FIGHT AGAINST CLIMATE CHANGE

Adopting energy from renewable sources, improving operational efficiency and using “preferred” materials are among the fundamental levers of the Moncler Group’s strategy to reduce greenhouse gas (GHG) emissions and fight climate change, defined in accordance with the objectives of the United Nations 2030 Agenda for Sustainable Development (Sustainable Development Goals – SDGs).

In particular, the Moncler Group has committed to reduce by 2030 absolute scope 1 and scope 2

CO₂e emissions by 70% (in line with the “1.5°” ambition) and scope 3 CO₂e emissions by 52% (in line with the “WellBelow 2°” ambition) per unit sold from a 2021 base year. In addition, the Moncler Group has committed to achieving net zero emissions (Net Zero)³ throughout the value chain by 2050.
These objectives were formally approved by the Science-Based Targets initiative (SBTi)⁴ and considered consistent with the contribution required by companies to limit the maximum

increase in global temperatures compared to pre-industrial levels.
In addition, the Group is monitoring the development of the GHG Protocol Land Sector and Removals Guidance and the Forest, Land and Agriculture (FLAG) targets set for 2024 to further align with the SBTi guidelines.
For the past three years, the Moncler Group has been committed to transparently reporting and communicating its impact on climate change and progress towards the targets in the CDP Climate Change questionnaire.

Direct and indirect energy consumption at the Moncler Group’s sites is mainly due to production activities in Romania and to the logistics hub in Castel San Giovanni (Piacenza), as well as to facility heating, air conditioning and lighting and the use of IT equipment at the corporate offices and at the Moncler and Stone Island stores.

In 2023, despite an increase in total energy consumption, driven by the expansion of the production site in Romania and the consequent increase in direct production, by a 19% increase in the Group’s employees and by the growth of the direct store network, there was a 36% scope 1 and 2 (market-based) emissions reduction compared to 2022 (-50% vs 2021 considering

Stone Island consolidated from 1 January 2021), due to a greater use of renewable energy, more efficient lighting, air conditioning and heating systems and an increase in low environmental impact vehicles in the company fleet. The reduction in scope 1 and 2 CO₂e emissions normalised on revenues is even clearer: -64% emissions per million euro of revenues vs 2021⁵.

In order to reduce energy consumption and CO₂ emissions, the Moncler Group is implementing various activities at its stores, offices, logistics hub and production sites.
The key initiatives implemented are:
• use of electricity from renewable sources;
• implementation of energy efficiency activities (Building Management System – BMS, more efficient lighting, air-conditioning and heating systems, improvement of the thermal

insulation of buildings and promotion of environmental standards for buildings);
• adoption of low environmental impact vehicles in the Group’s car fleet.
Furthermore, the Group is committed to continuously invest in the integration of innovative systems​ and more efficient ​equipment in new and existing ​sites aimed at reducing consumption​ and supporting the transition and alignment to the technical requirements of the

EU Taxonomy Regulation 852/2020.
Finally, the Moncler Group believes that training and the spreading of good practices is fundamental to achieving its emission footprint reduction targets​.​ Therefore, during 2023 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.

The use of electricity from renewable sources is a strategic tool for the decarbonisation process of the Group’s direct activities.
In line with its commitments, in 2023 the Moncler Group purchased exclusively electricity from renewable sources for its directly managed corporate sites worldwide.
The Group achieved this result through:
• installation of photovoltaic panels: at the

logistics hub in Castel San Giovanni (Piacenza), the photovoltaic system contributed to the generation of over 590 MWh of energy in 2023. Stone Island also has a photovoltaic system at its Ravarino (Modena) headquarters, which in 2023 contributed to the generation of about 115 MWh of energy;
• purchase of electricity from renewable sources: also in 2023 the Group continued to

switch conventional energy supply contracts into renewable energy contracts. Where no renewable energy supply was available from the energy provider, the Group continued to purchase Guarantees of Origin (GOs), Renewable Energy Certificates (RECs) and International Renewable Energy Certificates (I-RECs).

