, Hanover's
mayor, Klaus-Dieter Scholz, said that "soft factors such as
social commitment are increasingly gaining ground in our cooler society." ContiTech is a positive example of how the
commitment of employees brings "Hanover, Lower Saxony,
and the whole of Germany to life."
GRI Report 2014 Report Parameters 11
3.1 Reporting period
1. January 2014 to December 31, 2014.
3.2 Date of the most recent report September 2014 (for 2013).
3.3 Reporting cycle
Continental published a report in PDF form on the Internet for
the first time for fiscal year 2011. A report has been published
annually since then.
3.4 Contact person for questi ons regarding the report
Petra Hamich
Continental Aktiengesellschaft
Corporate Communications
Vahrenwalder Strasse 9 30165 Hanover
Germany
petra.hamich@conti.de
3.5 Process for defining report content
This report provides an overview of the sustainability targets, strategies, and activities of Continental AG. It adheres to version
3.0 of the internationally recognized Global Reporting Initiative
(GRI) Guidelines. Continental regards these guidelines as an important framework to follow.
3.6 Scope of the report
Financial and personnel data covers the entire corporation. Any
cases where this does not hold true – certain personnel data, for
instance – are indicated. Environmental indicators relate to our production sites incl uded in the worldwide collection system.
This covers 175 locations (see also table). The following are not included in the recording of environmental indicators:
› Locations where it is not possible to organize data collection (e.g. greenfield sites)
› Locations that are immaterial to the corporation's environ-mental indicators (e.g. test tracks, research and development centers) In order to determine the scope of this report, Continental abides by the principle of operational control according to the
regulations of IFRS and factors in all locations and companies
where controls exist. Operational control exists if Continental has full decision-making power with regard to operations. These
companies are fully consolidated in the reported data.
3.7 Limitations/scope of the report
See 3.6.
3.8 Basis for reporting on join t ventures, subsidiaries, etc.
In addition to the parent company, the consolidated financial
statements include 458 domestic and foreign companies that Continental Aktiengesellschaft incorporates according to the
regulations of IFRS 10 or that are classified as a joint arrange-
ment or as associated companies.
3.9 Measurement techniques and basis of data
calculations See 3.6.
3.10 Changes compared to prev ious reports with regard
to re-statements/new interpretations
Compared to the previous report, in which we also addressed
all additional GRI indicators for the first time, there are no changes.
3.11 Changes vis-à-vis previous reports as regards topics,
scope, and measurement techniques
Since the Report 2013, changes have been made as regards
the production sites included with respect to environmental performance indicators.
Information provided by the auditing firm KPMG AG Wirt-
schaftsprüfungsgesellschaft was relied on in determining the
current climate-relevant indicators. Production sites involved
exclusively in the internal supply of their own plants were there-fore also included. Changes in the evaluation method influ-
enced specific environmental indicators in other ways. For
example, a number of regional emission factors were adjusted and used to determine CO
2 emissions. This takes account of the
fact that natural gas and coal, for example, are natural products with different elemental compositions from region to region. Emission factors relevant to the respective region's primary
energy sources must therefore be applied.
Certifications
C overage
Total locations1ISO 9001 or ISO/TC 16949 ISO 14001
Automotive Group 128 100% 72%
Rubber Group 92 100% 73%
73 5
1 Production sites worldwide
3. Report Parameters
GRI Report 2014 Report Parameters 12
3.12 GRI Index table
See page et seq.
3.13 External audit of claims As in previous years, the auditing firm KPMG AG conducted an
independent limited assurance engagement for the indicators
"direct CO
2 emissions," "indirect CO 2 emissions," and "specific
CO 2 emissions per € million in adjusted sales" for the 2014
business year. For the first time, additional absolute and specific indicators of our environmental performance were audited in the same way. These also included "water consumption" and
"specific water consumption per € million in adjusted sales,"
"waste production," "specific waste production per € million in adjusted sales," and "recycling rate (in %) of waste production."
Information about economic circumstances as well as facts and
figures about the environment and staff chapters are based primarily on information in the Annual Report 2014.
GRI Report 2014 Governance, Commitments, and Engagement 13
4.1 Governance structure and responsibility for
sustainability
In line with the law and the Articles of Incorporation, the Execu-
tive Board, the Supervisory Board, and the Annual Shareholders' Meeting are the executive bodies of Continental AG. As a Ger-
man stock corporation, the company has a dual management
system characterized by a strict personnel division between the Executive Board (management) and the Supervisory Board
(control).
The Executive Board has sole responsibility for managing the
company free from instructions from third parties in accord-
ance with the German Stock Corporation Act, the company's Articles of Incorporation, its By -Laws, while taking into account
the resolutions of the Annual Shareholders' Meeting. Notwith-standing the principle of joint responsibility, whereby all mem-bers of the Executive Board shar e equal responsibility for man-
agement of the company, the me mbers of Executive Board are
all responsible for the areas entr usted to them. The Chairman is
responsible for the company's overall management and busi-
ness policy; he ensures management coordination and uni-
formity on the Executive Board and represents the company to the public. The Executive Board had nine members (eight men,
one woman) in fiscal year 2013.
The five divisions are represente d by one member each on the
Executive Board. The central units are represented by the Chief
Executive Officer, the Chief Financial Officer and the Chief Hu-man Relations Officer. One member of the Executive Board is
responsible for all business in China. The central units assume
the cross-divisional functions necessary for corporate man-agement, including Finance and Controlling, Law and Compli-
ance, Corporate Social Responsibility, Environment and Quality
Management in particular.
Continental AG's Supervisory Board has 20 members. In ac-
cordance with the German Co-determination Act ( Mitbestim-
mungsgesetz ) and the company's Articles of Incorporation, it
maintains equal representation of shareholders and employees. The Supervisory Board appoints the Executive Board and su-pervises and advises it in the management of the company. As
specified by law, certain corporate management matters re-quire its approval. It is directly involved in decisions of material importance to the company. The Chairman of the Supervisory
Board coordinates its work and represents its interests vis-à-vis
third parties. He is in regular contact with the Executive Board, and in particular with its chairman, to discuss the company's
strategy, development, and risk management.
A sustainability council has been in place since the end of 2010
to manage sustainability policy and corporate responsibility. It
comprises two members of the Executive Board as well as representatives from Environment, Human Relations, Law and
Compliance, Corporate Health and Safety, Investor Relations,
Corporate Auditing, and Corporate Communications. The coun-cil is chaired by the Executive Board member for Human Rela-
tions. The sustainability council convenes four times a year as
well as on other occasions as necessary. 4.2 Independence of the Chairman of the Supervisory Board
Like all other members of the Supervisory Board, the Chairman
of the Supervisory Board has no executive functions within
Continental.
Continental Annual Report 2014
4.3 Highest governance body among companies without a
supervisory board
As a German stock corporation, Continental has a supervisory
board.
4.4 Mechanisms for dialog between shareholders and
employees and the Supervisory Board/Executive Board Continental maintains systematic and ongoing dialog with
existing and potential equity and bond investors, analysts, and
other capital market participants. One point of focus is personal contact with our private shareholders as well as with schools
and universities. The Executiv e Board and Supervisory Board
answer questions from shareholders at the Annual Sharehold-
ers' Meeting.
To facilitate dialog between the Executive Board and employ-
ees, we use worldwide video conferences (three to four times a
year), the corporation's internal social network, letters from the
Executive Board on the occasion of recent events, the quarterly comments on key financial figures, as well as town hall meet-
ings at the locations.
Co-determination in the workplace is one element of employee
involvement that has a long history at Continental. While em-
ployee co-determination is governed by law in Germany, it is guided by local circumstances in other countries. Continental's
European locations appoint employee representatives to the
European Works Council (EWC), which has existed since 1992 and convenes annually to share experiences with the Executive
Board member for Human Relations and the employer repre-
sentatives for each respective country.
4.5 Link between compensation for members of the
governance bodies and the performance of the organization
Remuneration for Executive Board members consists of fixed
remuneration, variable remuneration elements, additional bene-fits, and retirement benefits.
Each Executive Board member receives fixed annual remunera-
tion paid in twelve monthly installments. After having been
increased to usual market levels in 2013, the fixed remunera-
tion will not be adjusted again until 2017 at the earliest.
The Executive Board members also receive variable remunera-
tion in the form of a performance bonus and a share-based long term incentive (LTI). The performance bonus is based on a
target bonus that the Supervisory Board determines for each 4. Governance, Commitments, and
Engagement
GRI Report 2014 Governance, Commitments, and Engagement 14
Executive Board member for 100% target achievement, and is
then calculated in line with the attainment of certain targets
relating to the year-on-year change in the Continental Value
Contribution (CVC) and the return on capital employed (ROCE). For 2014, the Supervisory Board had set the target of attaining
a specific free cash flow for the corporation. If certain minimum
values are not achieved, the performance bonus can also de-crease to zero.
In order to take into account extraordinary factors that have
influenced the degree to which targets are achieved, the Super-
visory Board has the right – at its due discretion – to retroact-
tively adjust the established a ttainment of goals on which the
calculation of the performance bonus is based by up to 20%
upward or downward. In any event, the performance bonus is
capped at 150% of the target bonus.
In addition to the performance bonus, a special bonus can be
agreed upon for special projects in individual cases or a recog-nition bonus can be granted. However, a recognition or special
bonus of this kind and the performance bonus together must
not exceed 150% of the target bonu s, and it is included in the
division into immediate payment and deferral.
