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RESOURCE MANAGEMENT AND CONSUMPTION

Moncler pays particular attention to environmental aspects in the conduct of its business, and is committed to preserving natural resources and combating climate change by taking steps to minimise its environmental impact.

With regard to direct environmental impacts, i.e., those caused by offices, stores, logistics centres, and the production site in Romania (scope 1 and scope 2), the Group concentrates its efforts mainly on:
monitoring and assessing environmental impacts, on the basis of which the Company can identify and implement improvement measures that enable their mitigation, on the one hand, and contribute to achieving ISO 14001 certification, on the other, starting with the production site in Romania
• purchasing electricity from renewable sources
• adopting efficient technologies and lighting systems and green ICT solutions

• adopting technologies that enable interaction amongst employees, thus reducing business travel
• using resources efficiently and buying from responsibly managed sources
engaging employees and raising awareness across the Company through guidelines and programmes aimed at reducing the consumption of paper, toners, and energy, and at promoting waste sorting.
Given the nature of Moncler’s business model, in which production is mainly outsourced to external suppliers, its most significant environmental impacts are indirect. The Company uses its influence insofar as possible to promote sound environmental practices among its production and logistics sup- pliers, in an effort to limit the indirect impact generated by the production and distribution of its products.

ENERGY CONSUMPTION AND CO2 EMISSIONS

In addition to heating, air conditioning, lighting, and computer equipment, Moncler’s energy consumption is mainly related to the production activities at its site in Romania, where a gap analysis was performed in 2016 in order to implement the ISO 14001 Environmental Management System.
In 2016, Moncler signed a supply contract for the purchase of renewable energy in Italy, where it is committed to use 100% of energy from renewable sources by the end of 2017.
During the year, the Group also assessed the environmental impact of its employees’ business travel. Based on a number of employees accounting for 50% of the total workforce, travel by air, train, and car in 2016 generated approximately 1,600 tonnes of CO2 emissions.

INITIATIVES TO MITIGATE ENERGY CONSUMPTION AND CO2 EMISSIONS

The Group is currently implementing several initiatives across its shops and offices, and at the production site in Romania, to reduce energy consumption and CO2 emissions. They range from gradually replacing traditional lighting systems with LED lights, to using green ICT technologies, to identifying new methods to use energy more efficiently, to mitigating the environmental impact of employees’ business travel.
With regard to improving the efficiency of lighting systems, thanks to the investments made in 2016, 73%5 of stores worldwide (100% in the United States and over 90% in Europe) are equipped with Light-Emitting Diode lights.

Latest-generation LED technology delivers high-quality lighting and about 50-70% in energy savings compared to the former lighting systems, with less residual heat. In terms of environmental impact, LED lights have an average life of five years, versus the six months of traditional light bulbs, and are made almost entirely of recyclable materials. In 2016, Moncler invested over 800,000 euros in EMEA to replace traditional lighting systems with LED lights. The goal is to replace all discharge and incandescent lamps worldwide by 2017.
To further minimise environmental impacts, stores were also equipped with modern, energy-efficient heating and cooling systems. In 2016, in order to develop a better understanding of the initiatives that could feasibly reduce the environmental impact of stores, sustainability requirements started to be integrated in the store design process.
Indeed, in addition to style, aesthetics, sophistication, and practicality, Moncler is paying more and more attention to sustainability aspects in the design and realization of its stores.

While it is fundamental that stores feature good lighting, layout, climate control, and functionality, the Group is aware that these aspects need to be managed as soundly as possible to limit their impact on the environment. Moncler relies on the market’s best specialists to design its stores, choosing to work with companies offering innovative solutions that also take account of environmental protection.

Moncler’s commitment to protecting the environment can also be seen in other spheres: on the one hand, in the actions taken to minimise the environmental impact of its Information and Communication Technology (ICT) systems, identifying increasingly efficient and innovative solutions that are then incorporated into global guidelines for the purchase of green ICT equipment; on the other, in the way the Company exploits the potential of new technologies enabling remote exchanges and interactions, which help reduce the impact of business travel on both the environment and the quality of life of employees.
Indeed, Moncler promotes remote working arrangements based on the guiding principle of ‘taking work to the worker’, and not vice versa. It does so through a range of hardware and software: from basic tools – such as emails, instant messaging, and conference calls – to sophisticated ones – such as special apps for tablets and smartphones, and innovative video conferencing and telepresence systems. Video conferencing and telepresence platforms offer unprecedented audio-visual quality, and boast features that can replicate the dynamics of a face-to-face meeting.