With regards to energy efficiency, also in 2023 Moncler continued the installation of low-consumption lighting systems and the optimisation of heating and air conditioning systems.
At the Moncler corporate sites, in line with the previous years, refurbishment and installation of more efficient lighting systems continued, through the replacement of traditional lighting systems with Light-Emitting Diode (LED) bulbs and thermal insulation systems to ensure greater energy efficiency.
To date, the entire production site in Romania and the logistics hub in Castel San Giovanni (Piacenza) are equipped with LED systems. At the corporate site in Milan, almost all lighting systems are more efficient than conventional systems, while at the corporate site in Trebaseleghe (Padua), approximately 90% of lighting systems are energy efficient. With regard to Stone Island, in 2023, LED lighting was recovered and implemented at its raw materials warehouse. In addition, the Ravarino Hub (Modena) will be equipped with full LED lighting systems in 2024.

In 2023, additional investments were made to install heat pumps at the Moncler office in Trebaseleghe (Padua) in order to implement more efficient systems and reduce the use of energy from fossil sources. At Ravarino Hub (Modena), in 2024, the new heating systems will be implemented and enhanced with additional heat pump systems.
The Moncler Group is committed to continuing the process of improving its energy performance at its most relevant corporate sites in terms of energy consumption. To this regard, in 2023, an energy assessment campaign was conducted at various corporate offices, including the Moncler site in Trebaseleghe, the Stone Island site in Ravarino (Modena) and the Moncler headquarters in Milan in order to identify further energy efficiency opportunities.
To date, more than 99%¹³ of Moncler stores worldwide (100% in the United States, Korea, Japan and Europe) is equipped with LED lighting. The same type of system has been adopted and will be adopted by all new Stone Island stores at global level.

The latest-generation LED, in addition to offering excellent light quality, ensures an estimated energy savings of up to 80% compared to previously-used lighting systems, while also generating less residual heat. In terms of environmental impact, LED lights have an average lifespan that is significantly longer than traditional lights and are almost entirely made from recyclable material.
The investments made in 2023 to install or replace traditional lights with LED lighting systems in corporate sites amounted to about 2.5 million euros¹⁴.
In line with previous years, also in 2023, the Group continued to implement activities aimed at renewing store electrical systems using new technologies that ensure energy-saving.
In this regard, in 2021 Moncler began equipping stores with Building Management System (BMS) for the integrated management of all the technological functions of each space, from access control to lighting and air conditioning, with the aim of implementing more efficient management of energy consumption.

Since 2021 the Group has initiated an environmental and energy certification process for its stores and all new constructions of corporate buildings according to the LEED standard. By adopting this certification, combined with other energy efficiency measures and the installation of LED lights, the Group ensures to reduce electricity consumption and related CO₂ emissions in the long term.
From 2023 onwards, the Moncler Group is

committed to obtaining LEED certification for all new stores¹⁵.
In view of this objective, the Moncler Group currently has:
• five stores certified to the LEED standard for Building Operations and Maintenance and six stores under certification process;
• 15 stores certified according to the LEED Interior Design and Construction standard and 13 stores under certification.

With regard to production sites, in 2023 the Group obtained LEED Building Design and Construction certification for the expansion of the plant built in Romania.
Lastly, in 2021 BREEAM In-Use certification (Excellent level) was obtained for the logistics hub in Castel San Giovanni (Piacenza), proving a more efficient management of the building and an energy and environmental performance improvement.

During the year the Group continued to introduce low environmental impact vehicles into the car fleet.

In 2023 the Moncler Group’s hybrid and electric corporate vehicles represent around 85% of total vehicles.

The Group’s objective is to continue to introduce this type of vehicle, reaching 90% coverage by 2024.

In 2023, in line with the objectives of the Strategic Sustainability Plan, the Group maintained carbon neutrality¹⁶ for all corporate sites worldwide.
In order to maintain carbon neutrality, and in line with what was done in recent years, residual unavoidable emissions (reduced compared with the previous year) were compensated through two projects certified on the voluntary market and focused, respectively, on the circular economy and renewable energy, demonstrating the Group’s commitment to mitigate its impacts beyond its value chain.
The first project supported, certified according to Gold Standard, relates to the expansion of a

plastic waste recycling plant in Romania. This initiative adds to the contribution towards the installation of a photovoltaic system certified according to the Verified Carbon Standard in Mauritius. The two 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, especially in schools, 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).