The variable remuneration is supplemented by granting an LTI
that increases the share of long-term components to 60% or
more of variable remuneration ag ain on the basis of the target
values and thus further strengthens its focus on sustainable
development of the company.
For energy and environmental managers and operations man-
agers, part of the variable remuneration is based on the extent
to which the company's environmental targets have been at-
tained. For a majority of human resources managers, part of the variable remuneration is calculated on the basis of diversity
objectives or the sickness absence rate.
4.6 Procedures of the executive committees to prevent
conflicts of interest
The Supervisory Board has established by-laws that include more detailed provisions on dealing with conflicts of interest. In
addition, Continental AG's Corporate Governance Principles also
address this issue for the Supervisory Board and Executive Board. In the year under review, one member of the Super-
visory Board chose not to participate in the discussion or reso-
lution on a matter submitted to the Chairman's Committee, so as to avoid any semblance of a possible conflict of interests.
Besides this, no conflicts of interest arose among the members
of the Executive Board or the Supervisory Board. In the opinion of the Supervisory Board, it always had a sufficient number of
independent members during the reporting period. Further-
more, our Code of Conduct – which likewise addresses the issue of conflicts of interest – is binding for all employees including
the Executive Board.
The Annual Report and the financial reporting system in gen-
eral report in detail about existing controlling shareholders and
relations to associated companies and persons. 4.7 Qualifications and expertise of the executive committees in the area of sustainability
In accordance with the German Co-determination Act
(Mitbestimmungsgesetz – MitbestG ) and the company's Articles
of Incorporation, the Supervisory Board comprises 20 mem-
bers. Half the members of the Supervisory Board are elected by
the shareholders in the Shareholders' Meeting, while the other half are elected by the employees of Continental AG and its
German subsidiaries. The Supervisory Board has defined goals
for its composition which are based on the percentage of wom-en, the percentage of members with international business
experience or other international background, the number of
independent members, and the percentage of members with industry experience.
A sustainability council was founded to advise the Executive
Board on issues of corporate responsibility and sustainability
(see 4.1). This comprises two members of the Executive Board
as well as representatives from Environment, Human Relations, Law and Compliance, Corporate Health and Safety, Investor
Relations, Corporate Auditing, and Corporate Communications.
4.8 Statement of mission, company values, and codes of
conduct
The most important documents at corporation level are:
› Corporate guidelines. Since 1989, our BASICS have been conveying the corporation's visi on, values and self-image.
› Code of conduct. We published a new version of the "Conti-nental Code of Conduct" in 17 languages in September 2012.
› Principles of our corporate social responsibility. These provide an overview of our CSR principles.
› Corporate Governance Principles. Based on applicable legal provisions, the German Corporate Governance Code, and the corporate guidelines, these principles provide a detailed de-
scription of the corporation's managerial and supervisory
tasks and processes. These were last updated in December 2013.
Overview of Continental CSR documents
4.9 Procedures of the Executive Board and Supervisory
Board to control and monitor sustainability performance
See 4.1.
4.10 Processes for evaluating the Executive Board's
sustainability performance
Information for the assessment of the performance of the Ex-ecutive Board is provided in 4.5 and in the compensation report
of the Annual Report 2014 starting on page 27.
GRI Report 2014 Governance, Commitments, and Engagement 15
4.11 Implementation of the precautionary approach
There is a uniform corporate-wide risk management system for
early detection, cause analysis, assessment and avoidance or at least minimization of risks. It regulates the recording, assess-ment, documentation, and reportin g of risks and is integrated
into the company's strategy, planning, and budgeting processes. A review is held at least four times per year in the audit commit-tee of the Supervisory Board, four times per year in the scope
of Supervisory Board meetings, four times per year during
Executive Board meetings, and four times per year during meetings of the Compliance and Risk Committee.
The risk management system, which fully complies with the
Corporate Governance Principles of the Continental Corpora-
tion and with statutory requirements, is included in the annual
audit.
4.12 Involvement in and support of external standards,
agreements, and initiatives
The Continental Corporation is committed to and has signed
the following initiatives and declarations of commitment:
› Global Compact of the United Nations (since October 2012).
This demonstrates our clear commitment to the Global Com-
pact's ten principles in the areas of human rights, labor, envi-ronment, and anti-corruption.
› The Luxembourg Declaration on Workplace Health Promotion in the European Union (since May 2010). Goal: to promote
company health management.
› "Charta der Vielfalt" (German Diversity Charter) (since Decem-ber 2008). Goal: to promote equal opportunities and diversity
in the workforce.
› The European Road Safety Charter (since November 2007). Goal: to increase road safety.
› World Business Council for Sustainable Development (since 2005). The aim of this alliance is to promote the role of eco-logical efficiency, innovation, and corporate social responsibil-
ity.
In addition, companies of the corporation have signed further (country-) specific codes or declarations of commitment. For
example, Continental Reifen Deutschland GmbH has signed the "Gemeinsame Erklärung Erfolgsfaktor Familie" [joint declaration
of the success factor family].
4.13 Memberships in associations and interest groups
This section lists the majority of the corporation's memberships.
Due to the scope of this document, memberships of the indi-vidual subsidiaries and locations (for example, memberships in
German chambers of industry and commerce or employers'
associations) have not been included. › Sustainable Natural Rubber Initiative
› Association Connecting Electronics Industries (IPC)
› Cyber-Sicherheitsrat Deutschland e.V.
[Cyber Security Council Germany]
› Deutsche Gesellschaft für Personalführung (DGFP) [German Association for Personnel Management]
› Deutsche Kautschukgesellschaft [German Rubber Society]
› Deutsche Vereinigung für internationales Steuerrecht
[German Association for International Tax Law]
› Deutscher Verkehrssicherheitsrat (DVR) [German Road Safety Council]
› Deutsches Institut für Kautschuktechnologie (DIK) [German Institute of Rubber Technology]
› European Tyre & Rubber Manufacturers' Association (ETRMA)
› Forschungsvereinigung Automobiltechnik (FAT) [Research Association of Automotive Technology]
› Organisation Werbungtreiben de im Markenverband (OWM)
[German Advertisers' Association]
› Schmalenbach-Gesellschaft für Betriebswirtschaft [Schmalenbach Society for Business Administration]
› Stifterverband für die Deutsche Wissenschaft [Donors' Association for German Science]
› Verband der Automobilindustrie (VDA) [German Association of the Automotive Industry]
› Verband deutscher Sicherheitsingenieure (VDSI) [Association of German Safety Engineers]
› Verein Deutscher Ingenieure (VDI) [Association of German Engineers]
› Verein zur Förderung des Betrieblichen Brandschutzes Nie-dersachsen (vfbb) [German Association to Promote Operatio-nal Fire Protection in Lower Saxony]
› Wirtschaftsverband der deutschen Kautschukindustrie (WdK) [Trade Association of the German Rubber Industry]
› Wissensfabrik – Unternehmen für Deutschland [Knowledge Factory – Companies for Germany]
› World Business Council for Sustainable Development (WBCSD)
GRI Report 2014 Governance, Commitments, and Engagement 16
› Zentrale zur Bekämpfung unlauteren Wettbewerbs [German
Center for Combating Unfair Competition].
4.14 List of stakeholder groups engaged by the company Our stakeholders are our customers, shareholders and employ-
ees, the community, our partners, and our suppliers. We work
together with them in a wide range of areas and treat everyone with forthrightly and fairly.
4.15 Basis for identification of stakeholders
See 4.14.
4.16 Approaches to stakeholder engagement
Our shareholders and employees are at the center of our
stakeholder engagement. See 4.4 for further information. Con-
tinental also maintains ongoing dialog with customers (devel-opment partnerships) as well as scientists (research projects).
To respond as effectively as possible to the needs of junior employees in its role as an employer, we have been surveying
graduates every year since 2004 in Germany, every two years
since 2005 in Romania, and for the first time in 2011 in China
and in 2013 in Brazil.
In addition, Continental regularly conducts vehicle user surveys
covering aspects such as driving behavior, hybrid technology, and road traffic safety. In 2014, drivers from China, Germany,
France, Japan, and the USA were surveyed for the international
"Continental Mobility Study 2015." Experts from science and the automotive industry were also interviewed. The emphasis
was placed on mobility issues t hat particularly affect people
throughout the world: urbanization, safety, automated driving,
connectivity, limited energy resources, and costs.
4.17 Statement on key topics and concerns of the
stakeholders
See 4.16.
GRI Report 2014 Economic Performance Indicators 17
Corporate Policy and Management Approach
Continental is a leading global automotive supplier, tire manu-
facturer, and industrial partner to other key industries. The
market environment is highly competitive, which means there is intense pressure to innovate and keep costs down. The needs
and demands of our customers in the individual regions and
market segments are changing at an increasing pace. A high level of flexibility and customer focus are therefore key to our
success.
Over the long term, market development is being influenced by
social trends in the major regions of the world. These trends
include the rapid growth of the world's population and the resulting increase in urbanization, demographic change, and –
in particular – globalization. In this context, people are striving
to achieve a higher standard of living and the need for mobility is on the rise. Four megatrends can be derived from these
global developments. They form the foundation of our strategy
and our business activities:
› Safety – For safe mobility
› Information – For intelligent driving
› Environment – For clean power
› Affordable Cars – For global mobility
Our BASICS are fundamental for Continental's lasting success.
These corporate guidelines describe the vision, mission, and
values that guide our corporate activities and how we interact with one another and with all other stakeholders. We are con-
vinced that our values create value, as we have been supplying
our customers for more than 140 years – not merely with high-performance products, but with forward-looking solutions as
well.
