FIGHT AGAINST CLIMATE CHANGE

Reducing greenhouse gas (GHG) emissions by adopting renewable energy and improving operational efficiency is a fundamental lever of the Moncler Group’s strategy to fight climate change, defined in accordance with the objectives of the United Nations 2030 Agenda for Sustainable Development (Sustainable Development Goals – SDGs).
In 2020 Moncler set its CO₂ emission reduction targets in line with the Science Based Targets Initiative (SBTi)¹.

Following the integration of Stone Island and

internalisation of Moncler’s e-commerce channel, in 2022 the Group redefined its CO₂ reduction targets to ensure the inclusion of all sources of CO₂ emissions and to reflect the actual size and impact of the business.
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 “Well-Below 2°” ambition) per unit sold from a 2021 base year. In addition, the Moncler Group has committed to achieving net

zero² emissions throughout the value chain by 2050. These objectives were approved by the Science-Based Targets initiative and considered consistent with the contribution required by companies to limit the maximum increase in global temperatures compared to pre-industrial levels.
For the past two 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 2022, despite an increase in total indirect energy consumption, driven by the growth in business activity that exceeded 2021 in terms of number of stores, it was registered a 21% reduction in scope 1 and 2 emissions (market-based) compared to 2021 (-17% compared to 2021 considering Stone Island consolidated from 2021, April 1^st),

due to 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: -35% emissions per million euros of revenues vs 2021³.

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. These initiatives

range from the gradual replacement of traditional lighting systems with LED lights, the use of Building Management System for integrated and more efficient

management of energy consumption, the use of electricity from renewable sources, the use of environmentally friendly IT tools and the increase in low environmental impact vehicles in the car fleet.

The use of electricity from renewable sources is a strategic tool for the decarbonisation process of the Group’s direct activities.
In line with the commitment to use 100% renewable energy in the Group’s sites at global level by 2023, in 2022 the Moncler Group used electricity from renewable sources for a total of approximately 90% of the total corporate sites consumption (approximately +10 percentage points compared to 2021). Overall, the Group uses only energy from renewable sources in

Italy, Romania and other countries including China⁹, the United States, Canada and France.
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 around 162 MWh of energy in 2022. Stone Island also has a photovoltaic system at its headquarters in Ravarino (Modena), which in 2022 contributed to the generation of about 115 MWh of

energy, of which 690 kWh was released back to the grid
• Purchase of electricity from renewable sources: also in 2022 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 2022 Moncler continued the installation of low-consumption lighting systems and the optimisation of heating and of 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 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 light-emitting diode (LED) systems. At the Milan corporate site, almost all lighting systems are more efficient than conventional systems, while at the corporate site in Trebaseleghe (Padua), approximately 80% of lighting systems are lower consumption ones.

In order to implement more efficient systems, in 2022 the gas steam boiler at the Moncler headquarters in Trebaseleghe (Padua) was

replaced with an electrical steam generator. This type of system increases boiler efficiency by 20%, resulting in energy savings and in reduced CO₂ emissions.
At the Stone Island site in Ravarino (Modena), since 2018 activities have been implemented at offices to replace the air conditioning and gas heating systems with more efficient heat pumps with inverters as well as window fixtures to ensure high thermal insulation. During the year, some areas of Stone Island’s office in Ravarino (Modena) were equipped with motion sensors to facilitate energy control and monitoring, reduce waste, and optimise energy efficiency.
To date, more than 99%¹⁰ of Moncler stores worldwide (100% in the United States, Korea, Japan and Europe) have 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 LEDs, in addition to offering excellent light quality, ensure 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 2022 to install or replace traditional lights with LED lighting systems in offices and stores amounted to over 3.5 million euros¹¹.
In line with previous years, also in 2022 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 Systems (BMSs) 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.

In 2021 the Group initiated an environmental and energy certification process for its stores and all new 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 on, the Moncler Group is committed to obtaining LEED certification for all new

stores¹², relocations and expansions.
The Moncler Group currently has:
• five stores certified according to the LEED for Building Operations and Maintenance standard
• seven stores certified according the LEED Interior Design and Construction standard
• five stores waiting for the LEED Interior Design and Construction certification
• nine stores for which the LEED Interior Design and Construction certification has begun.

