Resources consumption and management

Water

Aware that water is a critical resource to be protected, since 2022 the Group has been periodically assessing its impact on water resources through a “water footprint” analysis.

 

This process, which constitutes the starting point for assessments of the double materiality analysis, allows the monitoring and quantification of both direct water consumption related to offices, stores, production sites and the logistics hub, and indirect consumption along the supply chain during raw materials extraction and production phases as well as in the processing and assembly stages for finished garments.
The activity is carried out in collaboration with a- specialised external partner and follows the principles defined by the ISO 14046 standard: Water Footprint – Principles, requirements and guidelines. The water footprint calculation method combines direct and indirect consumption data with the Available Water Remaining (AWARE) water risk index, which reflects water scarcity associated with each analyzed geographical area.

To date, the results of these analyses have shown that the most significant consumption, and therefore the potential negative impacts on aquifers due to excessive water withdrawal and the consequent effect on the ecological balance of water bodies, primarily occur along the supply chain, particularly during the production phases of natural and animal-derived raw materials, such as cotton and wool (the assessment did not take into account the mitigation actions implemented by the Group). In particular, preliminary evaluations of the Group’s cotton sourcing regions indicate that approximately over 50% may originate from areas subject to potential water stress.
Due to the nature of the Group’s business, direct water consumption, in contrast, is less significant and mainly relates to sanitary services and, to a minimal extent, steam production for ironing facilities and a small dyeing facility in Stone Island’s prototyping department.

In 2024, the Group integrated the water footprint results with a more specific assessment of water stress and risk in the areas in Italy and Romania where its offices, production sites and logistics hub are located, as well as along the supply chain of “critical suppliers” involved in processes characterised by significant water consumption, such as dyeing, painting and finishing. The analysis was conducted using the public available Aqueduct Water Risk Atlas tool from the World Resources Institute, which identifies areas of high water stress, i.e. those where the ratio annual water withdrawal to available water exceeds 40%.
This additional analysis showed that, to date, neither the Group’s sites nor those of its “critical suppliers” are located in high water stress areas. With a view to continuous improvement, the Group is committed further expand this in-depth analysis, including other areas of the supply chain. 

 

Over the last few years, the Group has launched a series of activities aimed at identifying improvement actions and contributing to the commitments defined in the Environmental Policy.

 

Regarding direct consumption, the Group adopts an Environmental Management System according to the ISO 14001 standard at the production sites in Italy and Romania, the Italian corporate sites and at the logistics hub in Castel San Giovanni (Piacenza), whose objectives include the efficient use of water resources.
In addition, in 2021 the Group has initiated the process of obtaining environmental and energy certification for its stores and all new corporate buildings according to the LEED standard, which requires efficiency measures, including those related to water consumption.
With regard to direct consumption (relating to offices, stores, production sites and the logistics hub), the Group periodically conducts assessment and monitoring procedures of consumption, which indicate that the Group’s main source of water supply is municipal aqueducts. In fact, water consumption is primarily associated with sanitary facilities and, to a lesser extent, with steam production for ironing departments or the small dyeing facility in Stone Island’s prototyping department. Consequently, wastewater is comparable to those of residential buildings and are therefore discharged into the sewage system. 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.

DIRECT WATER CONSUMPTION¹ (m³)20232024

Water withdrawals

71,070
72,920

Water consumption

992
1,057

Water discharges²

70,078
71,863

The most significant water consumption occurs during the production phase of raw materials of natural and animal origin purchased by the Group. Regarding synthetic fibres, the highest water consumption is recorded during the processing and dyeing stages of yarns and fabrics.
In 2024, indirect water consumption along the supply chain, related to the production and processing of raw materials, amounted to 5,428,118 m³, marking a decrease compared to 2023 (-10.6%). This reduction is due both to the lower amount of cotton used by the Group, and to the increased use of “preferred” materials which have a lower impact on the water resources.

INDIRECT WATER CONSUMPTION³ (m³)20232024

Indirect water consumption for the production of finished products

6,074,618
5,428,118

   of which for raw materials⁴

5,254,671
4,347,017

of which for processing⁵

819,947
1,081,101

In 2024, the Group continued its regenerative agriculture projects in the supply chains of natural and animal fibers such as cotton and wool. These initiatives not only help restore the ecological functions of the areas involved but also increase the soil’s capacity to store water thereby improving its resilience to drought conditions.

 

Throughout the year, the Group also continued its multi-year research project launched in 2022 in collaboration with the Umberto Veronesi Foundation, focusing on identifying the mechanisms employed by specific cotton varieties to survive or optimise growth in drought conditions. The study aims to understand how to improve the resilience of species selected for agriculture in a less favourable environmental scenario with limited water resources. In particular, in 2024, the study included the implementation of an experimental field in Milan where selected cotton varieties were analysed to represent the widest possible geographical distribution of a cultivation region. For each variety, the morphological, physiological and molecular traits were measured. These data, along with the environmental variables (such as radiation and temperature) recorded during the experiment, were then correlated using statistical models to identify key genes and biological processes with greater drought resistance. This could contribute to the development of cotton varieties better suited to arid climates and/or requiring less water, while maintaining productivity even in a context of climate change.

 

Finally, in 2024, the Moncler Group introduced an environmental training course available to all employees, which includes a module on water resource management. The module was designed to provide employees with the necessary tools to understand fundamental concepts, including water stress, and explores the calculation of an organisation’s water footprint, analysing both direct and indirect consumption.


