Ferrari’s value chain involves a diverse range of people across various sectors and geographical locations. Alongside our own workforce, workers within the value chain also play a fundamental role. Upstream workers are part of the supply chain that provides raw materials, components and services to Ferrari. They include metal and mineral extraction workers, involved in the extraction and refining of metals used in the production process, and workers engaged in the production of components and materials. In particular, regarding supply chain workers engaged in the mining and processing of tantalum, tin, tungsten and gold (collectively, ‘3TG’ or ‘Conflict Minerals’), Ferrari maps its supply chain to gain awareness of the sourcing status of 3TG materials from potential conflict zones to avoid knowingly using conflict minerals that support or fund inhumane treatment, including human trafficking, slavery, forced labor, child labor, torture and war crimes. At the end of this monitoring, Ferrari prepares a Final Report to be submitted to the SEC. In cases where high-risk suppliers are identified, the Compliance Department and the Management of the Purchasing Department determine the intervention strategy to be adopted. At the end of each year, the results of the above-mentioned campaign are shared with the relevant buyers to ensure the implementation of any actions defined by Compliance and Management. Downstream workers include mostly dealers responsible for selling Ferrari cars and logistics workers that manage the transportation and delivery of vehicles and parts. In addition, workers operating on our sites that are not part of our own workforce (i.e. temporary workers) include consultants, and employees of cleaning and temporary building maintenance companies. Currently, we do not have detailed information on the presence of value chain workers who could be particularly vulnerable to the negative impacts identified through the Double materiality analysis. Furthermore, we have a few workers involved in the joint venture with which we collaborate.

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.

Ferrari considers environmental protection a decisive aspect to be promoted in its overall approach to business. 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. For additional information about the Environmental Practice, please refer to the “E1—Climate change—Our policy” paragraph. During the year, we conducted a screening on our site locations and business activities to assess and evaluate pollutants and substances of concern and very high concern. Additionally, during our materiality analysis, we also considered the impacts on our entire value chain, although we have not carried out consultations with affected communities on this topic. Regarding substances of concern and substances of very high concern, two specific procedures have been approved: the “Approval of auxiliary and direct materials, storage management” and the “CMR mixture/substances derogation”. Our procedures take into account all substances involved in the analysis. However, there is no specific procedure for each single substance. 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. According to this procedure, each area must exclusively use chemicals, for its respective area, that have passed the approval process, which considers health, safety and environmental aspects. In particular, product classified under current regulations as carcinogenic, mutagenic, and toxic for reproduction are not supposed to be used, since Legislative Decree No. 102 of 30 July 2020 requires a progressive phase-out of substances classified under those hazard categories. 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. In addition, within “Approval of auxiliary and direct materials, storage management”, specific rules are set for storage and handling of hazardous substances as well as the periodic monitoring and control of usage area and methods to prevent incidents and emergency situations. The most senior level accountable for the implementation of the procedures is the Chief Technologies and Infrastructures Officer.

To draft the Environmental Practice, the interests of stakeholders have been considered at a general level, particularly those identified as the addressees of the Practice. Ferrari considers the engagement of its suppliers and its sales partners, as well as the local authorities and communities, to be crucial to uphold its environmental principles and commitments.

Ferrari ensures the internal and external dissemination of the Practice. Please refer to the Ferrari corporate website at the following link https://www.ferrari.com/en-EN/corporate/practices.

At present, our Environmental Practice does not cover adaptation to climate change.

At present, our Environmental Practice does not cover adaptation to climate change.

We defined our environmental targets, included in our 2022-2026 Strategic Plan, aligned with the Transport Science-Based Target setting Guidance of 2015 aligned with the trajectory 'well below 2°C'. The GHG emission reduction targets and the related action plan were reviewed by the Board of Directors. Below our emissions targets: a) carbon neutrality in our own operations already starting from 2021, through high-quality projects with climate and social contributions (decreasing by at least 90 percent our Scope 1 and 2 (market-based method) absolute CO2eq emissions - CO2, CH4, N2O and HFCs - by 2030 versus 2021); b) reduction of at least 40 percent of our Scope 3 emissions (CO2, CH4, N2O) per car, focusing mainly on materials and vehicle use phase. In particular, we aim to reduce upstream emissions by 30 percent per car and downstream emissions by 50 percent per car by 2030 versus 2021.

The targets are: a) Carbon neutrality in our own operations by decreasing at least 90 percent of Scope 1 and 2 (market-based method) absolute CO2eq emissions by 2030 versus 2021. b) Reduction of at least 40 percent of Scope 3 emissions per car by 2030 versus 2021, with a focus on materials and vehicle use phase. The targets are absolute and measured in CO2eq emissions.

The targets are: a) Carbon neutrality in our own operations by decreasing at least 90 percent of Scope 1 and 2 (market-based method) absolute CO2eq emissions by 2030 versus 2021. b) Reduction of at least 40 percent of Scope 3 emissions per car by 2030 versus 2021, with a focus on materials and vehicle use phase. The targets are absolute and measured in CO2eq emissions.