SAFEGUARD BIODIVERSITY

Moncler Group is committed to promote the protection of natural habitats and animal welfare in the areas where its production sites and supply chains are located, recognising the importance of safeguarding ecosystem and biodiversity.
The first step the Group took in line with this commitment was to identify the main biodiversity risks present within its value chain. Over the last years the Group, with the active involvement of its suppliers, carried out a hotspot analysis to identify the main areas of supply of its strategic raw materials, quantifying, for each of them, the impact in terms of land use, climate change, water stress, land and marine pollution.
This assessment was done using a location-specific approach that enabled the evaluation of the impact-related biodiversity risks both of Group’s own operations sites and of its value chain. The approach, developed on the basis of the guidelines of the Science Based Targets for Nature (SBTN)³⁵ and the AR3T (Avoid, Reduce, Restore and Regenerate, and Transform) framework, enabled the identification of the impacts generated by the Group, and the prioritisation of mitigation actions.
Regarding its own operations, based on the WWF Biodiversity Risk Filter tool, there are no corporate and production sites directly operated or managed by the Group in or adjacent to Protected Areas.

Regarding the impact-related risks along the supply chain³⁶, the Group analysed every life cycle stage, from cultivation and extraction of raw materials to the production of semi-finished and finished products. The analysis showed that raw material cultivation and extraction are the most impacting life cycle stages for the majority of raw materials assessed. In particular, greatest biodiversity impacts are associated with animal fibres, mainly wool and cashmere, related to the use of soil during grazing. It also emerged the presence of some areas at risk of water stress along the down and cotton supply chain.
In addition, the results of the analysis were shared with the risk management team, which evaluated them and integrated them in the Enterprise Risk Management (ERM) model and in the Risk Register; in particular, the risk assessment was done based on the analysis of the Group’s dependence on operations and on the sourcing of certain raw materials from certain Regions where the impact on biodiversity was found to be greatest.
On the basis of this analysis, the first projects were defined, both at the Group’s activities and along the supply chain, aimed at minimising the impact on biodiversity by 2030.
In particular, the Group is committed to supporting regenerative farming practices in the cotton and wool supply chains, with mitigation

effects on both the impact on biodiversity and greenhouse gas emissions. Regenerative farming is an approach that aims to improve the health and fertility of the soil, increasing its capacity to absorb carbon from the atmosphere, while also protecting water resources and biodiversity.
In 2022 projects were identified to support regenerative practices linked to the cotton and wool supply chains.
In 2023 the Group took part in two specific projects related to the cotton sector: the pilot project Unlock Programme, organised by The Fashion Pact, and the Cotton 2040 project of the Ecosystem Services Market Consortium (ESMC)³⁷, both of which aimed to provide incentives for cotton farmers to apply regenerative and low-impact farming practices. At the end of the year, the Group also launched a regenerative farming project in the wool supply chain in Australia with PUR Projet³⁸, promoting the use of regenerative practices in animal rearing, with the aim of improving the farming practices used.
In view of constant improvement, thanks to the data obtained from the traceability project carried out throughout the supply chain, in 2024 the Group will update the analysis to quantify the impacts on biodiversity and align the methodology with the developments of the new guidelines of the SBTN framework.