Fight against climate change

The Moncler Group believes that training and the spreading of good practices is fundamental to achieving its emission footprint reduction targets.

In 2024, the Moncler Group created a dedicated course for all employees, with the aim of raising awareness and increasing knowledge of environmental matters. The course can be accessed through various devices and is available on the Group’s digital platforms. Organised into four modules, the course

explores several topics, including: climate change, biodiversity, water resource management, resource efficiency and circularity.

The climate change module guides employees through the challenges and opportunities of one of the most pressing issues of our time. It presents a clear overview of the fundamental concepts, ranging from the definition and classification of greenhouse gases to the global and local impacts of climate change.

The module also explores the topic of the carbon footprint as a tool to measure the emissions of an organisation and describes the main mitigation strategies adopted by the Moncler Group to reduce its impact.

Moreover, the procurement team (also responsible for managing the renovation of existing sites and the construction of new ones) was engaged in specific training courses on building energy assessments and efficiency initiatives.

In 2024, the Group maintained carbon neutrality²¹ for all directly managed sites worldwide.

To maintain climate neutrality, and in line with what was done over the past years, scope 1 and 2 (market-based) emissions were reduced (-6% compared with the previous year), while unavoidable residual emissions were compensated through three projects certified on the voluntary market and focused, respectively, on the circular economy and renewable energy.

The first project supported, certified according to Gold Standard, relates to the expansion of a highly energy efficient plastic waste recycling plant in Romania. This initiative adds to the contribution towards the implementation of two projects that aim to increase access to energy from renewable sources: a photovoltaic plant, certified according to the Verified Carbon Standard, in the Mauritius islands, and an off-shore wind plant, certified according to the Gold Standard, in Vietnam. The three projects are important not only from an environmental point of view but also from a social perspective as they have created new job opportunities and raised awareness among local communities on environmental topics and the importance of recycling and of sustainable management of local resources.
To monitor the reduction and compensation of greenhouse gas emissions at its sites, the Group on an annual basis:

• monitors the implementation of the Group guidelines for the procurement of renewable energy;

• collaborates with the relevant corporate departments to continuously identify areas for improvement in energy efficiency;
• monitors energy consumption and related CO₂ emissions using dedicated company tools and with the support of a consulting firm;
• collaborates with recognised partners to purchase renewable energy certificates (EACs) and CO₂ credits aligned to major international standards such as the Gold Standard or Verified Carbon Standard (VCS)

With reference to GHG emissions generated along the value chain, in 2024 the Group’s scope 3 emissions, calculated for all significant categories, amounted to approximately 227,986 tonnes of CO₂e, registering a decrease of approximately 5%²² in absolute terms compared with the previous year.

The GHG emissions generated by the production of raw materials, textile processing and production of finished garments represent about 72% of the Group’s scope 3 emissions. In 2024, Moncler continued the process of improving the completeness of the quality of the data included in emissions calculations thanks to the information collected through the traceability process and the in-depth collection of data on suppliers’ energy consumption. The inclusion in the collections of “preferred” materials, such as nylon and polyester made from recycled raw materials and organic cotton, avoided about 10,000²³ tonnes of CO₂e (for more details on the Group’s progress made on “preferred” materials). The Group expects that over the years these choices, along with the other activities taken on the chain will continue to contribute over the years to the reduction of GHG emissions in line with the commitments made under the SBTi.

In 2024, the emissions related to the Group’s industrial and distribution logistics²⁴ amounted to approximately 23,329 tonnes of CO₂e²⁵, registering a reduction of more than 15% compared with the previous year, mainly thanks to the efforts made to optimise distribution logistics volumes and promote lower-impact means of transportation.

Emissions related to business travels and commuting recorded an increase compared with 2023 due to the growth in the number of Group employees.

Below are the scope 3 emissions for 2024 and 2023, broken down by the categories considered significant for the Group.

Due to the nature of its business model, in which production is mainly managed through suppliers, the Moncler Group’s most significant environmental impacts are indirect (scope 3), accounting for more than 98% of the Group’s total emissions. To reduce the indirect impact associated with the production and distribution of their products, and within the limits of their sphere of influence, Moncler and Stone Island encourage production and logistics partners to apply environmental best practices.

“PREFERRED” MATERIALS
Among the raw materials used, including materials for finished products and packaging, wool and cotton are the main source of GHG emissions, followed by synthetic materials, such as nylon and polyester.

To reduce this impact, the Moncler Group has begun to replace virgin materials with alternatives from recycled, organic or regenerative agricultural origin that guarantee a reduction in terms of emissions generated and therefore represent a key lever of the Group’s climate strategy. This approach not only supports the Group’s commitment against climate change but also contributes to the mitigation of other environmental impacts.
In particular, Moncler Group has identified a set of intermediate targets to be achieved by 2025:
• 50% “preferred” nylon;
• 50% “preferred” cotton;
• 70% of wool certified to specific standards (e.g., Responsible Wool Standard – RWS, Nativa, Sustainawool).

The targets listed above contribute to reaching over 50% of yarns and fabrics from “preferred” materials in all collections by 2025.

In 2024, in particular, the Group used about 37% recycled or organic cotton, more than 50% “preferred” nylon (e.g., recycled) and about 70% certified wool, such as Responsible Wool Standard (RWS), Nativa and Sustainawool. Thanks to the purchase of these materials, with the exception of wool, for which an emission factor to account for the benefit of switching to a lower-impact solution has not yet been defined, the Group avoided emitting over 10,000 tonnes of CO₂e in 2024 compared with the purchase of the equivalent conventional raw materials.

