The Board of Directors designs, implements, and maintains internal risk management and control systems. The Ferrari Leadership Team is responsible for the deployment and maintenance of a risk management system across business functions. Each function involved is accountable for implementing controls and procedures to manage relevant negative and positive impacts with support from the sustainability function.

The Chief Financial Officer, a member of the FLT and Head of the ESG Strategic Committee, is responsible for the sustainability function. It oversees the sustainability activities within the Group, promoting dialog between different teams and functions, identifying impacts and opportunities as well as supporting risk identification. The Chief Financial Officer periodically reports back to the Board of Directors on the management of the organization’s impacts, as well as the setting and progress of ESG targets and the definition of remediation plans if required.

All Board Members have knowledge and expertise on business ethics, corporate governance and regulatory affairs. Moreover, more than half of Board Members have developed experiences in social engagements and environmental issues.

All Board Members have knowledge and expertise on business ethics, corporate governance and regulatory affairs. Moreover, more than half of Board Members have developed experiences in social engagements and environmental issues.

All Board Members have knowledge and expertise on business ethics, corporate governance and regulatory affairs. Moreover, more than half of Board Members have developed experiences in social engagements and environmental issues.

In 2024, the Board of Directors met four times, achieving an attendance rate of 95.46 percent. The Board of Directors was informed twice by the Chief Financial Officer and the Chief Human Resources Officer about material IROs and in particular, the activities implemented to reach Carbon Neutrality, the educational projects with the local community and the diversity and inclusion progress, as well as employee development. All the discussed topics are linked to specific IROs that resulted as relevant in the double materiality assessment.

Due diligence is an ongoing practice that responds to and may trigger changes in the company’s strategy, business model, activities, business relationships, operating, sourcing and selling contexts. The actions described in the paragraphs referenced in the above are the starting point of a structured ESG due diligence activity, which will be extended to all suppliers in the coming years.

We take an integrated approach to risk management, where risk assessment is part of the leadership team agenda. The Board of Directors is responsible for considering the ability to control and manage risks crucial to achieve its identified business targets and to ensure continuity of the Group. The Board of Directors designs, implements, and maintains internal risk management and control systems. In executing such responsibilities, it is assisted by the Audit Committee, which is responsible for advising the Board of Directors and acts under the authority delegated by the Board of Directors with reference to internal controls and risk management systems. The Ferrari Leadership Team is responsible for the deployment and maintenance of a risk management system across our business functions.

In 2024, the Board of Directors was informed about material IROs and in particular, the activities implemented to reach Carbon Neutrality, the educational projects with the local community and the diversity and inclusion progress, as well as employee development. All the discussed topics are linked to specific IROs that resulted as relevant in the double materiality assessment.

In 2024, the Board of Directors met four times, achieving an attendance rate of 95.46 percent. The Board of Directors was informed twice by the Chief Financial Officer and the Chief Human Resources Officer about material IROs and in particular, the activities implemented to reach Carbon Neutrality, the educational projects with the local community and the diversity and inclusion progress, as well as employee development. All the discussed topics are linked to specific IROs that resulted as relevant in the double materiality assessment.

The description below summarizes the guidelines and the principles followed by Ferrari in order to define and implement the remuneration policy applicable to the executive Directors and non-executive Directors of the Company, as well as members of the Ferrari Leadership Team (FLT). The form and amount of compensation received by the Directors of Ferrari for the year ended December 31, 2024, was determined in accordance with the remuneration policy. The Compensation Committee oversees the remuneration policy, remuneration plans and practices of Ferrari and recommends changes when appropriate. The Committee is solely comprised of non-executive Directors from the Board of Directors who are independent pursuant to the Dutch Corporate Governance Code (the “Code”). Ferrari’s current remuneration policy was approved by shareholders at the 2024 AGM and will be resubmitted to a vote by the Company’s General Meeting at least every four years. The Board of Directors determines the compensation for our executive Directors following the recommendation of the Compensation Committee and with reference to the remuneration policy. The compensation structure for executive Directors and FLT members includes a fixed component and a variable component based on short and long-term performance. Our remuneration policy is aligned with Dutch law and the Code. In particular, the Code requires listed companies to disclose certain information about the compensation of their Board and executive Directors. Through this remuneration strategy, Ferrari fulfills the requirements of the Code ensuring full transparency with our shareholders. The main goal of Ferrari’s remuneration strategy is to develop a system which consistently supports the business strategy and value creation for all shareholders, establishing a compensation structure that allows us to attract and retain the most highly qualified executive talents and motivate such executives to achieve business and financial goals that create long-term value for shareholders in a manner consistent with our core business and leadership values and taking into account the social context around the Company.