EC1 Data on Financial Income
In fiscal year 2014, sales of the Continental Corporation rose by
3.5% to €34.5 billion (previous year: €33.3 billion). Earnings before interest and taxes (EBIT) increased to €3.4 billion (previ-
ous year: €3.3 billion). Investments for research and develop-
ment rose to €2.1 billion (previous year: €1.9 billion).
EC2 Risks, Opportunities, and Consequences
of Climate Change Potential risks:
› Additional regulations that restrict or limit car traffic as measures aimed at combating global warming. This could
lead to a significant decrease in car sales – and consequently
adversely affect demand for Continental's products and ser-
vices.
› Production cutbacks at the locations due to changing (region-al) climatic conditions.
› Bottlenecks in the availability of raw materials. › Extreme fluctuations in temperature and natural disaster could result in production downtimes or to interruptions in
the supply chain.
› Due to higher oil prices, for example, the behavior of consum-ers could change more rapidly than industrial development
and production can respond.
Potential opportunities:
› Shortage of natural resources. Continental relies increasingly
on the use of recycling material.
› New legal regulations to reduce CO 2 emissions. We already
generate around a third of our sales with products that are
designed to reduce CO 2 emissions.
› New legal regulations to reduce air pollution. For example, the
Powertrain division develops and produces efficient injection systems and cooling water pump s that reduce fuel consump-
tion (and therefore emissions).
› Rising energy taxes are increasing the demand for fuel-
efficient products. Our Powertrain, Tire, and ContiTech divi-
sions focus on this goal in their research and development activities.
› Introduction of eco-labels for products. With these labels, Continental could advertise its ecologically beneficial products
more effectively, thereby setting itself apart from competitors.
› Hybrid vehicle technology. If this technology gains ground on the market, the demand for the relevant components would
rise – Continental is already well-positioned in this future mar-ket.
EC3 The Company's Social Benefits and Pension Obligations
In addition to the statutory pension scheme, the Continental
Corporation offers the majority of its employees pension plans in the form of either general or individual benefit- and contribu-
tion-oriented plans. The provisions cover the obligations from defined benefit plans, in particular in Germany, the USA, Cana-da, and the UK, as well as Austria, France, Mexico, Italy, and
Ireland.
Separate pension funds exist to fully or partially finance the
company's pension obligations in conjunction with many of the
plans. These pension fund assets can only be used to settle pension obligations. The principal funds are in the USA, the UK,
Canada, and Germany in the form of contractual trust arrange-
ments (CTAs). The defined benefit obligations of all defined benefit pension plans of the Continental Corporation amounted
in 2014 to €5,265.6 million as of December 31.This is offset by
separated pension fund assets amounting to €2,035.7 million. The reported pension fund assets do not include the separate
assets of the CTA, as they did not meet the status of qualifying Economic Performance Indicators
GRI Report 2014 Economic Performance Indicators 18
plan assets in accordance with IAS 19 in connection with the
acquisition of shares in ContiTech AG.
Our international pension strategy focuses on switching from
defined benefit to defined contribution plans in order to offer
both employees and the company a sustainable and readily
understandable pension system. Continental promotes private contributions made by employees by adding corporate subsi-
dies to the money they invest. The company also encourages
employees to pay into a deferred compensation scheme. Al-most all employees in Germany enjoy the benefits of an em-
ployer-funded pension plan; at the end of 2014, almost half of
all employees were paying in to a deferred compensation
scheme.
Further information on pensions and similar obligations can be
found in the "Notes to the Consolidated Financial Statements" of
the Annual Report 2014 as well as in section LA3.
Continental Annual Report 2014
EC4 Financial Assistance Re ceived from Government
Government subsidies in 2014 amounting to a total of €7.9
million (previous year also €7.9 million) that were not intended for investments in fixed assets are shown in the "Other" and
function costs sections of the income statement. Government
investment grants amounting to €10.6 million (previous year: €34.5 million) were deducted directly from the acquisition
costs.
EC5 Ratio of Standard Entry Level Wage Compared with
Local Minimum Wage (Addition)
As yet, we have not recorded any data on this.
EC6 Spending on Locally Based Suppliers
Develop locally, purchase locally (where possible and logical
from a global sourcing perspective), manufacture and market
locally – this is our approach to business. Quality, material, and costs are our key purchase criteria. We use local suppliers if
they satisfy these three requirements.
EC7 Hiring Local Staff
As a corporation with international operations and locations in
50 countries, we make every effort to ensure that we are a good local employer. We offer attractive jobs, training opportu-
nities, and career paths. Wherever possible, we entrust the task
of managing the locations to managers that come from the
region and are familiar with the local culture.
EC8 Investments for the Welfare of the Local Community
As an international corporation, Continental has a decentralized
organization with strong local resp onsibility. This also applies for
its social commitment. As far as possible, charitable projects,
donations, and other activities are the responsibility of the de-centralized locations and their committed employees. A central
obligation to report is not provided for this purpose. Exceptions to this include national challenges such as a committed re-
sponse to (humanitarian) disasters, where the corporation as a
whole evidences its corporate social responsibility.
EC9 Indirect Economic Impacts
The Continental Corporation is a comparatively large employer at its locations and contributes to development of the region
and infrastructure by providing jobs and training opportunities,
tax payments, and contracts with local suppliers and service providers.
Income tax expense for fiscal year 2014 increased to €622.0
million (PY: €449.6 million); this corresponded to a tax rate of
20.2% following the previous year's rate of 18.3%. The pay-
ments for income taxes amounted to €775.0 million (PY: €805.4 million).
GRI Report 2014 Environmental Performance Indicators 19
Environmental Policy and Management Approach
Continental established an environmental management system
throughout the corporation more than 20 years ago. From the
very beginning, the aims have been to minimize the use of resources and to continue redu cing environmental pollution.
Initially, the environmental management system focused on the production locations an d on manufacturing.
Today, management – under consideration of environmental aspects – is focused on the identified global megatrends, which are also the foundation of the co rporation's overall strategy. In
addition, the environmental management system is now much more comprehensively defined and established, in that it in-volves all value chain levels and the complete life cycles of
Continental products. Our environmental responsibility thus
extends from research and development and purchasing of raw materials to logistics and production, and the use and recycling
of our products.
Our service processes are geared toward continually optimizing
the use of resources in relation to business volume. We manu-
facture products that make an active contribution toward pro-tecting the environment and conserving resources throughout
their entire duration of use as well as when they are recycled in
a final step.
In manufacturing, we are aiming for a 20 percent reduction in
relation to business volume of energy and water consumption,
CO
2 emissions, and waste generation by 2020 (base year
2013). At the same time, we strive to increase the recycling rate of industrial waste by 2 percent each year.
At the end of 2014, 220 production sites worldwide were in
operation, of which about 72% were certified in accordance with the international environm ental management standard ISO
14001. Relative to the 175 production sites which are envi-ronmentally relevant and used for the acquisition of environ-mental performance indicators, this figure even rises to approx-imately 90 %.
At the same time, we are taking action to encourage our suppli-
ers to observe our key environm ental principles. Before new
suppliers are commissioned, for example, a supplier assessment
is conducted using a questionnaire focusing on criteria such as energy consumption, product packaging, plant tidiness and
cleanliness, product safety data sheets, environmental certifica-
tion, and contingency management in the plant. The infor-mation is checked as part of the supplier audit. Continental
regularly requests valid environment certificates from the large
majority of suppliers with which it already has contracts.
EN1 Materials Used
The plants operated by the Rubb er Group mainly process natu-
ral and synthetic rubber, silica, carbon black, vulcanization and
aging protection chemicals, and steel, whereas those of the
Automotive Group primarily process aluminum alloy materials, steel, electronic comp onents, and plastics.
EN2 Percentage of Recycling Material The Rubber Group uses production waste generated in physi-
cal/chemical processes as reclaim and adhesive mixtures as
recyclates. In the Automotive Gr oup, the alumin um alloys and
steels contain a high volume of recycled material. We also pro-
cess recycled plastics. The share of reclaimed materials current-
ly totals approximately 3% of rubber compounds, while the
volume of recycled material in steel and aluminum is at least
70%.
EN3 Direct Energy Consumption
The total energy consumption of the 175 environmentally
relevant locations included in the recorded data, of which 159 are certified according to ISO 14001, rose by 1.5% to 27.9
million gigajoules (previous year: 27.5 million gigajoules) due to
the increased demand for our products, new product processes,
05001,0001,5002,0002,5003,000
Waste (1,000 t) Specific energy consumption
(GJ/€ million adjusted sales)2,5962,765 2,789
797 834 816674
2012 2013 2014 Target 2020Energy consumptionEnvironmental Performance Indicators
GRI Report 2014 Environmental Performance Indicators 20
and the construction of new production locations (greenfield
sites). Electricity accounted for 14.3 million gigajoules and fossil fuels for 13.6 million gigajoules.
Energy intensity decreased compared with 2013, declining
from 834 to 816 gigajoules per € million in adjusted sales. Our
aim: to reduce specific energy consumption to 674 gigajoules
per € million in adjusted sales by 2020.
