Our decarbonization strategy is aligned with the trajectory 'well below 2°C' and entails a reduction of at least 90 percent of our Scope 1 and 2 (market-based method) absolute CO2eq emissions and a reduction of at least 40 percent of our Scope 3 emissions per car, with respect to 2021.

The identified material climate-related risks are classified as follows:

Physical Risks for Maranello and Modena facilities:

• Acute: Increased Hail Frequency and Severity, Increase of Summer Blackout, Increase in Flooding Risk, Increased Wind Storm Severity, Increase in Drought Risk and Water Stress, Increase in Wildfires Risk.
• Chronic: Gas Equipment Production Reduction, Fuel Cell Efficiency Reduction, Health Hazards Accelerating invasion potential of disease vectors, Increased Heat Waves Frequency and Length, Increase in Mean Temperature, Solar Panel Production Reduction.

Physical Risks for supply chain:

• Acute: Increased Drought Exposure, Hydrogeologic Risk, Increased Flooding Exposure, Acute Climate Risk on Countries Extracting Critical Materials.
• Chronic: Increased Chronic Risk Exposure, Chronic Climate Risk on Countries Extracting Critical Materials.

Transition Risks organization worldwide:

• Market: Failure in Intercepting Favourable Markets, Failure in Aligning with Countries Climate Ambitions, Disalignment with Peers Transition Plans, Exposure to Critical Materials Price Soar, CBAM Induced Increased Costs of Extra EU Supplies, Future Hypothetical Carbon Tax.
• Normative: Failure in Aligning with Countries Targets, Failure in Aligning with Cities Targets.
• Reputational: Penalty Fees for Exceeding Vehicle Emission Mandates, Change in climate induced luxury perception.
• Technology: Supply Shortages of Critical Materials, Scarcity of Components and Materials Needed for the PV Arrays.