Governance

Our Board's statutory responsibilities encompass legal compliance, financial integrity, risk management and ethical conduct, while also promoting social responsibility, environmental sustainability and stakeholder engagement.

Board members abide by their Directors' Duties under the UK Companies Act 2006. By discharging their responsibilities diligently, the Board fosters transparency, accountability and the long-term sustainability of our organisation.

Our compliance with statutory financial reporting obligations is achieved through rigorous internal controls and robust audit processes. We adhere to all relevant accounting standards and regulatory requirements, ensuring the accuracy and transparency of our financial statements and other regulatory filings.

We have a well-resourced and dedicated team that works closely with our sport’s regulator, the Fédération Internationale de l'Automobile (FIA), to ensure compliance with Formula One’s Financial Regulations (Cost Cap).

Full-year Financial Regulation submissions are audited by the independent statutory auditor as well as the FIA. In addition, interim reporting is provided to, and audited by, the FIA who also carry out in-season visits and audits.

We have been awarded a Certificate of Compliance by the FIA, confirming our adherence to the Financial Regulations for all reporting periods under the Cost Cap.

Climate-related financial disclosure (UK CFD) reporting was included for the first time in our 2023 Financial Statements. These UK CFD disclosures provide transparency about how we address climate change in corporate governance, risk management, strategy and target setting.

As part of our commitment to continuous improvement in governance standards, we launched a Governance Working Group in 2023, led by our Chief Financial Officer, ensuring top-level engagement and leadership.

Recognising the importance of diversity of thought, the group comprises team members from different departments and at different levels of seniority. The expertise of members covers sustainability, commercial, finance, people, risk, communications, IT, sporting, ethics, compliance and legal.

The Governance Working Group is tasked with upholding robust and effective governance standards through regular cross-functional reviews of relevant business activities, processes, and controls, while continuously advancing practices and mechanisms to ensure alignment with our governance aims and ambitions.

We monitor changes to statutory responsibilities by regular review of regulatory updates, active participation in industry associations, horizon scanning and engagement with legal and compliance experts.

With numerous changes expected in ESG regulations and disclosures, remaining proactive and well-informed enables us to adapt effectively, thereby minimising risks and maintaining our operational integrity and efficiency.

As part of our ongoing commitment to the enhancement of our governance, risk, and compliance practices, we will be conducting a corporate governance landscape review with the support of external experts in 2024. This activity is designed to ensure that our governance processes are up to date with best practice, and importantly, that they remain fit for the future.

The environment in which we operate is constantly evolving and increasing in complexity. In 2023, following a transition to an independent group status, we implemented a revised and bespoke Governance, Ethics and Compliance (GEC) Framework for our team.

The GEC framework, underpinned by our PRIDE values, comprises our Integrity Code and associated policies and procedures.

Our approach allows us to operate responsibly within the fast-paced environment of Formula One while protecting all our stakeholders. We are committed to ensuring that the GEC Framework is embedded and continuously evaluated and improved.

Our goal is to provide team members with the appropriate resources and knowledge to make the right decisions, and to carry out day-to-day activities in an ethical and responsible manner, often going further than legal requirements, and always in accordance with our statutory responsibilities.

The policy framework enables us to take a structured and tailored approach that ensures relevance and effective communication of expectations and standards for every team member.

Core Policies in the framework include:

• Anti-Bribery & Corruption

• Anti-Fraud

• Anti-Money Laundering & Terrorist Financing

• Competition Law

• Due Diligence

• Environmental

• Gifts & Hospitality

• Risk Management

• Conflicts of Interest

• Data Protection & Information Security

• Environmental Protection

• Health & Safety

• Human Rights

• Sanctions & Export Controls

• Tax & Anti-Facilitation of Tax Evasion

• Whistleblowing

Our new Integrity Code was developed in 2023 and is anchored by our PRIDE values. It is designed to recognise that our business objectives, both on and off the track, can and must only be achieved with the utmost integrity.

The Integrity Code sets out clear principles, guidance and instructions to support decision making and ensure best practice. It helps our team members to navigate complex scenarios while upholding our values and principles and ensures each decision we make, as individuals and collectively, aligns with both legal rigour and the team’s moral compass.

The Integrity Code is at the heart of our culture and makes our expectation clear that all team members, and those with whom we work, act in a manner consistent with the Code.

We are committed to open communication and encourage our team members to ask questions, seek advice or raise concerns.

We offer several channels that can be used to raise questions or report concerns, including via our HR team, Legal & Compliance team or through our SpeakUp! whistleblowing platform which is available 24/7 and can be accessed via a freephone number or an online platform.

The business and its leadership regularly communicate the importance of reporting any legal or regulatory breaches as well as any breaches of our Code and associated policies. Our SpeakUp! whistleblowing platform allows team members and third parties to raise concerns in a confidential manner and, where legally permissible, entirely anonymously.

Risk is inherent to everything we do, from the pit crew changing tyres, to our choice of partners and investment decisions. We identify and manage risk in a manner that is consistent with our values, and which protects our people, our performance, our stakeholders and our shareholder value.

Our ambition is to manage risk in our business to deliver reliability and performance on track, financial performance, to contribute positively to society and to create lasting value in a responsible, transparent and respectful manner.

The MCM defines our risk appetite which is cascaded through the business. Our leaders are accountable for managing risk, confirming appropriate risk controls are implemented and ensuring that risks are owned and, where appropriate, escalated within the team. In addition, team members are accountable for managing the risks associated with their respective roles.

Our relationships can present risks to our business, and we therefore need to understand who we are dealing with and how they operate. We do this by conducting due diligence.

We recognise the importance of due diligence in protecting our team and our stakeholders against risks such as bribery and corruption, money laundering, human rights abuses, tax evasion and sanctions breaches.

Risk-based due diligence is carried out before we enter new relationships and is an ongoing process. No relationship is entirely without risk, and we carefully consider how risks identified in the due diligence process can be appropriately mitigated and addressed. Where our integrity standards are not met or risks are not compatible with our risk tolerance, we will not hesitate to refuse entering a relationship or to seek to exit an existing relationship.

Our Internal Audit and Business Assurance Programme takes a risk-based approach to governance, ethics and compliance to address the challenges presented by our unique business operations.

It ensures that compliance risks are identified, sensitively evaluated and addressed across our business on an ongoing basis so we can adapt, when necessary, to ensure business continuity and limit risk of any disruption to our operations.

We have a dedicated Data Protection Officer (DPO) in our legal team who is equipped with leading technology to ensure that we use, manage and store personal and confidential information in a compliant and responsible manner, having regard to GDPR and other relevant legislation and guidance. Our DPO works closely with our Information Security team which carries out regular testing on the integrity of our systems, including with the support of external experts.