RESOURCES CONSUMPTION AND MANAGEMENT

The Moncler Group, aware of the importance of responsibly managing the consumption of resources, including water, is committed to preserve and reduce the consumption of such resources at its sites and throughout the supply chain.
In recent years the Group has thus launched a series of activities aimed not only at assessing its impacts on water consumption, but also at analysing the water risk of its sites and along the supply chain to identify improvement measures.
As part of this process, in 2023 the Group updated the calculations of its water footprint, including water consumption occurring both at its sites and throughout the supply chain.
This analysis was conducted in collaboration with an external partner and follows the principles set by the standard ISO 14046: Water Footprint – Principles, requirements and guidelines. The water footprint calculation methodology allows to combine direct (at the Group’s sites) and indirect (throughout the supply chain) consumption data with the water risk index (reflecting water scarcity Available Water Remaining – AWARE) associated with each geographical area analysed.
In line with the analysis of the Group’s carbon footprint, also the water footprint showed that the most significant impacts on water resources occur in the extraction and production phases of materials and in some processing stages.
With regard to direct consumption (offices, stores, production sites and logistics hub), the Group periodically conducts assessment and monitoring procedures of consumption, which confirm that the almost exclusive source of water supply for the Group is represented by water mains. All direct water consumption is mainly for sanitation and, to a minimal extent, steam production for

ironing facilities and a small dyeing facility for Stone Island’s prototyping department. Consumption increased compared to the previous year due to the expansion of the Group’s production capacity. Accordingly, water discharges are comparable to those of residential buildings and are therefore drained into the sewage system. Finally, it is also worth nothing that none of the Group’s sites are located in high-water stressed regions.*
Although, as described, the type and quantity of direct water consumption are relatively minor, the Group has implemented targeted water efficiency management programs based on the results of periodic assessment and monitoring procedures of consumption. For example, in recent years, a recycling system has been created in the dyeing facility used for Stone Island’s prototyping. In this system, the water used for cooling the tanks is recovered, brought back to temperature, and reintroduced into the dyeing cycle. Previously, this water was discharged into the sewer. This small intervention has allowed both a reduction in the site’s total water consumption and the recycling of part of the water used in the process. Another example consists of the implementation of water efficiency management programs designed to achieve LEED certification (which includes water efficiency requirements) for all new sites: given that the Group’s primary water usage is sanitary, this certification plays a crucial role in managing and reducing water consumption. In this context, the Sustainability Team has also conducted awareness training for the Procurement Team to emphasize the importance of aligning new site designs with LEED certification requirements, thereby promoting both energy and water consumption efficiency in future projects.

The most significant water consumption is the indirect consumption that occurs along the supply chain in the phases of production of the Group’s natural and animal raw materials, particularly for the cultivation of cotton, which is also the main material by volume purchased. Among synthetic fibres, the greatest water consumption occurs in the transformation and dyeing of yarns and fabrics.
The results of the analysis are used internally to identify and prioritise actions and projects aimed at reducing the impact on water consumption.
For example, in the supply chains for natural and animal fibres such as cotton and wool, the Group has identified regenerative farming projects that allow to increase the capacity of the soil to retain water, improving the resilience of crops and reducing the need for irrigation of the fields.
In addition, thanks to the results of the analysis conducted in 2024 to identify water-stressed areas, the Group found that none of its 43 critical Tier 1 suppliers perform water-intensive finishing processes, such as dyeing and coating, for the Group, and none of them are located in highly or extremely high water-stressed areas.
In addition, in 2022 the Group launched a long-term research project in collaboration with the Umberto Veronesi Foundation focused on identifying the mechanisms used by specific cotton varieties to survive or optimise growth in drought situations. The study aims to understand how to improve the resilience of species selected for agriculture in a less favourable environmental scenario and with limited water resources.
The Group’s goal is to continue to refine the analyses carried out so far, enriching them with increasingly granular data, involving suppliers that operate upstream in the supply chain to collect information on water consumption of their production processes in order to identify potential risks and mitigate impacts.
In addition, with regard to indirect water impacts, the Group is monitoring developments in Science Based Target for Nature (SBTN) guidelines in order to define quantitative targets on the most important areas.

