Beyond Verra’s project certification, ClimateSeed has developed a comprehensive Project Evaluation Framework that assesses all critical dimensions of a project, including additionality, permanence, leakage, social safeguards and rights, benefit-sharing structures, biodiversity impacts, and co-benefits aligned with the Sustainable Development Goals (SDGs). ClimateSeed’s Project Evaluation Framework provides a thorough, multidimensional analysis, highlighting each project’s strengths and potential risks. This approach enables informed decision-making and ensures the highest standards of environmental and social integrity.

Based on the average price of EU-ETS credits in 2024, we defined an internal carbon price, i.e., a shadow price, to conduct cost-benefit analyses and reduce upstream value chain emissions on specific projects. The scopes covered by our internal carbon pricing scheme are: Category 3.1 - Upstream transportation and distribution, Category 3.2 - Downstream transportation and distribution, Category 4.1 - Purchased goods, Category 4.5 - Use of services.

Based on the average price of EU-ETS credits in 2024, we defined an internal carbon price, i.e., a shadow price, to conduct cost-benefit analyses and reduce upstream value chain emissions on specific projects. The scopes covered by our internal carbon pricing scheme are: Category 3.1 - Upstream transportation and distribution, Category 3.2 - Downstream transportation and distribution, Category 4.1 - Purchased goods, Category 4.5 - Use of services.

The scopes covered by our internal carbon pricing scheme are: Category 3.1 - Upstream transportation and distribution, Category 3.2 - Downstream transportation and distribution, Category 4.1 - Purchased goods, Category 4.5 - Use of services.

In 2024, 81 percent of Scope 1 emissions were covered by EU-ETS.

GHG intensity (All Scopes location-based) [tCO2eq / € million] 158.9; GHG intensity (All Scopes market-based) [tCO2eq / € million] 154.7.

GHG intensity (All Scopes location-based) [tCO2eq / € million] 158.9; GHG intensity (All Scopes market-based) [tCO2eq / € million] 154.7.

In addition, for the Equity Incentive Plan 2022-2024 and the Equity Incentive Plan 2023-2025, the innovation target has been replaced by an ESG target focusing on an Environment Factor and a Social Factor. The ESG target weighs 20 percent of the awards based on the achievement of defined objectives relating to environmental and social factors. In particular, 50 percent of the ESG Target is based on the reduction of CO2 carbon emissions and 50 percent is based on the maintenance of the Equal Salary certification.

In addition, for the Equity Incentive Plan 2022-2024 and the Equity Incentive Plan 2023-2025, the innovation target has been replaced by an ESG target focusing on an Environment Factor and a Social Factor. The ESG target weighs 20 percent of the awards based on the achievement of defined objectives relating to environmental and social factors. In particular, 50 percent of the ESG Target is based on the reduction of CO2 carbon emissions and 50 percent is based on the maintenance of the Equal Salary certification.

Ferrari's ambition to minimize its impact on the global environment is outlined in the Environmental Practice, which is inspired by the guiding principles set forth in the Code of Conduct and defines Ferrari’s main ambition to foster a corporate culture dedicated to environmental protection. The Practice applies to the entire Ferrari Group.

Ferrari considers environmental protection to be a decisive aspect to be promoted in its overall approach to business and it aims to continuously improve the environmental performance of its operations and comply with the provisions contained in applicable laws and regulations. For this reason, Ferrari aims to: reduce greenhouse gas emissions across the product life cycles, minimize water use, promote the reuse of waste materials in the production process, monitor emissions into the atmosphere and the sewage system, and contribute to the protection of biodiversity in areas impacted by its production process.

The Environmental practice sets out key principles: compliance with applicable regulatory and legal requirements, periodic and systematic establishment of improvement objectives and their monitoring and measurement through KPIs, the development of products that meet customers’ needs while ensuring respect for the environment, and the adoption of the best available technologies for the efficiency of production processes and the reduction of emissions and environmental impacts. The practice promotes, among others, the improvement of energy efficiency and the use of renewable energy aimed at mitigating climate change. In particular, it enshrines the Company’s commitment to monitor and reduce greenhouse gas emissions produced throughout the entire product life cycle, as well as reducing energy consumption. In line with the Environmental Practice commitments, we have developed the decarbonization strategy, which is reported in our 2022-2026 Strategic Plan. The practice covers the following IROs: “Energy consumption and related GHG emissions for upstream activities (e.g. raw material purchased and inbound logistics) (Scope 3) with negative impact on climate change”, “Energy consumption and related GHG emissions for downstream activities (e.g. outbound logistics, vehicles usage and use of sold products) (Scope 3) with negative impact on climate change”, “Energy consumption and related GHG emissions (Scope 1 / Scope 2) with negative impact on climate change and the community (e.g. Maranello)”, “Difficulties in targeting Ferrari Carbon Footprint strategy related to Scope 3 Indirect Emissions with main focus on Upstream”, “Energy efficiency - Using renewable energy at a reduced cost plus investing in low carbon technologies that could result in lower carbon footprint, lower energy consumption and lower energy costs”.

The monitoring and management of the environmental performance of our production plants is assigned to a team that reports to our Chief Technologies & Infrastructures Officer. Their effort is aimed at minimizing the impact of our activities on the environment, particularly in relation to the energy consumption of our production facilities.