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.

In 2022, a Climate Scenario Analysis was conducted to strengthen the resilience strategy, focusing on prospective climate change risks, both physical and transitional, for plants in Maranello and Modena and for the value chain. The analysis followed the most up-to-date methodologies available internationally, covering the 2030 to 2050 time-horizon. The choice of scenarios for physical and transitional risks is based on EU and international guidelines (i.e., EU Taxonomy and TCFD respectively), on climate literature, availability of impact studies, and likelihood of scenarios. The analysis included the geospatial coordinates of Maranello and Modena plants to understand their exposure to physical events. Precipitation, wind, and temperature logs from the local weather grid were analyzed to evaluate present trends and build reliable inferences on possible future trends. A detailed analysis of local sources such as the Modena/Maranello Civil Protection, ARPAE, and newspapers allowed to build an 'event history' database and contributed to the overall risk mapping. The analysis also considered the physical and transitional risks of suppliers, taking into consideration their location. The Climate Scenario Analysis considered the short, medium, and long term, specifically until 2026, from 2026 to 2035 and from 2035 to 2050.

In 2022, a Climate Scenario Analysis was conducted to strengthen the resilience strategy, focusing on prospective climate change risks, both physical and transitional, for plants in Maranello and Modena and for the value chain. The analysis followed the most up-to-date methodologies available internationally, covering the 2030 to 2050 time-horizon. The choice of scenarios for physical and transitional risks is based on EU and international guidelines (i.e., EU Taxonomy and TCFD respectively), on climate literature, availability of impact studies, and likelihood of scenarios. The analysis included the geospatial coordinates of Maranello and Modena plants to understand their exposure to physical events. Precipitation, wind, and temperature logs from the local weather grid were analyzed to evaluate present trends and build reliable inferences on possible future trends. A detailed analysis of local sources such as the Modena/Maranello Civil Protection, ARPAE, and newspapers allowed to build an 'event history' database and contributed to the overall risk mapping. The analysis also considered the physical and transitional risks of suppliers, taking into consideration their location. The Climate Scenario Analysis considered the short, medium, and long term, specifically until 2026, from 2026 to 2035 and from 2035 to 2050.

In 2022, a Climate Scenario Analysis was conducted to strengthen the resilience strategy, focusing on prospective climate change risks, both physical and transitional, for plants in Maranello and Modena and for the value chain. The analysis followed the most up-to-date methodologies available internationally, covering the 2030 to 2050 time-horizon. The choice of scenarios for physical and transitional risks is based on EU and international guidelines (i.e., EU Taxonomy and TCFD respectively), on climate literature, availability of impact studies, and likelihood of scenarios. The analysis included the geospatial coordinates of Maranello and Modena plants to understand their exposure to physical events. Precipitation, wind, and temperature logs from the local weather grid were analyzed to evaluate present trends and build reliable inferences on possible future trends. A detailed analysis of local sources such as the Modena/Maranello Civil Protection, ARPAE, and newspapers allowed to build an 'event history' database and contributed to the overall risk mapping. The analysis also considered the physical and transitional risks of suppliers, taking into consideration their location. The Climate Scenario Analysis considered the short, medium, and long term, specifically until 2026, from 2026 to 2035 and from 2035 to 2050.

For the analysis of physical risks, three different time horizons were considered:

• 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).

In the Scenario Analysis, the short, medium, and long term were specifically considered until 2026, from 2026 to 2035, and from 2035 to 2050.

In 2022, a Climate Scenario Analysis was conducted to strengthen the resilience strategy, focusing on prospective climate change risks, both physical and transitional, for plants in Maranello and Modena and for the value chain. The analysis followed the most up-to-date methodologies available internationally, covering the 2030 to 2050 time-horizon. The choice of scenarios for physical and transitional risks is based on EU and international guidelines (i.e., EU Taxonomy and TCFD respectively), on climate literature, availability of impact studies, and likelihood of scenarios. The analysis included the geospatial coordinates of Maranello and Modena plants to understand their exposure to physical events. Precipitation, wind, and temperature logs from the local weather grid were analyzed to evaluate present trends and build reliable inferences on possible future trends. A detailed analysis of local sources such as the Modena/Maranello Civil Protection, ARPAE, and newspapers allowed to build an 'event history' database and contributed to the overall risk mapping. The analysis also considered the physical and transitional risks of suppliers, taking into consideration their location. The Climate Scenario Analysis considered the short, medium, and long term, specifically until 2026, from 2026 to 2035 and from 2035 to 2050.

Ferrari's decarbonization strategy is aligned with the trajectory 'well below 2°C' and entails a reduction of at least 90 percent of Scope 1 and 2 (market-based method) absolute CO2eq emissions and a reduction of at least 40 percent of Scope 3 emissions per car, with respect to 2021. The strategy includes launching a full electric Ferrari by 2025 and achieving a well-diversified product portfolio by 2026, composed of 55 percent hybrid, 5 percent full electric, and 40 percent ICE in terms of the number of models. By 2030, an offering composed of 20 percent ICE, 40 percent hybrid, and 40 percent full electric is expected. The strategy reflects the principle of flexibility, as the e-building houses the production of internal combustion engines, hybrid engines, and electric motors, capable of delivering Ferrari’s signature driving thrills. Together with the electrification journey, solutions to reduce the otherwise growing emissions of raw materials mainly related to the battery module and looking into recycled aluminum are being explored. The transition to a climate-neutral economy could be slowed down by locked-in GHG emissions. For Scope 1 and 2, certain processes cannot be converted to electricity yet. For Scope 3 downstream, the locked-in emissions depend on how the market will evolve in the coming years, in particular on the share of BEVs (Battery Electric Vehicle). However, it is important to point out that the higher the share of BEVs, the harder it is to reach the target set for Scope 3 upstream. Plans are being developed to reduce emissions from downstream ICEs, and in particular, various technologies, including alternative fuels, are being evaluated.