Ferrari
ESRS disclosure: S2-4_18
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- Provide a detailed description of the internal functions involved in managing impacts within your organization. Specify the types of actions these functions undertake to address negative impacts and advance positive impacts. Include information on the process for setting targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities. Indicate whether and how your organization engaged directly with workers in the value chain, their legitimate representatives, or credible proxies with insight into their situation. Additionally, outline the resources allocated to the management of material impacts and evaluate the effectiveness of these actions.
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Question Id: S2-4_18
We are in the process of structuring an ESG Due Diligence activity on our suppliers; however, we have not yet formalized a specific action plan to address the material impacts, risks and opportunities on all workers in the value chain. This implies that we have yet to implement systematic measures to identify, assess and mitigate risks that may jeopardize the well-being of workers involved in the different stages of our value chain. Furthermore, we have not developed concrete strategies to exploit opportunities that may arise in relation to the management of labor rights and working conditions within the value chain. However, we recognize the importance of taking a proactive approach in this area and are actively working to structure our due diligence process with the aim of developing a strategic framework for action. The Drive Sustainability questionnaire and the Compliance Evaluation are preliminary activities for a more structured ESG Due Diligence activity also aimed at preventing the above-mentioned potential negative impacts on workers along the value chain. Before entering in any form of commercial collaboration with a supplier, we undertake a thorough assessment through the Compliance Evaluation process, which allows us to analyze the supplier from multiple angles, ensuring that it meets high ethical and legal standards. The main areas of analysis include anti-corruption, trade sanctions, money laundering, conflict of interest, ethics (including human rights) and reputation. On the other hand, the Drive Sustainability Questionnaire is mainly intended for those with whom a contract is already in place. Through the latter we request suppliers to provide detailed information regarding their social and environmental practices. In this questionnaire, we request general information regarding their code of ethics, implemented human rights policies and the existence of complaint mechanisms or formal complaint handling procedures. In addition, we ask for specific information on workers’ health and safety to ensure that the highest standards are met. In addition to social aspects, the questionnaire also includes questions on environmental issues. In particular, we examine the responsible sourcing of raw materials and the sustainable management of the entire value chain. This holistic approach allows us not only to assess the current practices of our suppliers, but also to promote a collective commitment to sustainability and social responsibility within our supply chain.
Report Date: 4Q2024Relevance: 60%