When Ferrari, the Italian luxury sports car manufacturer, committed to achieving carbon neutrality and to electrifying a large part of its car fleet, investors and employees applauded the new strategy. But among the company’s suppliers, the reaction was mixed. Many were nervous about how this shift would affect their bottom lines.

Harvard Business School professor Raffaella Sadun and Ferrari CEO Benedetto Vigna discuss how Ferrari collaborated with suppliers to work toward achieving the company’s goal. They also explore how sustainability can be a catalyst for innovation in the case, Ferrari: Shifting to Carbon Neutrality.

Key episode topics include: strategy, environmental sustainability, corporate social responsibility, luxury goods, ESG, climate change, car manufacturing, innovation

HBR On Strategy curates the best conversations and case studies with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

• Listen to the full Cold Call episode: Can Sustainability Drive Innovation at Ferrari?