Our decarbonization levers to reach Carbon Neutrality by 2030 include:

• Energy efficiency & use of renewable sources: Phasing out of our trigeneration plant by 2024, installation of photovoltaic panels since 2023.
• Our products: Launch of the first full electric Ferrari by 2025, engine production with 100% recycled alloy by 2026, use of recycled materials in our products ongoing.
• Carbon Avoidance: Purchase of Carbon Credits in partnership with ClimateSeed since 2022.
• Constant dialogue with partners: Introduction of Hydrotreated Vegetable Oil (HVO) fuel in our European outbound logistics on road since 2023, launch of the Green Dealer Award since 2023.

These actions are aligned with our targets to reduce Scope 1 and 2 emissions by 90% and Scope 3 emissions by 40% per car by 2030 compared to 2021.

With regard to transition scenarios analysis, according to different scenarios, transition speeds might vary greatly in the next two decades. The assessment of transition climate-related risks is based on a qualitative and quantitative climate-related scenario analysis. We take into account prospective scenarios for technological development, market conditions and normative evolutions. These scenarios are based on the IEA (namely NZE, APS and STEPS scenarios), a world agency providing analysis and advisory services to governments on energy issues, combined with many different literature studies, based on the definition of a climate ambition and technology progress parameter. Also, IPCC SSP scenarios were used to create charging infrastructure projections. The overall structure of the analysis relies on the pairing of physical and transition scenarios following the combinations: (1) SSP1/NZE- (2) SSP2/APS- (3) SSP3-5/STEPS:

• The Net Zero Emissions by 2050 Scenario (NZE) is a normative scenario that shows a pathway for the global energy sector to achieve net zero CO2 emissions by 2050, with advanced economies reaching net zero emissions in advance of others. It is consistent with limiting the global temperature rise to 1.5 °C with no or limited temperature overshoot (with a 50 percent probability). It is consistent with an RCP2.6 scenario. It is compatible with the SSP1 IPCC scenario, where the world follows a sustainable development pathway, with inequalities reduced, strong convergence between developing and developed countries, and strong climate action;
• In the APS scenario, countries fully implement their national targets to 2030 and 2050. It is a “business as usual” scenario. It is consistent with a low range of the RCP4.5 scenarios. It is compatible with the SSP2 IPCC scenario which is a business-as-usual scenario;
• The STEPS provides a conservative benchmark for the future, as it does not take for granted that governments will reach all announced climate goals. It explores where the energy system and other sectors might go without a major additional effort from policy makers. It is consistent with a high RCP4.5 (low RCP8.5) scenario, and compatible with SSP3-SSP5 IPCC scenarios. The SSP5 is a scenario with a strong technological development sustained, however, by fossil fuels, while the SSP3 is a “divided” world scenario, featuring strong inequalities and competition for resources between nations.

To identify transitional risks, we analyzed, for each country in which Ferrari operates through points of sale, the regulatory situation concerning the ICE powertrain. This enabled us to identify the countries in which a restriction on the sale of ICE could be imposed. Moreover, we analyzed the targets set at national level in terms of the number of charging points for BEVs. With regard to the market, we also took into account the societal momentum around climate action, always guided by our scientific and holistic approach to address emission across sectors. The transition scenario analysis also took into consideration the issue of raw material shortage among its assumptions, while considering that it is partly caused by climate change and increased demand (with a consequence on prices) for certain types of critical materials needed to support the electric transition.