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.