Waste

The waste generated by the Moncler Group’s direct activity is primarily composed of packaging material, 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 continue to refine its processes in order to achieve this objective.
The actions taken by the Group in the area of waste management are closely aligned with the objectives defined in the Environmental Policy to minimise waste generation, maximise its recycling and reduce the environmental impacts of its activities. In this regard, all corporate offices, production sites and the 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 2024, the Group generated around 1,700 tonnes of waste at these sites, about 7% less than in 2023. In particular, no waste generated at its corporate offices, production sites and logistics hub was sent to landfill or incineration without heat recovery, and approximately 85% of waste generated was sent for recycling and/or recovery.

This result was achieved thanks to a series of programmes aimed to maximise the material sent to recycling networks, implemented with the support of companies specialised in proper waste disposal. In recent years, 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 2024 the Group sent 99% of all textile waste material for recycling, in line with the figure for 2023. This was made possible by continuous dialogue with partners and organisations to explore innovative solutions and integrate recycling programmes to minimise the material sent to waste-to-energy and/or landfills.
In particular, the Sustainability Innovation team continued its research and collaboration with external partners to identify solutions for the recycling and recovery of textile material of finished garments. In 2024, as in previous years, no unsold garments were sent to incineration with energy recovery or to landfill; rather, they were recycled to recover fabric, yarn or other materials.
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 2024, these disposal practices avoided around €160,000 in environmental and social costs8.
With regard to textile scraps and their re-use and recovery, in 2024, the Group continued to actively collaborate, at its production sites and with various suppliers, to reduce scrap and losses, and consequently textile waste, by optimising the use and cutting of fabrics, while implementing the infrastructure needed to recycle and maintain the intrinsic value of unavoidable scrap. For example, also in 2024, 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 active the 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 5% reduction in the weight of waste per garment produced at the smart factory by the end of 2025, compared to 2024.

The periodic and ongoing introduction of innovative production processes and advanced machinery reflects the Group’s continuous commitment to keeping pace with the industrial transitions typical of the sector. These transitions also require a constant focus on reskilling employees to ensure their readiness for new production processes and technologies. Specifically, alongside the implementation of the new factories at the neighborhood of Trebaseleghe, the Group carried out targeted training initiatives for the employees involved in the new production process.

Reducing the amount of waste sent to incineration or landfill has helped to avoid the greenhouse gas emissions associated with waste treatment, with a positive impact not only on the environment, but also on the alignment with the Group’s emission reduction targets.
Moncler actively engages its employees, encouraging them to properly dispose of waste in accordance with local regulations and/or best practices. To support this commitment, in 2024 the Group developed a course on environmental sustainability, which includes a module dedicated to the efficient use of resources and circularity. The course covers key concepts such as the distinction between renewable and non-renewable resources, the main characteristics of the waste produced, and explores the benefits of a circular approach in the fashion industry.

 

Lastly, as previously described, 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.

RESOURCE OUTFLOWS BY TYPE⁶ (tonnes)20232024

Non-hazardous waste

1,807.8
1,688.2

Paper and cardboard

647.7
675.2

Mixed packaging

333.2
317.5

Wood

254.1
260.0

Plastic

161.5
148.5

Fabric

346.5
216.8

Metal

29.2
49.9

Glass

0.9
-

Other

35.6
20.3

Hazardous waste⁷

1.8
3.7

Total waste produced

1,809.6
1,691.9
WASTE BY DESTINATION (TONNES)20232024

TOTAL WASTE RECYCLED OR RECOVERED

1,614.1
1,431.2

TOTAL WASTE DISPOSED

195.5
260.7

of which landfilled

-
-

of which incinerated with energy recovery

182.1
255.4

of which incinerated without energy recovery

0.1
-

of which transferred to other disposal operations

13.3
5.3

Notes

1 For the direct water consumption of offices, the production site and logistics hub, primary data were used. For the water consumption of stores and outlets, water withdrawals data, collected from a sample of LEED-certified stores, were used; water consumption indices were applied to this sample to estimate total consumption on the entire network of directly managed stores and outlets.

2 Since the Group’s direct withdrawals are based on consumption similar to sanitation services, almost all of the water withdrawn is discharged into urban water systems. Water consumption represents the portion of water not returned to the system due to evaporation losses, mainly caused by extraction and pre-sanitisation treatment and wastewater treatment.

3 Indirect water consumption related to the production, extraction and processing of raw materials was estimated using data on materials used, which were already considered for calculating the “Raw materials and finished garment production” category of scope 3 emissions, thus ensuring consistency in the calculation perimeter. The analysis is mainly based on the World Apparel Life Cycle Database (WALDB), which collects data on the production of the major textile fibres, both natural and synthetic, in their main countries of origin, also including specific information on processing. In turn, the WALDB is based on Ecoinvent, the leading global database for the Life Cycle Assessment (LCA) of apparel products.

4 Indirect water consumption associated with the production and extraction of raw materials, such as cotton-coltivation, the livestock-raising phase for wool and production processes for synthetic fibres.

5 Indirect water consumption associated with processing such as spinning, weaving, dyeing, manufacturing, ironing, garment dyeing etc.
6 The data refer to offices and logistics hub in Italy and the production site in Romania. It does not include waste directly managed by local municipalities. The data do not include waste generated in the stores in the Group’s retail network. This figure was estimated using primary waste volume data collected for a sample of store subject to LEED certification. The waste relates mainly to packaging material from the products sold. The estimated total is about 1,028 tonnes.
7 The data mainly refer to obsolete or decommissioned electronic devices. The Group did not generate radioactive waste in 2024, in line with 2023.
8 The environmental and social costs avoided thanks to the Group’s disposal practices have been estimated using a methodology developed by a specialized institute that conducts research in labor markets, sustainability, and health, and aims to provide valid, comparable data to support evidence-based decision-making. This methodology quantifies the environmental and social costs of waste management practices, considering factors such as human health deterioration, quality of life reduction, and economic losses due to soil impoverishment.