The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN4 Indirect Energy Consumption
The energy consumption causing CO
2 emissions according to
Scope 2 of the Greenhouse Gas Protocoll (GHG) can be essen-
tially described with the consumption of electrical energy and
supplied steam. In 2014, indirect consumption amounted to €14.3 million gigajoules (PY: 13.9 million gigajoules)
The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN5 Energy-Saving Measures (Additional Indicator)
Meanwhile, the moderate increase in energy consumption over
the past few years (due to increased demand and therefore
production) led to a slight decrease in specific energy con-sumption – from 834 to 816 gigajoules per € million in adjust-
ed sales. This reduction by approx. 1.6% despite an increase in
production by 2.1% can be attributed among other things to energy-saving measures and increased energy efficiency. By
2020, we wish to reduce this value to 674 gigajoules per €
million in adjusted sales. One of the corporation's strategic environmental objectives is to reduce energy consumption by
20% between 2013 and 2020. The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN6 Energy-Saving Measures in Products (Additional
Indicator) In light of increasingly scarce resources, we believe it is our
duty to develop sustainable solutions for tire production in
order to reduce the demand for natural resources and therefore also lower the energy requirement of products. In the year
under review, operations at the new ContiLifeCycle plant in
Hanover-Stöcken for retreaded truck and bus tires (including a recycling plant for rubber from used tires) have picked up
speed. More than 100 new jobs ha ve since been created there.
Unique in this combination throughout the sector worldwide,
the plant concludes the tire production cycle and will leverage
the synergies from retreading and rubber recycling. Thanks to
the recycling process developed by Continental, the volume of recycled materials in new tires can be almost doubled (from the
current 3% to 6% or more). In the European Union, 39% of old
tires (either whole or shredded) are currently used in the ce-ment industry. There they are used as an energy source
(approx. 75%) and a source of secondary raw materials (approx.
25%). Another 37% of the annual volume of old tires is pro-cessed further to create technically high-quality secondary raw
materials. They are used to produce materials for the construc-
tion of sports facilities and roads, for example.
The flagship project HECO
2 (Highly Efficient CO 2), initiated in
the automotive sector, consistently exploits the light-weight
design of our products, resulting in a significant conservation of
raw materials as well as fuels in motor vehicle operation. An
additional aspect of this development initiative is the conserva-tion of energy through more energy-efficient components.
Together with energy recovery and efficiency management in
vehicle operation, this leads to considerable savings. 02004006008001,0001,2001,4001,6001,800
1,0000 m3 Specific water consumption
(m3/€ million adjusted sales)1,605 1,617 1,642
493 488 480394
2012 2013 2014 Target 2020Water consumption
GRI Report 2014 Environmental Performance Indicators 21
EN7 Reduction of Indirect Energy Consumption
(Additional Indicator)
See EN5 and EN6.
EN8 Water Consumption
In 2014, the demand for water rose slightly by 1.6% to 16.4
million cubic meters (PY: 16.2 million cubic meters). Here too, the reason for the rise was increased production. In contrast,
specific consumption (per million € in adjusted sales) declined
slightly compared with 2013, increasing from 487 to 488 cubic
meters per € million in adjusted sales. By 2020, we intend to
lower our specific water consumption to 394 cubic meters per € million in adjusted sales.
The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN9 Water Sources (Additional Indicator)
A total of 24% of water consumed in 2014 originated from surface water, 37% from the public drinking water network, and
39% from our own wells.
EN10 Percentage of Reclaimed and Reused Water
(Additional Indicator)
As yet, we have not recorded any data on this.
EN11 Protected Areas
Adrspach, Czech Republic: The site is located in the "Broumovsko" nature reserve.
Babenhausen (Germany): The "Magersandrasen" nature reserve
(FFH, flora-fauna-habitat) is located within the site premises in
front of the administrative building. This area is inspected annu-
ally in the presence of the natu re conservation authority and is
further developed by a coordinated care plan.
Hanover-Stöcken, Germany: This location is situated on the
edge of an FFH area.
Nuremberg, Germany: A water protection area is situated 500
meters from the location and an FFH / bird sanctuary is situat-
ed one kilometer away.
EN12 Impact on Protected Areas
Continental is not aware of any negative impact.
EN13 Habitats Protec ted or Restored
(Additional Indicator)
The majority of our plants are located in industrial and com-mercial areas. If protected or restored habitats are located in
close proximity, we minimize any potential negative impact on
these areas. EN14 Measures and Plans to Promote Biodiversity (Additional Indicator)
Many of our components – piezo injection valves for conven-
tional gasoline and diesel engine s, for example – can be easily
powered using biofuels. There is a wide range of components
that are suitable for conventional fuels as well as for bioethanol.
While this helps to conserve resources and, in turn, contributes to climate protection, it can negatively impact biodiversity if the
raw materials come from monocultures. We are aware of this
problem. Continental is driving forward the use of renewable raw materials such as natural rubber and vegetable oils. To-
gether with the Fraunhofer Institute for Molecular Biology and
Applied Ecology (IME) at the University of Münster, we are work-ing on developing new approaches in the "RUBIN – Industrial
Emergence of Natural Rubber from Dandelion" project. This is
because we are expecting a cons iderable rise in demand for
natural rubber over the long te rm. The use of rubber from dan-
delion roots has many benefits: Unlike the traditional rubber
plant, the Russian dandelion plant – which is particularly rich in rubber – does not depend on a tropical climate and can be
grown in temperate latitudes. As a result, transport routes can
be shortened and valuable areas of rainforest conserved.
EN15 Number of Red List Species Affected (Addition)
Continental is not aware of any endangered species with a habitat in our production areas.
EN16 Greenhouse Gas Emissions
Total CO
2 emissions of the included locations amounted to 2.64
million metric tons in 2014 (PY: 2.52 million metric tons). That corresponds to an increase of 4.8%, due in part to the 2.1% rise in production, new product launches with associated launch-
related effects, and virtual increases through the adjustment of
local/regional emission coefficients. Direct CO
2 emissions
(Scope 1 according to the Greenhouse Gas Protocol) in 2014
amounted to 662,000 metric tons (PY: 659,000 metric tons);
indirect emissions from external energy sources (Scope 2) rose
from 1.86 million metric tons to 1.97 million metric tons. This
yields a specific figure of 77.1 metric tons of CO 2 emissions per
million € in adjusted sales (PY: 75.9 metric tons). By 2020, we
want to reduce this figure to 61.3 metric tons per million € in
adjusted sales.
The data we have recorded relates to all environmentally rele-
vant manufacturing facilities over which Continental AG has
operational control (a total of 175 corporate locations).
The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN17 Other Greenhouse Gas Emissions
Only marginal amounts of methane, nitrous oxide, and fluoro-carbons are released in produc tion and these emissions are
falling continuously.
GRI Report 2014 Environmental Performance Indicators 22
EN18 Initiatives to Reduce Greenhouse Gases (Additional
Indicator)
Climate protection is at the heart of our environmental man-
agement and corporate strategy. We develop products and
systems that reduce the emissions of polluting gases. We do this, on the one hand, by reducing the weight of our products
(reduced fuel consumption) and, on the other, by making con-
tinuous improvements in product properties in terms of rolling
and friction resistance of tires, engines, and transmissions. We
help to protect the climate by increasing our use of renewable
raw materials as well.
We have been responding to the CDP's extensive catalog of
questions on our commitment to climate protection every year since 2009. The process is linked to a public ranking of our
company. In the most recent assessment published in October
2014, Continental yet again achieved a record high with 80 points in the automotive supply industry group. Further infor-
mation can be found in our response to the CDP (see link).
CDP
EN19 Emissions of Ozone-Depleting Substances
A few of our locations outside Europe produce minimal, unfore-
seen emissions (leaks) of ozone-depleting substances from air conditioning systems. Continental, of course, complies with
legal requirements in these countries to discharge such sub-
stances.
EN20 Other Air Emissions
The locations with on-site boiler houses emit low levels of nitro-gen oxide, dust, and sulfur dioxide. In rubber processing, we use
volatile organic compounds (VOCs) for surface treatment. We are working on a project concerning the development of alter-
natives to VOCs.
EN21 Waste Water
As yet, we do not record the quantity of discharged waste wa-ter, but it is less than the total water consumption (due to evap-
oration in the use of cooling water). Furthermore, waste water
treatment plants ensure that surface water pollution is mini-mized. Waste water from sanitary facilities is discharged directly
into public sewage systems.
EN22 Waste
In 2014, the corporation produced 291,000 metric tons of
waste (previous year: 280,000 metric tons). The increase of approx. 5% is the result of an increase in production volume
(2.1%) and the consolidation of waste collection. The specific
waste volume per million € in adjusted sales thus remained
nearly constant at 8.5 metric tons (previous year: 8.4 metric
tons) despite the increase in sales of 2.1%. In 2014, we recycled
(or sent for recycling) around 85% of waste. We are striving for a specific waste volume of 6.8 metric tons per million € in ad-
justed sales and a recycling rate of over 90% by 2020.
The cited key figures were reviewed by the auditing firm KPMG
and verified with an ISAE 3000 certificate.
EN23 Spills of Hazardous Substances
In the event of failures, there may be minor emissions of
fuels/oils. 05001,0001,5002,0002,500
Scope 1 (1000 t) Scope 2 (1000 t) Specific CO2 emissions
(100 kg/€ million adjusted sales)592659 6621,861 1,8571,974
613753 759 771
2012 2013 2014 Target 2020CO2 emissions
GRI Report 2014 Environmental Performance Indicators 23
EN24 Transported Waste Shipped Internationally
(Addition) Continental does not export any waste. We have contracts with
certified, professional waste recyclers who collect our waste and
properly recycle or dispose of it. Since no uniform international definition of the term "hazardous waste" exists, it is not yet pos-
sible for us to report on this. However, the possibility of Conti-
nental importing or exporting hazardous waste can be ruled out.
