In 2022, a Climate Scenario Analysis was conducted to strengthen the resilience strategy, focusing on prospective climate change risks, both physical and transitional, for plants in Maranello and Modena and for the value chain. The analysis followed the most up-to-date methodologies available internationally, covering the 2030 to 2050 time-horizon. The choice of scenarios for physical and transitional risks is based on EU and international guidelines (i.e., EU Taxonomy and TCFD respectively), on climate literature, availability of impact studies, and likelihood of scenarios. The analysis included the geospatial coordinates of Maranello and Modena plants to understand their exposure to physical events. Precipitation, wind, and temperature logs from the local weather grid were analyzed to evaluate present trends and build reliable inferences on possible future trends. A detailed analysis of local sources such as the Modena/Maranello Civil Protection, ARPAE, and newspapers allowed to build an 'event history' database and contributed to the overall risk mapping. The analysis also considered the physical and transitional risks of suppliers, taking into consideration their location. The Climate Scenario Analysis considered the short, medium, and long term, specifically until 2026, from 2026 to 2035 and from 2035 to 2050.

Ferrari's decarbonization strategy is aligned with the trajectory 'well below 2°C' and entails a reduction of at least 90 percent of Scope 1 and 2 (market-based method) absolute CO2eq emissions and a reduction of at least 40 percent of Scope 3 emissions per car, with respect to 2021. The strategy includes launching a full electric Ferrari by 2025 and achieving a well-diversified product portfolio by 2026, composed of 55 percent hybrid, 5 percent full electric, and 40 percent ICE in terms of the number of models. By 2030, an offering composed of 20 percent ICE, 40 percent hybrid, and 40 percent full electric is expected. The strategy reflects the principle of flexibility, as the e-building houses the production of internal combustion engines, hybrid engines, and electric motors, capable of delivering Ferrari’s signature driving thrills. Together with the electrification journey, solutions to reduce the otherwise growing emissions of raw materials mainly related to the battery module and looking into recycled aluminum are being explored. The transition to a climate-neutral economy could be slowed down by locked-in GHG emissions. For Scope 1 and 2, certain processes cannot be converted to electricity yet. For Scope 3 downstream, the locked-in emissions depend on how the market will evolve in the coming years, in particular on the share of BEVs (Battery Electric Vehicle). However, it is important to point out that the higher the share of BEVs, the harder it is to reach the target set for Scope 3 upstream. Plans are being developed to reduce emissions from downstream ICEs, and in particular, various technologies, including alternative fuels, are being evaluated.

The Environmental Practice sets out key principles to manage IROs such as compliance with applicable regulatory and legal requirements, a 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 environmental impacts. These principles include pollution prevention.

We are aware of our potential impacts generated by the unlawful usage of substances of concern and substances of very high concern. For this reason and in compliance with the applicable laws and regulations (CE/1907/2006 – REACH regulation), we have defined strict procedures on the management of these substances. Where substitution is not possible, a derogation process must be initiated in accordance with the provisions of the procedure “CMR mixture/substances derogation”. According to this procedure, we require users to seek a non-hazardous substitute material and specific prevention and protection measures are put into place.

The main objective of the “Approval of auxiliary and direct materials, storage management” procedure is to define how materials, such as auxiliary and direct chemicals (articles, substances and preparation/mixtures), are acquired and used by employees. This ensures that all health and safety and environmental risks associated with these materials are evaluated and prevented before their entrance within the perimeter of our production sites. The procedure applies to our production sites and to all employees and non-employees. This procedure aims at preventing impacts and risks, as well as managing opportunities, such as our potential contribution to pollution due to substances of concern and substances of very high concern. Moreover, the procedure aims to avoid incidents and emergency situations, and, if they do occur, to control and limit their impact on people and the environment.

The Environmental Practice includes pollution prevention as a key principle to manage IROs.

We have implemented best practices to avoid or minimize the risk of harm in managing substances of concern and substances of very high concern, even though no specific pollution-related target has been set. Additionally, according to the procedures described above, we have put in place specific processes to monitor and track their right application also through periodic audits carried out by the Environmental and Energy and the Health & Safety teams. The results of the audits are recorded on a specific form and sent to all those in charge. The closure of anomalies and the verification of effectiveness are recorded and monitored by the Environment and Energy Department on a specific summary file.

In case no substitute material is available, substances of concern or very high concern are accepted under specific preventive measures. In this context, workers are protected from exposure and contact with hazardous substances through the implementation of closed cycles (processes or systems designed to minimize their exposure). These ensure that the use or transfer of hazardous materials occurs in sealed or controlled environments, reducing the risk of leaks, contamination or accidental exposure. Closed cycles aim at increasing safety for operators, reducing risk of incidents and reducing environmental impacts. These actions pertain to Ferrari production facilities (Ferrari S.p.A.) and have been already implemented in all processes where possible, and will remain in effect long-term, with regular quality checks as needed. In 2024, we implemented a closed cycle to manage cumene in our foundry. We aim to minimize the number of exposed workers and reduce the duration and intensity of workers’ exposure to the lowest technically possible value. No significant operational or capital expenditures have been allocated to these actions in 2024 or are planned for the future.

The Environmental Practice includes pollution prevention as a key principle to manage IROs.

We have implemented best practices to avoid or minimize the risk of harm in managing substances of concern and substances of very high concern, even though no specific pollution-related target has been set. Additionally, according to the procedures described above, we have put in place specific processes to monitor and track their right application also through periodic audits carried out by the Environmental and Energy and the Health & Safety teams. The results of the audits are recorded on a specific form and sent to all those in charge. The closure of anomalies and the verification of effectiveness are recorded and monitored by the Environment and Energy Department on a specific summary file.

In case no substitute material is available, substances of concern or very high concern are accepted under specific preventive measures. In this context, workers are protected from exposure and contact with hazardous substances through the implementation of closed cycles (processes or systems designed to minimize their exposure). These ensure that the use or transfer of hazardous materials occurs in sealed or controlled environments, reducing the risk of leaks, contamination or accidental exposure. Closed cycles aim at increasing safety for operators, reducing risk of incidents and reducing environmental impacts. These actions pertain to Ferrari production facilities (Ferrari S.p.A.) and have been already implemented in all processes where possible, and will remain in effect long-term, with regular quality checks as needed. In 2024, we implemented a closed cycle to manage cumene in our foundry. We aim to minimize the number of exposed workers and reduce the duration and intensity of workers’ exposure to the lowest technically possible value. No significant operational or capital expenditures have been allocated to these actions in 2024 or are planned for the future.

We have implemented best practices to avoid or minimize the risk of harm in managing substances of concern and substances of very high concern, even though no specific pollution-related target has been set. Additionally, according to the procedures described above, we have put in place specific processes to monitor and track their right application also through periodic audits carried out by the Environmental and Energy and the Health & Safety teams. The results of the audits are recorded on a specific form and sent to all those in charge. The closure of anomalies and the verification of effectiveness are recorded and monitored by the Environment and Energy Department on a specific summary file.