RESOURCES CONSUMPTION AND MANAGEMENT

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).
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’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.
In 2024, total water consumption amounted to 1,057 m3, showing a slight increase compared with 2023 (+6.5%), due to an increase in direct production, the acquisition and rental of new buildings, a roughly 9% increase in the Group’s workforce and the expansion of the retail network.

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.

The waste generated by the Moncler Group’s direct activity is primarily composed of packaging material, office waste and textile processing scraps.
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.
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.
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.
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.

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.