EN25 Water Bodies Affected by Discharges of Water and
Runoff
Continental is not aware of any water bodies affected by dis-
charges of water and runoff.
EN26 Initiatives to Mitigate the Environmental Impact of
Products and Services
In 2014, about one-third of our sales – around €11 billion –
were for products that are exceptionally energy-efficient or
demonstrably lead to reduced emissions of pollutants or CO
2. In
the past few years, for example, we have managed to substan-
tially reduce the weight of our brake components while at the
same time enhancing braking performance. In addition, we are continuously improving the average rolling resistance of our
tires – without compromising on safety. Our piezo injection
valves for conventional gasoline and diesel engines reduce CO
2
emissions by up to 20%. What is more, our telematics systems and optimized hose lines reduce climate-relevant emissions.
Our products for the automotive industry shall continue to help reduce CO
2 emissions from cars and trucks. Hybrid drives for
cars can lower CO 2 emissions by 10 to 25%, depending on the
hybrid type and application conditions.
Our products also contribute to climate protection in non-
automotive applications. For example, our conveyor belts with optimized rolling resistance (energy-optimized conveyor belts)
significantly reduce the energy required in open-cast coal min-
ing. In addition, the new Cont iThermo-Protect insulation pro-
tects industrial equipment from heat loss even in inaccessible places and thereby reduces the amount of fossil raw materials
required to produce heat energy.
EN27 Reclaimed Products and Packaging
Continental has no take-back obligation for original equipment components, as the law assigns responsibility for this to the
vehicle manufacturers, e.g. the EU end-of-life vehicles directive.
In many European countries, we do reclaim old tires in accord-
ance with national laws. However, we are not able to specify
quantities due to differing lega l regulations. The average recy-
cling rate for old tires (from all manufacturers) in Europe is
currently approx. 96%. Continental played a role in achieving
this notable success as a corporate member of the European
Tire and Rubber Manufacturers' Association (ERTMA).
EN28 Fines
Financial penalties, legal disputes, and claims for damages are disclosed in the Annual Report 2014 (see "Other Disclosures" of
the Annual Report, page 220).
EN29 Environmental Impacts of Transportation
(Additional Indicator)
As yet, we have not recorded any data on this.
EN30 Environmental Protection Expenditures and
Investments (Additional Indicator) As yet, we have not recorded any data on this. 050100150200250300350400
Waste (1,000 t) Specific waste
(100 kg/€ million adjusted sales)Specific waste (%)265280291
82 84 856885 84 85 90
2012 2013 2014 Target2020Waste generation and recovery
GRI Report 2014 Social Performance Indicators 24
Corporate Policy and Management Approach
In the past 10 years, the numb er of Continental employees has
grown by over 100,000 employees. New business areas and new international markets have been tapped into and integrat-ed in the corporation. On the global labor markets, the competi-
tion for specialist and managerial staff is growing due to a re-
duction in the working population. We are continually develop-ing our HR strategy to enable our company to take on the
growing internal and external challenges involved in HR work.
Our HR strategy is focused on the two fields of action “employ-ees and corporate culture”.
In dialog with our employees, we used a number of measures
to strengthen our corporate culture, characterized by our four
values: Trust, Passion To Win, Freedom To Act, and For One
Another, and firmly embed it in our corporation. Only in an
inspiring environment can we su ccessfully create optimal de-
velopment opportunities for our employees.
We see our employees not as resources but as individuals
whose skills and abilities are recognized as our organization's
most valuable asset. For this reason we now see our HR work as "human relations," not "human resources." This emphasizes a
holistic approach to HR work with the focus firmly on people.
The new name is intended to make it clear that our work is about relationships with one another and the values that we put
into practice and exemplify. The change affects not only the HR department but the entire comp any. It is about the way in
which executives and managers interact with their employees.
It is about our work atmosphere and the way we work together
in the company.
LA1 Information on the Total Workforce
At the end of 2014, Continental employed 189,168 women and men in 50 countries, almost two-thirds of them in Europe
(and half of them in Germany). The number of employees rose
by 11,406 over the previous year. In 2014, Continental em-ployed 11,465 temporary workers. The percentage of women
in the global workforce* was 27.3%, in executive positions
10.0%.
At the end of 2014, 2,026 young people were undergoing
training with us. The percentage of trainees in Germany re-mained stable at more than 4.1%. In 2012, we concluded an
agreement specifying that, in the future, young trainees will
receive employment contracts of indefinite duration following completion of their training with us.
Demographic trends in the Western industrial nations over the
next few years will represent a major challenge for Continental
too: the number of older employee s will increase, especially in
our factories. Our "Demography Program," launched in 2005, is
a comprehensive concept aimed at dealing with this issue.
In 2014, our workforce* was subdivided into the following age
groups:
› Up to 25 years: 12% (PY: 13%)
› 26-35 years: 34% (33%)
› 36-45 years: 27% (27%)
› 46-55 years: 20% (20%)
› 56-65 years: 7 % (7%).
LA2 Employee Fluctuation*
As at December 31, 2014, we had a corporation-wide fluctua-
tion of 4.1% (previous year: 3.7%). The average job tenure
worldwide was 9.3 years (Germany: 14.8 years). Around 95% of
employees form the core workforce.
Employee fluctuation differs by country and region:
› Asia: 8.1% (PY: 8.3%)
› Germany: 1.0% (1.1%)
› Europe (excluding Germany): 3.5% (2.8%)
› NAFTA: 6.5% (5.7%)
› South America: 3.2% (2.4%)
› Other: 1.7% (1.6%)
LA3 Company Benefits for Full-Time Employees
(Additional Indicator)
In 2011, the Continental Executive Board decided to introduce
an annual value sharing bonus for all employees worldwide. A corporate-wide agreement to this effect was concluded with the
corporate Works Council in Germany. The program allows em-
ployees of the corporation to participate directly in the success of the company by receiving a bonus. The amount they receive
depends on the absolute value proposition of the Continental
*The recording scope does not yet cover all employees worldwide. At the end of 2014, 172,000 employees were included (previous year: 155,500). This
represents a coverage of 96%. The worldwide standardization of the HR systems is currently being pushed forward in a project. Social Performance Indicators
Labor Practices and Decent Work
GRI Report 2014 Social Performance Indicators 25
Corporation in the business year in question. The total volume
of the value sharing bonus for 2014 was around €130 million
(previous year: €100 million).
Our international pension strategy is focusing on switching
from defined benefit to defined contribution plans in order to
offer both employees and the company a sustainable and readi-ly understandable pension system. Continental promotes pri-
vate contributions made by employees by adding corporate
subsidies to the money they invest. Continental also encour-ages employees to pay into a deferred compensation scheme,
whereby employees relinquish part of their earned income. Continental then invests this in the company pension scheme.
In addition, Continental offers a long-term account model to
management personnel in all af filiated German companies as
well as to all employees, who fall within the area of validity of
the collective agreement of the chemical industry. This model
offers both the option of a flexible transition to retirement pen-sion and possible leave for qualification measures, parental
leave, and care periods.
See also EC3.
LA4 Percentage of Employees Covered by Collective
Bargaining Agreements
Continental observes the HR policy of the "Tripartite Declaration
of Principles concerning Multinational Enterprises and Social Policy" of the International Labour Organization (ILO). This dec-
laration includes the employees' right to freedom of association.
At Continental, 70% of employees work in countries that are members of the Organisation fo r Economic Co-operation and
Development (OECD) and are expected to comply with the aforementioned principle. In Germany, collective bargaining agreements have been reached for almost 90% of the core
workforce.
LA5 Notice Periods Regard ing Operational Changes
The Executive Board reports to the Supervisory Board on mat-
ters regarding (upcoming) operational changes in the corpora-tion, informing the employee representatives at the same time. Continental ensures that employees are informed about major operational changes early on. Th ere were no such changes in
2014. At the locations and in the business units of Continental AG, employee representatives are elected on the basis of the respective legislation. These re presentatives likewise inform
Continental about changes at an early stage. We comply with all legal regulations relating to notice periods as well as those governed separately by collective bargaining agreements.
LA6 Percentage of Employees Represented in
Occupational Health and Safety Committees (Additional
Indicator)
All Continental AG employees in Germany are represented in the legally required occupational health and safety committees
through Works Councils and Safety Officers.
LA7 Accident Statistics
Absence and accident rates reflect the success of preventative
occupational health and safety measures in the corporation. With regard to illness-related absences, the encouraging trend
in the past few years stabilized in 2014: On average, each em-ployee was absent for 3.6% of contractually agreed working time. In 2009, it was 4.0% (see table). The number of industrial
accidents per million hours worked has fallen considerably in
the past few years: from 5.0 (2009) to 3.0 (2014). As a result, the number of hours lost per million hours worked reduced
from 845 to 486 hours during the same period. Fortunately,
there were no fatal occupational accidents in 2014.
Due to the highly varying products and production methods,
the accidents are recorded and evaluated on a local level only and are differentiated according to the type of injury. The data
is not recorded and consolidated for the corporation.