The waste generated by the Moncler Group’s direct activity mainly relates to packaging material, to office waste and textile processing scraps.
Aware of the potentially negative impact that improper waste disposal management could have on environment by leading to air, soil or water pollution, the Group is committed to limiting waste generation and to managing the inevitable waste in the best way possible to limit the impacts on the environment and to continue to refine its processes in order to achieve this objective. At all corporate offices, production sites and logistics hub, where the amount of waste generated is significantly higher than at other sites, the company implements an environmental management system certified according to the ISO 14001 standard. Over the years, the company has conducted assessments at its corporate sites (offices, production sites, logistics hub) to identify the types of waste generated and to determine the best collection and recovery solutions in collaboration with specialized waste management companies.
In 2023 Moncler and Stone Island sent for recycling and/or recovery approximately 89% of waste generated in Italy and at Moncler’s production site in Romania. No waste generated at its corporate offices, production site and logistics hub was sent to landfills. This result was achieved through a series of programmes designed to maximise the material sent to recycling networks, implemented with the support of companies specialising in proper waste disposal. Thanks to this effort, the vast majority of the Group’s waste was diverted from disposal, thus recycled and/or recovered, leading to a lower social and environmental impact. It is estimated that in 2023, these disposal practices avoided more than €150,000 in environmental and social costs**.
In addition, the Group’s offices and stores are equipped with special waste sorting containers and employees are informed of the importance of using proper practices so that waste can be

recycled/recovered or, to a residual extent, disposed of. The sorting applies to: paper and cardboard, wood, plastic and IT equipment.
Total waste generated in 2023 was 1,809.6 tonnes (2022: 1,163.3 tonnes). The increase compared to the previous year is mainly due to the expansion of the Moncler production sites, which led to an increase in activities, an increase in the number of employees (+19% vs 2022) and the opening of new stores.
In the last years, in view of the potential negative impacts of inefficient, unethical waste management, the Group has implemented ad hoc procedures and processes for the management of textile materials, be they inventories, fabric scraps or unsold garments.
In this regard, in 2023 the Group sent 99% of all textile waste material for recycling. This was made possible by continuous dialogue with partners and organisations to study innovative solutions and integrate recycling programmes to minimise the material sent to waste-to-energy and/or landfills.
Also in 2023, no unsold garments were sent to incineration with energy recovery or to landfill, rather, they were recycled to recover fabric, yarn or other materials.
In addition, in 2023 100% of the nylon production scraps from the Group’s direct sites was recycled.
In addition to the introduction of specific procedures to recycle nylon scraps, the Group has been implementing several innovations to its directly managed production processes over the years. For example, the ‘smart factory’ in the Trebaseleghe production site employs innovative

techniques for the industry, integrating manufacturing processes inspired by the lean model and applying World Class Manufacturing (WCM) principles. This structured system encompasses all plant processes, from safety to environmental impact, maintenance, logistics, and quality.
The aim is to continually improve production performance and plant efficiency, ensure product quality, and maximize flexibility in meeting customer demands through the active involvement of plant workers. Specifically, the Group is planning and implementing focused action plans to reduce the amount of waste produced. Action plans at this site include substantial investments in research and installation of more innovative and efficient machinery for certain production stages (e.g., a new embroidery machine and a new laser cutting machine). Additionally, specialized training is being provided to site employees to minimize human errors that result in unnecessary waste and to optimize the use of the new machinery.
Through the implementation of these measures, the Group aims to achieve a 15% reduction in the weight of waste per garment produced at the smart factory by the end of 2024, compared to 2023.
Lastly, since 2022 the Group has been a member of Re.Crea, the consortium founded by industry brands, coordinated by Camera Nazionale della Moda Italiana, to manage textile and fashion products at the end of their lives and to promote the research and development of innovative recycling solutions.Through its participation in these industry associations, the Group is aware of the positive impact it can have on the constructive dialogue with other brands and on the engagement of the industry on this topic, ultimately fostering environmental benefits.