Ferrari’s ambition to minimize its impact on the global environment is outlined in the Environmental Practice, which is inspired by the guiding principles set forth in the Code of Conduct and defines Ferrari’s main ambition to foster a corporate culture dedicated to environmental protection. The Practice applies to the entire Ferrari Group. Ferrari considers environmental protection to be a decisive aspect to be promoted in its overall approach to business and it aims to continuously improve the environmental performance of its operations and comply with the provisions contained in applicable laws and regulations. For this reason, Ferrari aims to: reduce greenhouse gas emissions across the product life cycles, minimize water use, promote the reuse of waste materials in the production process, monitor emissions into the atmosphere and the sewage system, and contribute to the protection of biodiversity in areas impacted by its production process. The Environmental practice sets out key principles: compliance with applicable regulatory and legal requirements, 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 emissions and environmental impacts. The practice promotes, among others, the improvement of energy efficiency and the use of renewable energy aimed at mitigating climate change. In particular, it enshrines the Company’s commitment to monitor and reduce greenhouse gas emissions produced throughout the entire product life cycle, as well as reducing energy consumption. In line with the Environmental Practice commitments, we have developed the decarbonization strategy, which is reported in our 2022-2026 Strategic Plan. The practice covers the following IROs: “Energy consumption and related GHG emissions for upstream activities (e.g. raw material purchased and inbound logistics) (Scope 3) with negative impact on climate change”, “Energy consumption and related GHG emissions for downstream activities (e.g. outbound logistics, vehicles usage and use of sold products) (Scope 3) with negative impact on climate change”, “Energy consumption and related GHG emissions (Scope 1 / Scope 2) with negative impact on climate change and the community (e.g. Maranello)”, “Difficulties in targeting Ferrari Carbon Footprint strategy related to Scope 3 Indirect Emissions with main focus on Upstream”, “Energy efficiency - Using renewable energy at a reduced cost plus investing in low carbon technologies that could result in lower carbon footprint, lower energy consumption and lower energy costs”. 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. Their effort is aimed at minimizing the impact of our activities on the environment, particularly in relation to the energy consumption of our production facilities.

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.