Due to the nature of the Moncler Group’s business model, most environmental impacts are generated along the value chain (more than 98% of the Group’s total emissions), from the production of raw materials to the production and transport of garments, the commuting of employees and the impacts of the use of products by end clients.
In 2023 the Group’s scope 3 emissions, calculated for all relevant categories, were approximately 240,000 tonnes of CO₂e, down by approximately 8% in absolute terms compared to the previous year.
The CO₂ emissions generated by the production of raw materials, textile processing and the production of finished garments represent the most significant contribution of the Group’s carbon footprint. In 2023, the Group made significant improvements to the completeness and quality of the data collected from its

suppliers by leveraging the information gathered during the supply chain traceability project and the support activities on energy topics carried out for its suppliers.
In 2023 these emissions decreased by about 14% compared to the previous year. This reduction is mainly due to the inclusion in the collections of “preferred” materials such as nylon and polyester made with recycled raw materials and organic cotton (for example, the Group included more than 40% synthetic fibres made with recycled material and more than 10% organic cotton in its SS and FW 23 collections).
The Group expects that over the years these choices, along with the other activities implemented along the supply chain will continue to contribute to reducing CO₂ emissions in line with the commitments made with the SBT initiative.
In 2023, the Group’s logistics emissions were

approximately 27,925 tonnes of CO₂e²⁴. The Moncler brand’s total CO₂ emissions from industrial and distribution logistics²⁵ increased less than proportionally to the increase in the volumes transported. The Group’s efforts focused mainly on optimising the volumes of distribution logistics and promoting less impactful transport methods. In this regard, in 2023 the Moncler brand’s emissions from distribution logistics decreased by 5% compared to 2022.
In 2023 capital goods emissions accounted for approximately 7% of the total. Such emissions mainly relate to the renovation and expansion of offices, production sites and stores, as well as the purchase of machinery by the Group.
Emissions from business travel and commuting increased compared to 2022 due to the higher number of Group employees, particularly at the production site in Romania and the Italian corporate sites.

In line with the commitment set in the Science-Based Targets to reduce scope 3 CO₂e emissions²⁶ per product unit sold by 52% by 2030 from a 2021 base year, the Moncler Group is implementing various initiatives across the following strategic areas:

• the progressive introduction of “preferred” materials into the collections;
• promotion of regenerative agriculture projects;
• the decarbonisation of the supply chain through energy efficiency measures and the

adoption of energy from renewable sources;
• the optimisation and efficiency improvement of the logistics system;
• the development and implementation of initiatives to promote sustainable mobility among employees.

Among the raw materials used, wool and cotton are the main source of CO₂ emissions, followed by synthetic materials, such as nylon and polyester.
In order to achieve its climate targets, in 2023 the Group implemented a series of initiatives to promote the introduction of products made with “preferred” raw materials into its new collections. The Moncler Group has taken steps to review its supply choices, for example by replacing virgin materials with alternatives made with recycled, organic or regenerative raw materials that guarantee a reduction in terms of emissions generated.
The Moncler Group has identified a set of intermediate targets to be achieved by 2025:
• 50% “preferred” nylon;

• 50% “preferred” cotton;
• 70% wool certified Responsible Wool Standard (RWS).

The objectives listed above contribute to achieve the target of more than 50% of yarns and fabrics made with “preferred” materials in all collections by 2025.
The progress made towards these objectives in 2023 is presented in the chapter “Think Circular and Bold”.
In addition, in line with the commitments made, in 2020 Moncler drew up the Guidelines for “preferred” materials, a protocol that summarises the criteria and thresholds for guiding the choice of materials, accessories and production processes for lower-impact products.

The protocol evolved into the Raw Materials Manual, which was drafted in 2023. The Group aims to have 100% of its strategic raw materials in line with the Raw Materials Manual by 2024. The regular discussions between the Sustainability Team and the Operations and Supply chain team serve as valuable on the job training sessions. These discussions ensure alignment between the Group’s commitments in increasing the share of raw materials with a lower environmental impact than conventional solutions used by the Group and the normal purchasing processes of the purchasing department.
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-usability²⁷ and durability as well as on reducing the materials used.
Since 2022, packaging intended for the end client and, starting from 2023, the packaging for logistics have been respectively made with “preferred” materials.