LA8 Company Health Management Programs
Continental is among the signatories of the "Luxembourg Dec-
laration on Workplace Health Promotion in the European Un-
ion." It was adopted by all members of the European Network
for Workplace Health Promotion (ENWHP) in 1997 to promote
health and occupational safety in the companies of member-states and to encourage member states to attach greater im-
Accident statistics
2009 2010 2011 2012 2013 2014
Absences due to sickness1 4.0 3.8 3.5 3.5 3.5 3.6
Accident rate2 5.0 4.6 4.2 3.6 3.3 3.0
Time lost3 845 729 638 574 472 486
1 Absences due to sickness = paid and unpaid absences as a percentage of contractual working hours.
2 Accident rate = number of industrial accidents worldwide resulting in the loss of one or more working-day equivalents per mil lion hours worked.
3 Time lost = number of hours lost (worldwide) due to accidents per million hours worked.
GRI Report 2014 Social Performance Indicators 26
portance to workplace health promotion (WHP). In keeping with
the "Luxembourg Declaration," we intensively promote the in-
troduction of a holistic, systematic, and integrated company health management system at all of our locations worldwide.
At many of our locations, employees can not only use the com-
pany medical services, but also get involved in a variety of measures relating to workplace health promotion covering
areas such as physical activity, diet, and relaxation. They can
also take part in health screening. Our "Healthy Leadership" programs, which were developed to give managers health skills
and provide "stress control" techniques to improve employees'
abilities to deal with stress, were expanded. Thanks to the "Em-ployee Assistance Program" implemented by an external ser-
vice provider, we help employees with work-related or personal
problems while ensuring their anonymity.
Work-related illnesses are recorded locally at the respective
locations. With respect to work -related illnes ses, emphasis
should be placed on prevention. Regular risk assessments are
carried out for all workplaces worldwide to determine and eval-
uate risks. If determined risks are considered to be too high, suitable technical, organizational, or HR measures are taken to
reduce them. Over the last few years, more and more emphasis
has also been placed on ergonomic stresses. In the meantime, workplaces in production areas in Germany are evaluated er-
gonomically. The program is presently being rolled out world-
wide.
LA9 Company Agreements on Occupational Safety
(Additional Indicator) The "Safety and Health" (SH) department is responsible for oc-
cupational safety at the corporate level and reports directly to
the Executive Board member for HR. Our goal for occupational safety: zero accidents and no operation-related illnesses ("we go
for zero incidents"). The Continental ESH Management System
meets the international standard for occupational safety man-
agement OHSAS 18001. A total of 28 locations worldwide are
certified according to OHSAS 18001. Company agreements on
occupational health and safety are concluded at the company and/or site level in Germany.
LA10 Training Statistics
As yet, we have not created any statistics on this. See also
LA12.
LA11 Lifelong Learning and Knowledge Management
(Additional Indicator)
Lifelong learning is particularly challenging in times of demo-graphic change. In the words of our corporate guidelines: "We
promote lifelong learning along with personal and professional
development. We make knowledge available to everyone in our company as quickly as possible and offer mutual support for
enabling swift adjustment to changes within our environment."
Continental supports this with a comprehensive range of train-ing programs and the Employee Suggestion System. "Continen-
tal Ideas Management" encourages and calls for the commit-ment and motivation of our employees and gives them a proac-tive role in improving their own working environment. Their commitment is rewarded with bonuses and special campaigns.
In 2014, nearly 450,000 ideas were submitted, of which
around 390,000 were put into effect. These led to savings of
more than €126 million. Idea management is one example of
how the management and values culture is put into practice at Continental and shows that values really do create value. Hu-
man Relations therefore sees idea management as being at the
heart of the learning organization. To further increase the suc-cess of idea management, we are working on a new efficient
system that is expected to be introduced in 2016.
See also LA12.
LA12 Percentage of Employees Receiving Performance
Reviews and Development Programs (Additional
Indicator)
As a matter of principle, all employees participate in the talent management process. In this framework, annual employee
dialogs are held and development plans are devised. In order to
support the development process, Continental offers systematic programs worldwide for the different target groups. These pro-
grams include:
› Corporate Entry Program: a tailored package for new employ-ees with a university degree. It offers comprehensive insight
into the corporation and helps them to hone their qualifica-tions profile.
› Assessment and Development Center: for the identification and promotion of management personnel
› Management development programs: preparation of manag-ers for the next higher level with respect to social skills, man-
agement skills, and management culture.
› International Management Program: experienced managers handle challenging corporate projects at a high academic level.
› BIG SIX Radar: 360° feedback process to help managers iden-tify strengths and development potential – open to all 15,000
managers in the corporation.
In addition, a large number of training, qualification, and devel-opment programs, especially in technical areas, are offered at the locations and in the different countries. We perform regular
checks to determine the effectiveness and sustainability of
these measures.
LA13 Composition of Governance Bodies Regarding
Diversity and Equal Opportunities Continental is committed to treating all employees equally,
regardless of age, gender, nationality, religion, skin color, or
sexual orientation. For us, it is the abilities and potential within people themselves that counts. This is expressed in our corpo-
rate guidelines as well as th rough our signing of the German
"Diversity Charter."
GRI Report 2014 Social Performance Indicators 27
In accordance with the recommendations of the German Cor-
porate Governance Code, the Supervisory Board of Continental
AG has specified a number of targets for its composition.
Among other things, the aim is to increase the percentage of women in the Supervisory Board to 20% over the medium term
(this had already been achieved by the scheduled election in
2014). The Supervisory Board is keen to ensure that women are afforded appropriate consideration when it comes to ap-
pointments to the Executive Board. In 2014, one woman was
on the Executive Board (responsible for the area of HR and also director of labor relations).
Around 3,000 employees worldwide occupy a management
position (executive or senior executive position). The proportion
of women occupying these positions was 10% in 2014 (previ-
ous year: 9%). Continental wants to raise this figure to 16% by 2020.
Around 70% of our employees work outside Germany and 40%
outside Europe. The many different nationalities of the employ-
ees working at the locations also contributes to this highly
international nature. An important aim at all locations is to
achieve a balanced ratio of local to international managers. This is in line with market requirements as well as the current global understanding. The proportion of local and international man-
agers fluctuates according to the region; in 2014, the percent-
age of foreign managers in the corporation was 40%.
From September 2014 to March 2015, we held a Diversity
Leadership training course to sharpen our managers' aware-ness of the issue of diversity management in a targeted way.
The focus of the training course was not primarily placed on
the definition and detailed description of diversity, but rather on the issue of the "unconscious bias" and the effects of uncon-
scious distortions of perception on decision-making and man-
agement behavior. The training course was targeted at the 3,000 top management personne l at Continental worldwide
(executives and senior executives); the international training course was conducted exclusively by internal trainers.
LA14 Ratio of Basic Salary of Men and Women
Continental's remuneration models relate to roles, knowledge, and experience – irrespective of gender. In Germany, this is
binding in collective agreements with the IG Metall and IG BCE
trade unions. No such differentiation is made for non-pay-scale employees either.
GRI Report 2014 Social Performance Indicators 28
Corporate Policy and Management Approach
The "Universal Declaration of Human Rights" of the United Na-
tions requires each individual, every organ of society and, by extension, economic agents and businesses, to contribute to-
wards the observation of these rights. This is a primary concern
at Continental as well. We are convinced that a commitment to observing human rights and the strengthening of political free-
doms encourage a society's econ omic development, particular-
ly by improving investment opportunities, freedom of move-
ment and educational prospects.
As an international corporation, we at Continental are commit-
ted to actively promoting the observance of human rights
where we can. The guiding principle here is that a company
and its regional branches can only contribute towards compli-ance with human rights as a complement to politics, not as a
replacement of it. The corporation ensures that it does not
contribute towards any human rights infringements within its sphere of influence, particularly with regard to forced, compul-
sory, or child labor. This is firmly embedded in our principles of
corporate social responsibility and our Supplier Code of Con-duct and is reinforced by our participation in the Global Com-
pact of the United Nations.
HR1 Investment Agreements wi th Human Rights Clauses
Since 2011, we have obligated all of our suppliers and service
providers to uphold our "Supplier Code of Conduct." This code of conduct comprises ten points, one of which is human rights.
Our suppliers promise to observe these principles. When invest-
ing in the construction of new locations, we ensure that we uphold the principles of the Gl obal Compact. The same applies
to the acquisition of companies.
HR2 Percentage of Contractors/Suppliers Subjected to
Human Rights Screening
Continental maintains a network of approx. 4,300 suppliers for production materials, with approx. 2,800 in the Automotive
Group and approx. 1,500 in the Rubber Group. In 2014, we
procured 65% of all materials and about 70% of the total pur-chasing volume from companies headquartered in states be-
longing to the Organisation fo r Economic Co-operation and
Development (OECD), where human rights violations are not
expected to occur.
In addition to the commitment of suppliers to comply with the
Code of Conduct, raw materials suppliers are subject to review
prior to initiating a supply relationship. The goal is to review
suppliers on the basis of different criteria to verify their sustain-able "supply suitability." Apart from technological and financial
criteria, the suppliers are also evaluated with respect to general
corporate issues. Plant visits are also carried out in the scope of the review to obtain an impression of the prevailing work condi-
tions. This is integrated into the review if apparent deficits are ascertained. A supply relationship can be suspended in extreme cases if defined countermeasures should not yield the desired
success.
Continental Supplier Code of Conduct
HR3 Human Rights Training for Employees (Additional
Indicator) September 2014 saw the completion of our e-learning training
course on our Code of Conduct, which also includes human
rights issues. Of the approximat ely 59,000 employees invited, a
total of 98% took part worldwide.
