Has your company defined short-, medium-, and long-term time horizons in relation to anticipated financial effects from material physical and transition risks, as well as potential climate-related opportunities? Additionally, explain how these definitions are linked to the expected lifetime of your assets, strategic planning horizons, and capital allocation plans, in accordance with the processes to identify and assess material climate-related impacts, risks, and opportunities.

Question

Accepted Answer

For the analysis of physical risks, we considered three different time horizons:
short term – from 0 to 2 years
medium term – from 2 to 5 years
long term – from 5 to 8 years (the value eight is an indicative value, for specific risks that we already consider, the time horizon could be longer).
All of these risks have to be explored into our risk tables, strategic planning horizons and capital allocation plans.

Ferrari

ESRS disclosure: E1.IRO-1_05

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