In 2021 the Group began mapping its energy consumption and type of energy used along the supply chain in order to integrate primary data from production processes into the Group’s footprint and identify, together with its suppliers, opportunities for energy efficiency improvements and the transition to energy from renewable sources. This activity, which continued in 2022 with regard to direct suppliers, was extended to indirect suppliers in 2023.
This process, supported by external partners for the data verification phase, allows the Group both to improve the quality of the data used in calculations of environmental impacts and to

monitor the virtuous actions implemented by its suppliers over time.
In addition, the Moncler Group continues to collaborate with its suppliers to encourage the energy transition in its supply chain. In this regard, in 2023 the Group carried out an energy assessment programme involving a total of approximately 15 direct suppliers.
These assessments, financed by the Group and carried out by specialist external consultants, focus in particular on potential initiatives with short term return on investment and no impact on the quality and timing of production, such as the possibility of installing photovoltaic systems at

production sites or the purchase of renewable energy. The measures identified for each production site, aimed at supporting the supplier in defining a strategy to reduce energy consumption and CO₂ emissions, were discussed in detail with the supplier in ad hoc sessions to better understand their technical and economic feasibility.
Looking forward, the Group will continue to collaborate with suppliers with more energy intensive processes (e.g. dyeing or finishing) to encourage them to implement energy efficiency programmes.

According to the United Nations Intergovernmental Panel on Climate Change (IPCC), net zero emissions (Net Zero) are achieved when “anthropogenic CO2 emissions are balanced globally by anthropogenic CO₂ removals over a specified period”. According to the Science Based Targets initiative, the achievement of net zero involves scope 1, 2 and 3 GHG emissions.
Achieving the Net Zero emissions target by 2050

is in line with the efforts required by companies in the Paris Agreement to limit the increase in global average temperature to 1.5°C.
This goal requires companies to commit to review processes and ways of doing business. Likewise, companies cannot achieve this result on their own, because this ambition requires a collective effort from all industries and governments.
Companies that commit to achieve Net Zero are

required to both decarbonise their footprint as much as possible and neutralise all residual emissions of the entire value chain.
To this regard, the Group’s ambition is articulated over two complementary phases. By 2050:
• Reduce scope 1, 2 and 3 GHG emissions by 90% in line with the Paris Agreement.
• Neutralise all residual emissions with carbon removals.

GREENTECH: PLASTIC RECYCLING WITH A HIGH EFFICIENCY SYSTEM
The project supported by the Moncler Group and promoted by GreenTech, one of the leading companies in the PET plastic recycling industry in Europe, concerns a plastic recycling plant for bottles and other PET products through energy-efficient technology that allows the reduction of emissions compared to traditional disposal methods. In particular, plastic recycling allows for a 45% reduction in CO₂ emissions compared with virgin PET plastic production. The company is located in Romania, an important country for Moncler due to both the presence of the production site in Bacau and its own production chain.

The project, certified by according to the Gold Standard, ensures not only environmental benefits, such as the protection of local biodiversity, but also social benefits, such as the promotion of gender equality, and economic benefits, in addition to helping accelerate the country’s transition towards a sustainable, low carbon economy.

HENRIETTA SOLAR: INSTALLATION OF A PHOTOVOLTAIC SYSTEM
Henrietta Solar is a project certified according to the Verified Carbon Standard that involves the installation of a photovoltaic energy system in Mauritius, which is severely exposed to climate change and classified as Small Island

Developing States (SIDSs).
Through the construction of 53,700 solar panels, the project will provide sustainable energy to 40,000 people, while preserving an agricultural area of over 20 hectares. The solar panels will generate around 26,500 MWh, replacing the current energy mix with clean, renewable energy, reducing its greenhouse gas emissions by more than 25,000 tonnes of CO₂ a year. The project is providing concrete support to the country by not only reducing its dependence on imports of energy from fossil sources, mainly coal and oil, and contributing to its energy self-sufficiency and to climate change mitigation, but also creating new work opportunities for the local community.