In addition, in 2024 the Group published the Raw Material Manual, which outlines the criteria and thresholds to guide the choice of materials and accessories with the lower environmental impact and in line with best practices on animal welfare. All key raw materials are in line with what is defined in the Manual.

The Moncler Group is also committed to reduce the consumption of packaging materials and to research and apply lower impact alternatives. In recent years, the Group has launched a series of programmes for improving packaging design, focused mainly on recyclability, re-usability³⁶ and ability to last over time, as well as on reducing the materials used.
Since 2022, the packaging intended for the end client has been made with “preferred” and the same applies to the logistics packaging starting from 2023.

REGENERATIVE AGRICULTURE
Since 2023, the Moncler Group has supported projects dedicated to regenerative agriculture practices along the cotton and wool supply chains, with mitigation effects on both GHG emissions and impacts on biodiversity, and the implementation of new impact measurement methodologies in line with the latest reference standards. In particular, among the projects launched on the cotton supply chain, the Group has joined a project of regenerative agriculture developed in Tennessee in collaboration with Ecosystem Services Market Consortium (ESMC³⁷) on around 200 hectares that has enabled the removal of approximately 100 tonnes of CO₂e from the atmosphere. The impacts of the project were verified and certified by SustainCERT³⁸ during 2024.

Regarding the wool supply chain, a project was launched in Australia in 2023 together with PUR Projet^39, which was extended in 2024 to include two additional farms.
The Group continues to monitor the development of the GHG Protocol Land Sector and Removals Guidance and the SBTi FLAG (Forest, Land and Agriculture) in order to include the assessment of the positive impacts of these projects in its reporting. In this regard, in 2024, the Group calculated its FLAG emissions, which represent more than 20% of the total scope 3.

DECARBONISATION OF THE SUPPLY CHAIN
The Group actively collaborates with its suppliers to monitor energy consumption and define targets and plans aimed at reducing their carbon footprint.
In recent years, it began mapping energy consumption and the type of energy used along the supply chain in order to integrate primary data from production processes into the Group’s carbon footprint and identify, together with its suppliers, opportunities for energy efficiency

improvements and for the transition to energy from renewable sources.
This activity continued in 2024, with the collection and integration of primary data relating to energy consumption and the type of energy used at over 115 production sites of direct suppliers and their sub-suppliers. To date, around 30% of the electricity consumed at these sites comes from renewable sources. In particular, 44 of these production sites have photovoltaic systems.
This process, supported by external partners for the data verification phase, allows the Group to improve the quality of the data used in calculations of environmental impacts and to monitor over time the virtuous actions implemented by its suppliers.
In 2024, thanks to the consultancy support financed by the Group, some suppliers implemented energy efficiency measures identified during the energy assessments, while others started the transition to the use of electricity from renewable sources.
During the year, collaboration was also intensified with a selected group of suppliers, through an awareness campaign that promotes the adoption of best industry practices, the definition of emission reduction targets and the increased use of renewable energy. Given this commitment, the Group has become a partner of the Apparel Impact Institute (AII).
Looking forward, the Group will continue to work with suppliers with more energy intensive processes (for example dyeing or finishing) to encourage them to implement energy efficiency programmes.
To further strengthen this approach, in 2024 the Moncler Group set up a Committee dedicated to overseeing the supply chain decarbonisation programme. Composed of key figures from top management, Purchasing & Procurement team managers, the Sustainable Supply Chain team and the Sustainability Unit, the Committee combines strategic and operational expertise, ensuring an integrated and multidisciplinary approach. Among others, its main responsibilities include guiding the supplier engagement strategy for emissions reduction, overseeing the activities implemented and monitoring progress, in order to ensure the achievement of the Group’s decarbonisation targets. This body represents a fundamental pillar in promoting an effective energy transition throughout the supply chain, favouring collaboration between corporate functions and suppliers.

The Group has put in place a series of measures to mitigate the effects of the theoretical risk deriving from the intensification of extreme and chronic weather phenomena (for example heavy rainfall, heat or cold waves, drought phenomena, etc.), which could affect the physical sites, resulting in the potential interruption or reduction of production levels (operational continuity). In particular, it adopts insurance coverage aimed at limiting the economic impact deriving from any potential damage due to extreme weather phenomena and regularly assesses physical risks related to climate (for example, the exposure of the area to hydrogeological and geomorphological risks). Based on the results of the risk assessments, the Group adapts the design of its site in order to minimise its exposure to the identified risks. In addition, the Group has defined action plans to deal quickly and effectively with any potential emergency situations relating to its logistics services in order to guarantee business continuity.

Compared with the risk associated with changes in the purchasing dynamics of clients with potential preferences for lower impact products or lighter garments, the Group has begun to introduce products with “preferred” materials into its collections for years, from the bio-based down jacket in 2019, to the range of garments created with recycled fabrics in the 2021 Moncler Grenoble collection and to the launch, in the Moncler collections, of a selection of “Born To Protect” jackets, a project that became a total look in 2022, including sustainable garments and accessories. Currently, thanks to the collaboration of the Design, Fabric and Research and Development, and Operations and Merchandising teams, the Group is progressively integrating into the collections fabrics and yarns with a lower impact than conventional solutions (over 43% in the 2024 collections). In addition, Moncler has expanded the range of products over the years, including, along with other new categories (including t-shirts, sweatshirts, knitwear, shoes and other accessories) lightweight down jackets, which can be worn at milder temperatures, or multilayer solutions that offer more opportunities for use.