HR4 Incidents of Discrimination and Action Taken
The following is included in our Code of Conduct, which applies
to all employees: "We are proud of the diversity the worldwide
business of Continental offers. We will treat our fellow employ-ees, potential employees, suppliers, customers, and any other
persons with whom we conduct business with fairness and
respect, refraining from any discrimination, harassment and other improper behavior with respect to gender, age, race, skin
color, ethnicity or national origin, citizenship, religion or religious
beliefs, physical or mental disability, veteran status, sexual orien-tation, or any other characteristics protected by applicable law."
All employees or stakeholders who become aware of illegal or
dubious activities can report this to our compliance and anti-
corruption hotline. In the year under review, 45 of the 196
incidents reported via the hotline related to HR issues (including discrimination and harassment).
HR5 Operations Entailing a Significant Risk for the
Employees' Freedom of Association
As a company conducting operations and procuring goods at
an international level, we cannot exclude this risk. We can as-sume, however, that 70% of our purchasing volume for produc-
tion materials is with suppliers based in OECD countries who therefore respect and enable their employees' freedom of asso-ciation.
Our Code of Conduct points ou t that Continental adheres to
existing laws and requirements – which includes ensuring free-
dom of association and assembly. Our Law and Compliance
departments deal with reports of potential violations and also
conduct step-by-step investigations. Our Supplier Code of Con-
duct obligates all suppliers and service providers to respect
human rights, which include freedom of association. See also HR2.
HR6 Operations Entailing a Significant Risk of Child Labor
See HR5. Social Performance Indicators
Human Rights
GRI Report 2014 Social Performance Indicators 29
HR7 Operations Entailing a Significant Risk of Forced
Labor
See HR5.
HR8 Human Rights Training for Security Personnel
(Additional Indicator)
Just like all other employees, ou r security personnel is likewise
obligated to respect human rights and behave in accordance
with local laws and requirements. However, as yet, there are no
special training courses on this.
HR9 Violations Involving Rights of Indigenous People
(Additional Indicator) Continental is not aware of any incidents connected with our
business activities in which th e rights of indigenous people
were violated.
GRI Report 2014 Social Performance Indicators 30
Corporate Policy and Management Approach
One of our basic values is Trust. Trust assumes integrity, hones-
ty, and incorruptibility. Management and employee compliance with all the legal requirements that apply to Continental and its
subsidiaries as well as all internal regulations has therefore long
been our goal and shapes our corporate culture.
In addition to our corporate guidelines, the BASICS, and the
Corporate Governance Principles, this is also reflected in our Corporate Social Responsibility Principles and Code of Conduct.
In accordance with the respective legal conditions of each
country, all employees must agree to the Code of Conduct. Our anti-corruption guideline is intended to increase awareness of
compliance with the relevant regulations at all levels and pro-
vide guidance in dealing with gifts and benefits.
Continental faces up to its social responsibilities and respects
the laws and cultures of every co untry. Thanks to our profitable
performance, we provide secure jobs in many regions of the
world. In addition, we want to create value for those who live
and work near our facilities as well. Our voluntary engagement focuses on three areas where we position ourselves on the
basis of our business model, our challenges, or our self-image
and where we aim to promote sustainable development: social well-being and traffic safety, education and science, and sport.
SO1 Impact of Operations on Local Communities
Continental is a comparatively large employer at many loca-
tions and makes a significant contribution to the development
of the region by providing jobs and training opportunities, tax payments, and contracts with local suppliers and service pro-
viders. See also EC8 and EC9.
SO2 Percentage of Business Units Analyzed for Corruption
Risks
The Executive Board is fully committed to a "zero tolerance" policy with regard to corruption and antitrust. A comprehensive
analysis forms the basis of our Compliance Management Sys-
tem (CMS): The company and its business activities are exam-ined in terms of potential compliance risks that can arise from
its structures and processes, a sp ecific market situation, or in
specific regions. During this analysis, we take into account,
among other things, the results of a regular corporation-wide
risk inventory as well as external sources (such as the Corrup-tion Perception Index from Transparency International).
Continental does not carry out any specific corruption-related
audits. Corruption-related issues are also reviewed in each gen-eral audit in the scope of the general audit catalog. Based on
our risk analysis, we consider the following to be corruption
risks: facilitation payments, consultants or intermediaries and slush funds, contributions in busi ness practice that do not agree
with internal requirements, especially with high-value hospitality and kick-back scenarios in purchasing and sales. Employees and third parties can report potentially suspicious
cases via the compliance and anti-corruption hotline, which are
dealt with by the Corporate Auditing and Compliance depart-ments. In the reporting period, 196 situations were reported to
the hotline, with processing completed for 157 of these.
Communications to the compliance and anti-corruption hotline 196
Of these related to
HR issues (including discrimination and harassment) 45
Anti-corruption/bribery 36
Business integrity/interest conflicts 18
Fraud, money laundering, export control, etc. 10
Theft, sabotage, vandalism 11
Accounting 9
Environment, occupational health and safety 7
Antitrust law 3
Miscellaneous 57
Compliance & Anti-Corruption Hotline
SO3 Percentage of Employees Trained in the Identification
of Corruption Risks
The Head of the Corporate Compliance department reports
regularly to the Executive Board, every quarter to the audit committee of the Supervisory Board, and annually at the plena-
ry meeting of the Supervisory Board about, among other is-
sues, measures and procedures for the organization of anti-corruption.
In the scope of our risk-based on-site training plan, we hold
general compliance training courses on the topics of antitrust
law and corruption prevention. Among the roughly 190,000
employees worldwide, around 15,000 employees at all levels have received on-site training between the beginning of 2011
and the end of 2014. In addition to management personnel
from the various business units, those that are trained in partic-ular include employees from Purchasing, Sales, and Business
Development.
We also have an electronic learning program, available in ten
languages, on compliance and the Code of Conduct.
SO4 Action Taken in Response to Incidents of Corruption
In the reporting period, 36 entries were made via the compli-
ance and anti-corruption hotline under the category anti-corruption/bribery. Among these entries, seven have been
confirmed so far. They have been punished by disciplinary
measures such as extraordinary termination. Social Performance Indicators
Society
GRI Report 2014 Social Performance Indicators 31
SO5 Participation in the Forming of Political Will
Our standpoints on economic policy are expressed, for exam-
ple, in our annual reports; our interests are represented in the
specialist work of the associations and institutions to which we belong (see 4.13).
SO6 Contributions to Politi cal Parties and Politicians
(Additional Indicator)
As a matter of principle, Continental acts in a politically neutral
manner and does not give any donations or other monetary contributions to political parties, politicians, or related associa-
tions (e.g. voting associations). This restriction is firmly embed-
ded in the corporation's donations policy as well. Since the year under review, a "Political Action Committee" (PAC) has been active in the USA which manages donations from Continental employees who are US citizens and passes them on the politi-
cians and political parties.
SO7 Legal Action Against the Company for Anti-
Competitive Behavior (A dditional Indicator)
Information on this is provided in the Annual Report 2014 (see
"Other Disclosures" of the Annual Report) and, if necessary, our
interim financial reports.
SO8 Fines or Sanctions Against the Company Due to Non-
Compliance with Laws and Regulations
See SO7.
GRI Report 2014 Product Responsibility 32
Corporate Policy and Management Approach
Our responsibility extends over the entire life cycle of our prod-
ucts – starting with the raw materials used, product develop-
ment, and manufacture, to their use and subsequent recycling. To minimize the impact on health and the environment, Conti-
nental assumes development and production in accordance
with the best possible standards. It is up to customers to ensure that products are used for their intended purpose.
Our ISO 9001-certified quality management system, which is in
place at all of our sites worldwide and is subject to regular
recertification, contains detailed specifications regarding prod-
uct safety and quality. After all, they form the basis on which we fulfill the diverse range of requirements placed on us, for exam-
ple by our customers (such as reducing the fuel consumption
of vehicles).
Thanks to our products and technology, we not only enable this
to happen, but also constantly seek new ways to bring about further optimization. As a result, we make a valuable contribu-
tion to sustainable mobility. We consider the creation of prod-
ucts that significantly improve road safety to be yet another major benefit of our work to society. In addition to environmen-
tal protection, safety represents a focus of our work in research
and development.
PR1 Product Responsibility for Humans and the
Environment Across the Entire Life Cycle In development and production, we work to the highest stand-
ards in order to minimize the impa ct of our production activities
and products on health and the environment to the greatest
extent possible. When consuming raw materials, we ensure that
natural resources are used carefully. Our 14 product life cycle
assessments (11 in the Rubber Group, 3 in the Automotive Group) provide important information here. In production, we
plan to reduce energy and water consumption, CO
2 emissions,
and waste by 2020 (basis year: 2013). At the same time, we are
endeavoring to increase the recycling rate of industrial waste
year on year by 2%. See also EN 3, 8, 16, 22.
Special attention is paid to creating energy-efficient, safe, and
recyclable products (see also EN6). With the "Safety for all" con-
cept, the Chassis & Safety division is focusing not only on providing safety technologies in line with the various customer
and market requirements but also on enabling these technolo-
gies to be installed in all vehicle classes. We provide our cus-tomers with all relevant information to make it easier for them
to recycle our products. In the Automotive Group, this is
achieved by means of a recycling passport, which includes component drawings and material data and explains disman-
tling steps.
