Ferrari

RATING

SECTOR

Automotive

WEBSITE

CONTACT

Via Alfredo Dino Ferrari, 43, 41053 Maranello MO, Italy
Tel: +39 0536 949713
Fax: N/A
Email: museo@ferrari.com

STOCK EXCHANGE

LISTING

  • #51 World’s Best Employers 2020
  • #1149 Global 2000 2020
  • #2 Top Regarded Companies 2019 
  • #156 Top Multinational Performers 2017

EMPLOYEES

4,285

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Ajith Thangavelautham

Ferrari

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 
 
 

Company Activity

Ferrari is a manufacturer of luxury sports cars out of Maranello, Italy. The Ferrari car models are the following: F12Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, the LaFerrari Hybrid, LaFerrari and the FF four-wheel drive. 

Ferrari is a consistent participant in Formula One, and international auto race. In 2018, the Ferrari 250 GTO model became the most expensive car in history, with a selling price of $70 million. 

The company was founded in 1947 by Enzo Anselmo and is headquartered in Italy. 

Company Sustainability Activity

Ferrari’s comments regarding sustainability practices:

“We are committed to creating a culture of sustainability. Creating such a culture requires effective risk management, responsible and proactive decision-making, and innovation. their efforts are aimed at minimizing the negative impacts of their business. Their risk management approach is an important business driver and it is integral to the achievement of the Group’s long-term business plan. We take an integrated approach to risk management, where risk and opportunity assessment are at the core of the leadership team agenda.”

Highlights

  • In 2008, Ferrari installed the first solar panels and subsequently increased capacity in 2011 and 2015
  • Since 2014, Ferrari S.p.A. has been purchasing electricity with Guarantee of Origin certificates
  • In 2019, the trigeneration plant produced 83% of the electricity needed for the Maranello plant, while the remaining 17% originated from renewable sources

Targets

  • Ferrari has set a target to reduce CO2 emission by 15% on its entire fleet by 2020 (compared to 2014)
  • By 2022 nearly 60% of the models with a hybrid powertrain

Progress

  • Replacement of traditional illumination systems to LED technology and the use of pumps with inverter technology in the industrial water distribution system
  • In 2019, completed the office area and workshop area of the New Technical Center, while the engine and hybrid test benches will be completed in 2020
  • Innovative solutions and advanced technical processes minimize waste and negative environmental impact; the reuse of production scraps in the manufacturing process also has the objective of reducing waste
  • Developed a series of initiatives to reduce water consumption in their manufacturing processes, such as cooling systems with water recirculation (e.g. cooling towers)
  • In 2019, achieved a 35% reduction in CO2 emissions (compared to 2007) for their European fleet through improvements in energy efficiency
 

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 4 & 8

  • Encourage strategic partnerships and the creation of positive externalities for all stakeholders.
    Material topic
    • Economic and financial performance
    • Education
    • Local communities
    • Industrial relations

SDG 5

  • Provide an inclusive, educational and inspiring work environment to unleash everyone’s passion, creativity and talent.
    • Human capital
    • Health and safety
    • Work-life balance and employees wellness
    • Diversity inclusion and non-discrimination

SDG 9

  • Drive technological innovation while pursuing excellence in design and craftsmanship to fuel the passion of their customers and fans.
    • Image and brand reputation
    • Innovation: technology and design
    • Quality and safety of products and customers
    • Customer satisfaction
    • Responsible communication and marketing

SDG 13

  • Increase their environmental awareness to continuously set and implement related programs and actions.
    • Emissions
    • Environmental commitment

SDG 16 & 17

  • Maintain Ferrari’s corporate governance and risk management systems aligned with best practices to ensure an ethical business conduct while providing superior and sustainable returns to their shareholders.
    • Ethical business conduct
    • Risk management and Compliance
    • Supply chain responsible management 
    • Relationship with Institutions and Authorities
    • Relationship with sponsors

Secondary SDGs: 3, 7, 12 

In the annual report, Ferrari states a few points about the company’s progress and targets. Ferrari does address SDGs in their annual report but the content is scarce.

The emissions produced for car fleets have been reduced over the past 10 years, but “the total energy consumption within the Group for 2019 was 1,733,926 GJ, with an increase of 4.8% from 2018 (1,654,895 GJ)”.

In addition, “the Mugello racing circuit is located in an extremely important natural landscaping area.” The company is aware of their environmental footprint yet, they are still harming the environment with the amount of emissions produced and lack of consideration for biodiversity and important land. Given these issues, Ferrari has been given a negative “C” rating. 

Analyst Outlook: Negative

Emissions have increased and SDGs have limited description. Ferrari should continue to improve the sustainability of their products and achieve the relevant certifications.

 

Key Points

  • Few certifications, listings, and awards
  • Limited SDG and target descriptions
  • The company does not have a sustainability officer
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