Case study: How Continental promotes sustainability across its supply chain
Continental develops pioneering technologies and services for the sustainable and connected mobility of people and their goods, offering safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. As set out in its sustainability ambition, Continental strives for 100% responsible business partnerships and sourcing by 2050 at the latest, together with its partners along its value chain including, most importantly, suppliers.
This case study is based on the 2020 Integrated Sustainability Report by Continental, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Continental selects its suppliers carefully and monitors them regularly, so as to make sure that they share its values and sustainability commitments. Tweet This! In order to promote sustainability across its supply chain Continental took action to:
- promote compliance
- assess suppliers’ performance
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With this case study you will see:
- Which are the most important impacts (material issues) Continental has identified;
- How Continental proceeded with stakeholder engagement, and
- What actions were taken by Continental to promote sustainability across its supply chain
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What are the material issues the company has identified?
In its 2020 Integrated Sustainability Report Continental identified a range of material issues, such as safe mobility, carbon neutrality, long-term value creation, innovation and digitalisation. Among these, promoting sustainability across its supply chain stands out as a key material issue for Continental.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Continental engages with:
| Stakeholder Group | Method of engagement |
| Customers | · Sales department or key account management · Cooperation initiatives · Trade fairs |
| Investors and shareholders
| · Annual Shareholders’ Meeting · Webcasts · Roadshows |
| Employees | · Town hall meetings · Employee surveys · Webcasts · Employee representatives |
| General public | · Surveys · Trade fairs · Engagement projects · Open houses / days |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Continental engaged with its stakeholders through a survey of more than 1,700 stakeholders across all groups.
What actions were taken by Continental to promote sustainability across its supply chain?
In its 2020 Integrated Sustainability Report Continental reports that it took the following actions for promoting sustainability across its supply chain:
- Promoting compliance
- The transformation toward a fully and universally responsible value chain begins with concrete requirements that Continental already sets out for its direct suppliers: in its Business Partner Code of Conduct, as well as in its sourcing policy for the purchase of sustainable natural rubber, Continental defines the fundamental requirements for its suppliers, and for their suppliers in turn, including with regard to human rights, working conditions, environmental protection and anti-corruption. Violations of Continental’s regulations can also be reported via the Compliance & Anti-Corruption Hotline, which is available around the clock and worldwide. In the event that violations of Continental’s binding regulations are identified, Continental demands improvements and reserves the right to terminate the business relationship.
- Assessing suppliers’ performance
- Continental assesses its suppliers with the help of self-assessment questionnaires via the generally accepted sustainability platforms for its industries, EcoVadis and NQC. Before even establishing a business relationship, Continental also checks potential new suppliers and service providers by means of self-assessments as well as on-site audits, which may also include sustainability topics (such as fire protection and occupational safety). The total number of valid available self-assessment questionnaires completed by suppliers via the two sustainability platforms EcoVadis and NQC is used as a key performance indicator for the implementation of Continental’s concept with respect to a responsible value chain. As at December 31, 2020, valid self-assessment questionnaires from 696 suppliers were available. This corresponds to a completion rate of 59% of suppliers selected for this process.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-1 New suppliers that were screened using environmental criteria
2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken
3) Disclosure 414-1 New suppliers that were screened using social criteria
4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by Continental, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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