On the subject of noise emissions, Continental is involved in
initiatives for reducing tire and road noise, including the
SLENCE research project of the European Union, as well as the "Quiet Traffic" and "Quiet Road Traffic" projects in Germany. On the subject of CO
2 reduction in motor vehicles: The cross-
divisional flagship project HECO 2 is devoted to the reduction of
the CO 2 emissions of vehicles. The project structure emphasiz-
es the issues of thermodynamics, rolling resistance, energy consumption, 48V system prospects, energy management,
energy recovery, and simulation and efficiency management.
The goal is to apply innovative and integrated concepts to drive the technological development of the vehicle fleets of automo-
tive manufacturers forward in such a way that the ambitious
CO
2 reduction goals targeted worldwide can be realized. The
scope of the project extends as far as 2025.
PR2 Non-Compliance with Requirements Regarding
Product Responsibility (Additional Indicator)
Continental is continually subject to product liability lawsuits
and other proceedings in which customers and third parties accuse the company of alleged infringement of its duty of care,
non-compliance with warranty obligations, or material defects.
From 2006 to the end of 2014, the total costs for dealing with such claims and proceedings amounted to less than €50 mil-
lion annually.
PR3 Legally Required Obligations to Provide Information
Regarding Product Responsibility
A standardized labeling obligation for motor vehicle tires has applied within the European Union since November 2012. This
is aimed at enhancing road safety while reducing fuel con-
sumption: the EU tire label uses three criteria to indicate a tire's environmental and safety-relevant characteristics. Continental
provides the relevant information, which can also be accessed
online by our customers.
The EU's REACH directive (Registration, Evaluation, and Author-
ization of Chemicals) is relevant for both groups within the corporation. This directive stipulates detailed obligations to
provide the European Chemicals Agency (ECHA) with infor-
mation relating to specific substances. A substantial portion of the substances delivered to Continental had to be registered by
the manufacturers by the end of May 2013. To do this, com-
prehensive data on issues such as toxicity to humans, danger to the environment, and the safe us e of the substance had to be
gathered and collectively presented in reports for submission to ECHA. The data for secure use was determined jointly by the industries manufacturing and using them, such as Continental.
PR4 Non-Compliance with Regulations Concerning
Information and Labeling (Additional Indicator)
There were no known cases of non-compliance in the 2014
fiscal year.
PR5 Practices to Measure Customer Satisfaction
(Additional Indicator) In the 2014 fiscal year, Continental did not conduct any cus-
tomer surveys.
Product Responsibility
GRI Report 2014 Product Responsibility 33
PR6 Laws and Standards Relati ng to Product Advertising
Compliance with all the laws and regulations that apply to Con-
tinental and its subsidiaries, including the relevant laws regard-
ing the prevention of unfair competition, is part of our corpo-rate culture.
PR 7 Non-Compliance with Advertising Requirements
(Additional Indicator)
As a member of the German Ad vertisers' Association (OWM),
we adhere to the OWM's Code of Conduct. This contains rec-
ommendations regarding conduc t during collaboration be-
tween brand companies and the advertising industry. No major instances of non-compliance arose during the period under review. OWM-Code of Conduct
PR8 Complaints Regarding Breaches of Customer Data
Privacy
We received no complaints regarding customer data privacy in
fiscal year 2014.
PR 9 Fines for Non-Compliance with Legal Requirements
Regarding Product Usage (Additional Indicator) In fiscal year 2014, there were no known violations which re-
sulted in monetary fines due to non-compliance with laws and
regulations related to the provision and use of products and services.
GRI Report 2014 Communication on Progress to the UN Global Compact 34
Since 2012, Continental AG has participated in the Global Compac t of the United Nations (UN), which defines ten basic principle s
of corporate social responsibility for companies (human rights, labor, environment, and anti-corruption) and requires its membe r
companies to actively support this. The table displays the guid elines and management systems we use to support the implemen-
tation of these principles. It also summarizes our progress in their im plementation in 2014.
Principle Guidelines and systems Corrective actions Figures for 2014
Human Rights
Principle 1: Support
of human rights
Principle 2: Elimination of
human rights violations
› BASICS
corporate guidelines
› Principles of corporate social
responsibility
› Code of Conduct
› Supplier Code of Conduct
› Participation in the events
and discussions of the Ger-
man Global Compact Net-
work and other institutions.
› September 2014: Completion
of the e-learning training
course on our Code of Con-
duct, which also includes hu-
man rights issues. Of the ap-
proximately 59,000 employ-
ees invited, a total of 98%
took part worldwide.
Labor
Principle 3: Upholding of freedom
of association and right to collec-
tive bargaining
Principle 4: Elimination of all
forms of forced and compulsory
labor
Principle 5: Abolition of child labor
› BASICS
corporate guidelines
› Principles of corporate social
responsibility
› Supplier Code of Conduct
› Continental follows the "Tri-
partite Declaration of Princi-
ples concerning Multinational
Enterprises and Social Policy"
of the International Labor Or-
ganization (ILO) and the val-
ues outlined therein for its HR
policy.
› Around 70% of Continental's
employees are employed in
member states of the Organi-
zation for Economic Coopera-
tion and Development (OECD).
› We can assume, however, that
70% of our purchasing volume
for production materials is
with suppliers based in OECD
countries who therefore re-
spect and enable their em-
ployees' freedom of associa-
tion.
Principle 6: Elimination of discrim-
ination ›BASICS
corporate guidelines
› Principles of corporate social
responsibility
› Code of Conduct
› Supplier Code of Conduct
› Member of the "Charta der
Vielfalt" (German Diversity
Charter) ›Core areas: promotion of
gender and international di-
versity.
› Medium-term goal: 20%
women on the Supervisory
Board.
› Goal for 2020: 16% women
in management positions
(2013: 9%). › The percentage of interna-
tional managers in the corpo-
ration in 2014 stood at 40%
(2013: 40%), although the
workforce has grown.
› In 2014 we held a Diversity
Leadership training course to
sharpen our managers'
awareness of the issue in a
targeted way. The focus of the
training course was not pri-
marily placed on the defini-
tion and detailed description
of diversity, but rather on the
issue of the "unconscious bi-
as" and the effects of uncon-
scious distortions of percep-
tion on decision-making and
management behavior. Communication on Progress to the
UN Global Compact
GRI Report 2014 Communication on Progress to the UN Global Compact 35
Principle Guidelines and systems Corrective actions Figures for 2014
Environment
Principle 7: Precautionary envi-
ronmental protection
› Continental environment
strategy
› Environmental management
systems certified to ISO
14001 at 90% of environ-
mentally relevant locations
› Principles of corporate social
responsibility
› Continental mission
› Extensive investment in re-
search and technology to re-
duce energy consumption
and CO 2 emissions.
› Fourteen product life cycle
assessments prepared so far
in order to gain detailed in-
formation about environmen-
tal impact.
› Energy- and resource-efficient
production processes.
› Commissioning of new co-
generation plants at the Ger-
man Northeim and
Aachen sites.
› Commissioning of the new
solar power plant at the site in
Hefei, China
Principle 8: Promotion of greater
environmental responsibility
›Continental environmental
policy
› Environmental management
systems certified to ISO
14001 at 90% of environ-
mentally relevant locations
› Principles of corporate social
responsibility
› Code of Conduct ›Participation in CDP ques-
tionnaire. The process is
linked to a public ranking of
the company by the CDP
(Climate Disclosure Leader-
ship Index).
› Continental regularly assess-
es the level of certification to
ISO 14001 of the majority of
the suppliers with which it
already has contracts.
› New suppliers are surveyed
and assessed using a ques-
tionnaire on environmental
aspects. › Expansion of the energy
conservation program “Be
Energy Efficient” (BEE) to the
sites in Sumter, USA and Port
Elizabeth, South Africa. BEE is
intended to boost employees'
awareness of energy conser-
vation measures.
GRI Report 2014 Communication on Progress to the UN Global Compact 36
Principle Guidelines and systems Corrective actions Figures for 2014
Principle 9: Diffusion of environ-
mentally friendly technologies ›Continental environmental
policy
› Continental mission ›Extensive investment in re-
search and technology to re-
duce energy consumption
and CO 2 emissions.
› Increase in energy efficiency
across all phases of the prod-
uct life cycle.
› Promotion of the use of re-
newable raw materials such
as natural rubber and vege-
table oils.
› Continental is a member of
the Sustainable Natural Rub-
ber Project working group of
the International Rubber
Study Group and is involved
in research projects on the
topic of quiet traffic. › In 2014, we generated one-
third of our sales (approxi-
mately €11 billion) with prod-
ucts that are exceptionally
energy-efficient or lead to
demonstrably reduced emis-
sions of pollutants or CO 2
emissions.
› The project HECO 2 (Highly
Efficient CO 2) exploits the
light-weight design of our
products, resulting in a signif-
icant conservation of raw ma-
terials, as well as fuels in mo-
tor vehicle operation. An addi-
tional aspect of this develop-
ment initiative is the conser-
vation of energy through
more energy-efficient com-
ponents. Together with ener-
gy recovery and efficiency
management in vehicle oper-
ation, this leads to considera-
ble savings.
Anti-corruption
Principle 10: Measures against
corruption
› Code of Conduct
› Anti-corruption guideline
› Compliance department.
› Training programs for em-
ployees.
› E-learning program on anti-
corruption and antitrust law
(compulsory for all employ-
ees with a PC workstation).
› Compliance hotline for
employees and external per-
sons.
› By the end of 2014, around
15,000 employees at all
levels took part in an on-site
course on antitrust law and
corruption prevention.
2013.1Continental Aktiengesellschaft
Vahrenwalder Strasse 930165 HanoverGermanywww.continental-corporation.com
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