With regard to corporate sites, in 2022 the Group began the process aimed at obtaining the LEED certification for the extension of the plant 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 2022 the Moncler Group’s

hybrid and electric corporate vehicles exceed 63% (70% for the Moncler brand) of total vehicles. The Group’s objective is to continue

to introduce this type of car, reaching 90% coverage by 2024 (target anticipated of one year).

In 2022, in line with the commitment of the Science-Based Targets and the objectives of the Strategic Sustainability Plan, the Group maintained carbon neutrality¹³ for all corporate sites worldwide.
In order to maintain carbon neutrality, and in line with what was done in 2021, unavoidable residual 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. The first project supported, certified according to Gold Standard, relates to the expansion of a plastic waste recycling plant in Romania. This initiative is in addition to the contribution to instal 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.

Due to the nature of the Moncler Group’s business model, most environmental impacts are generated along the value chain (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 2022 the Group’s scope 3 emissions were approximately 260,000 tonnes of CO₂e, which was higher compared to the previous year as a result of increased production and sales.

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 2022 these emissions increased by 22% compared to the

previous year, mainly due to the higher volumes of raw materials purchased as a result of the production increase linked to market demand. Nevertheless, reductions in emissions intensity were observed per kilogram of specific materials thanks to the inclusion in the collections of lower impact fabrics or yarns such as nylon and polyester made from recycled materials. The Group expects these choices, together with the other activities implemented along the supply chain, to also lead, over the years, to a reduction of CO₂ emissions in line with the commitments made to the SBT initiative.
In 2022 the logistics emissions reporting scope was further extended to include additional flows, such as the returns from the e-commerce channel in the EMEA and Americas Regions and

shipments of packaging from suppliers to local warehouses.
The Group’s logistics emissions amounted to approximately 27,400 tonnes of CO₂e¹⁸ in 2022.
In 2022 capital goods-related emissions accounted for 6% of the total. Such emissions mainly relate to the renovation and expansion of corporate and production sites and stores, as well as the purchase of machinery by the Group. In particular, the 8% increase in these emissions compared with 2021 is due to the expansion of the retail network of both Moncler and

Stone Island and the beginning of the expansion works at the plant in Romania.

In line with the commitment set in the Science-Based Targets to reduce scope 3¹⁹ CO₂e emissions 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 lower impact materials in the collections
• 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, cotton, the most important material for the Moncler Group in terms of purchased volumes, is the main source of CO₂ emissions, followed by animal fibres and synthetic materials, such as nylon and polyester.
In order to achieve its climate targets more rapidly, also in 2022 the Group implemented a series of initiatives to promote the introduction of products made from lower-impact 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 of recycled, organic or regenerative origin that guarantee a reduction in terms of emissions generated.

In 2022 the Moncler Group identified a set of

intermediate targets to be achieved by 2025. In particular, the Moncler Group’s commitments on materials aim to use:
• 50% recycled nylon
• 50% lower-impact 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 from lower impact materials in all collections.
In addition, in line with the commitments made, in 2020 Moncler drew up the Guidelines for sustainable materials, a protocol that summarises the criteria and thresholds for guiding the choice of materials, accessories and production processes

for low-impact products. The protocol will see an evolution with the Raw Materials Manual in 2023. The Group aims to have 100% of its strategic raw materials in line with the Raw Materials Manual by 2024.
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-usability and durability as well as on reducing the materials used.
Packaging for the end clients is already made from lower impact materials.

In 2021 the Group mapped the energy consumption and the type of energy used along the supply chain to identify, together with its suppliers, opportunities for energy efficiency improvements and the transition to energy from renewable sources. This activity continued also in 2022 and will continue in 2023 with an energy

assessment programme involving a total of approximately 15 selected suppliers.
This assessment, financed by the Group and carried out by specialist external consultants, focuses in particular on initiatives with short return times and no impact on the quality and timing of

production, such as the feasibility of installing photovoltaic systems at suppliers’ sites or the purchase of renewable energy. These actions identified will support the supplier in formulating a strategy for reducing consumptions and CO₂ emissions.

According to the United Nations Intergovernmental Panel on Climate Change (IPCC), net zero emissions 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.
The Group’s ambition is therefore articulated over two complementary phases. By 2050:
1 – Reduce scope 1, 2 and 3 GHG emissions by 90% in line with the Paris Agreement
2 – 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 fossil energy, 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.