To date, Moncler has 14 conference rooms equipped with modern video conferencing or telepresence technology, 3 more compared to 2015 (thanks to the set-up of new facilities at the offices in Korea, Romania, and Tokyo). In theory, in 2016, these systems prevented over 17 million kilometres of business travelling, estimated to be equal to approximately 2,500 tonnes of CO2 emissions6. In 2015, a pilot project was launched enabling video conferencing directly from tablets using a dedicated app; in 2016 the app was made available (on request) to all employees.
Moncler is also careful when it comes to the selection of eco-efficient ICT components and equipment. The Group mainly uses multi-functional devices that print, copy, and scan all-in-one, which reduces energy consumption and simplifies maintenance. Existing devices are progressively being replaced with lower energy consumption units.
Since 2013, the Group has been replacing all hardware components and monitors in Italy with new Energy Star-certified devices. Energy Star is a voluntary energy efficiency programme, one of the most well-known worldwide. Developed jointly by the United States’ Environmental Protection Agency and Department of Energy, Energy Star was devised to reduce costs and help protect the environment through the adoption of energy-efficient products and practices. Products carrying the Energy Star label guarantee excellent energy performance.
In recent years, the Group has also continued to reduce, replace, consolidate, and virtualise its servers, which has led to considerable benefits in terms of energy consumption and related CO2 emissions. In particular, the extension of virtualisation technologies led to smaller, low-consumption servers, designed to both minimise the amount of energy required to cool the machines, and optimise the use of space and overall performance.

In June 2014, IBM PureFlex Blade servers were installed at the corporate headquarters in Trebaseleghe (Padua, Italy), leading to a reduction of over 50% in annual kWh consumption, and saving approximately 26.3 tonnes in annual CO2 emissions compared to the technology replaced, while delivering equal capacity. These servers were further replaced in 2016, with new high-performance Lenovo x3650M5 and IBM Power8 servers that boosted Moncler’s technological capacity and ability to meet the new and increasing demands of information technology, while consuming the same energy. The new server technology is paired with sophisticated software for data storage virtualisation, which ensures excellent computational capacity and the highest level of machine consolidation, which translates into less energy waste. In 2016, one of the two server rooms at the corporate offices in Trebaseleghe was transferred to an external data centre, which enhanced security levels and service continuity while reducing overall energy requirements (for air-conditioning). The remaining server room was extended, although it continues to house the energy-efficient rack cabinets with integrated cooling systems installed the year before.
As at 2016, Moncler had 255 virtual servers (10 more compared to 2015, all created at the corporate offices in Trebaseleghe). The servers at the data centre in Tokyo, which were already hosting a number of virtual servers, were upgraded so as to host additional ones required to manage the new Korea Region. Lastly, the hosts in the server rooms at the logistics hubs in Piacenza and Milan (Italy), hosting the current virtual servers, were upgraded (in terms of RAM) to enable the creation of new ones. The server room at the site in Bacau (Romania) is expected to be upgraded in 2017, with the installation of an IBM PureFlex Blade server that will enable the virtualisation of all current physical servers.

NOTES

1 Figures include direct consumption in Italy and Romania only, which account for about 82% of the total cost of natural gas.

2 As of 2016, the monitoring of consumption and emissions includes the car eets in Italy and Romania. The 2015 and 2014 data were not available (n/a).

3 The increase in indirect consumption compared to 2015 is due to the signi cant expansion of the scope of monitoring, which includes almost every of ce and store in the Moncler Group.

4 The coef cients used to calculate emissions were published by: DEFRA (Department for Environment, Food & Rural Affairs) in 2015, and the Department for Business, Energy & Industrial Strategy (BEIS ) in 2016.

5 Excluding the 11 shop-in-shops in which lighting is provided by the host department store, where Moncler cannot take action.

6 The reduction in emissions achieved by using video/ telepresence conferencing technologies was estimated by:
— taking into consideration only video/tele conference calls lasting more than 20 minutes
— assuming an average number of four participants in each video/tele conference call
— estimating the flights avoided per each international video/tele conference call. CO2 estimates were calculated on the basis of the distance in kilometres between the cities linked via video/tele conferencing, assuming two people flying in economy class
— estimating the road trips (by diesel-powered car) avoided per each national video/tele conference call. CO2 estimates were calculated on the basis of the distance in kilometres between the cities linked via video/tele conferencing
— considering only one calling point and one receiving point for calls involving more than two countries (e.g., Italy, Japan, and the United States)
— calculating the emissions saved based on the coef cients provided by the Department for Business, Energy & Industrial Strategy (BEIS).