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Reducing greenhouse (GHG) emissions, adopting renewable energy, and improving operational efficiency are the key levers of Moncler’s strategy to fight climate change, defined in line with the 2030 Agenda for Sustainable Development (Sustainable Development Goals – SDGs) set by the United Nations.
With the Strategic Sustainability Plan Moncler Born to Protect, the Company has set strategies and operational objectives that outline the Group’s development path towards carbon neutrality at own sites worldwide by 2021. In 2020, Moncler submitted its CO2 emission reduction targets to the Science Based Targets Initiative (SBTi)1. The SBTi judged the targets to be consistent with the actions companies in different industries need to take to help reduce the global temperature.
Moncler has committed to reduce absolute scope 1 and 2 GHG emissions 70% and absolute scope 3 GHG emissions 14% by 2030 from a 2019 base year. The Company also committed to increase annual sourcing of renewable electricity from 41% in 2019 to 100% by 2023 for its owned and

operated facilities worldwide. Consistently with this commitment, in 2020 the Company purchased 100% of its energy from renewable sources in Italy, Romania, and other countries including China2, Brazil, Russia, and Turkey, achieving a total of 50% of energy consumption from renewable sources. Moncler’s energy consumption is mainly related to the production activity in Romania, as well as to the heating, air conditioning and lighting of the structures and the operation of the IT equipment. The monitoring of energy consumption in 2020 was refined to include, among others, stores at host structures (for example department stores) for which Moncler does not directly manage the data. For this reason, energy consumption in 2020 cannot be compared with the previous two years. In addition to reducing its footprint, in 2020 Moncler continued its collaboration with AzzeroCO2, a company that helps companies identify paths to reduce consumption and compensate for residual and unavoidable CO2 emissions, to compensate for the emissions generated by holding the Regional Retail

Summit held online. In particular, Moncler offset 1.70 tonnes of CO2e associated with the use of computers, projectors, and IT tools through a Verified Emissions Reduction (VER) reforestation project in the Molgora Park, Lombardy, aimed at reclaiming degraded urban areas, creating ecological corridors, and enhancing the traditional landscape by gradually renaturalizing the banks of the Molgora stream that gives its name to the protected area.
Given the nature of Moncler’s business model, in which production is mainly outsourced to suppliers, which account for the most significant amount of emissions (scope 3): about 140 thousand tonnes of CO2e that represent 95% of the total.

To limit the indirect emissions linked to the purchase of raw materials and the production and distribution of its merchandise, the Company has also initiated a series of roundtables with the aim of collaborating more intensively with its producers and logistics suppliers in the application of good environmental practices.

INITIATIVES TO PROMOTE SUSTAINABLE MOBILITY

As a constantly evolving and moving company, Moncler is aware of the impact of urban mobility and encourages its employees to adopt environmentally friendly solutions. By adopting good habits, aimed at limiting air pollution, everyone can contribute to improving the quality of the air we breathe.

In 2020, in light of the COVID-19 pandemic, the Company suspended, for safety reasons, the carpooling initiative for employees of the Trebaseleghe office, Padua, which allowed Moncler people to benefit from spending time with colleagues and to limit the environmental impact of travel. It also provided bicycles to encourage people to use alternatives to public transport, in addition to the 20 bikes made available to

employees at the Milan offices in 2019 to cover short distances.

At the production site in Romania, Moncler continued to provide the shuttle bus service and increased the number of vehicles to ensure safe distancing in accordance with the anti-COVID protocol. The vehicles were disinfected every day, periodically sanitized, and equipped with protective devices and dispensers. Doors were managed separately for getting on and getting off the bus.

This commuting system prevented the emission of more than 4,400 tonnes of CO2, a reduction of 65%, compared to the emissions that would have been generated if each employee had moved by private means. The commitment to sustainable mobility can be witnessed by the growing number of low

environmental impact vehicles in the company car fleet. There are 64 hybrid Company cars, equal to about 35%, and Moncler plans to continue increasing this number.

In 2020, employees with a company car also received a new DKV fuel card which they can use at 8,000 service stations in Italy and 50,000 throughout Europe, thanks to a network of well-known brands and that allow to travel with zero CO2 emissions. Under this system, for every litre of fuel consumed, the corresponding emissions are offset through certified projects of environmental protection.

INITIATIVES TO MITIGATE ENERGY CONSUMPTION AND COEMISSIONS

In order to reduce energy consumption and CO2 emissions, Moncler is engaged in various activities in its stores, offices, logistics hub and production site. These range from gradually replacing traditional lighting systems with LED lights to using green ICT technologies, identifying new methods to use energy more efficiently, and mitigating the environmental impact of employees’ business travel.

As for the efficiency of lighting systems, Moncler continued to achieve important results also in 2020. To date, 99%8 of stores worldwide (100% in the United States, Korea, Japan, and Europe) are equipped with Light-Emitting Diode (LED) systems, as well as the entire production site in Romania, the finished products warehouse, and the new area of the logistics centre at Castel San Giovanni, Piacenza, with an area of approximately 40,000 square metres. As for the corporate offices, the significant refurbishment of the Trebaseleghe, Padua, offices was completed in 2020 and all offices and new areas (for a total of 6,000 square metres) were equipped with more efficient lighting systems, with the use of LED lamps and thermal insulation systems to ensure greater energy efficiency. Latest-generation LED technology delivers high-quality lighting and, under certain conditions, up to 80% in estimated energy savings compared to the former lighting systems, with less residual heat. In terms of environmental impact, LED lights have an

average life that is significantly longer than that of traditional light bulbs, and are made almost entirely of recyclable materials. In 2020, Moncler invested around 1.2 million euros to install LED lights or to replace traditional lighting systems. Also in the field of energy saving, in 2020 Moncler continued an evaluation of the existing air conditioning systems in its stores in order to identify more eco-efficient solutions.

To develop a better understanding of the initiatives that could feasibly reduce the environmental impact of its stores, Moncler is also engaged in assessing sustainability requirements in the store design process. In addition to style, sophistication, and practicality, the Company is paying more and more attention to sustainability aspects in the design and realization of its stores. While it is fundamental that stores feature good lighting, layout, climate control, and functionality, the Company is aware that these aspects need to be managed as soundly as possible to limit their impact on the environment. The Company is also committed to minimizing the environmental impact of its Information and Communication Technology (ICT) systems, by implementing increasingly efficient and innovative solutions and providing all offices with guidelines for the purchase of eco-friendly ICT equipment. Moreover, Moncler leverages the potential offered by new technologies that favour remote communication, including the most

innovative video conferencing and telepresence systems, which reduce the impact of business travel on both the environment and people’s quality of life.

To date, Moncler has 32 conference rooms equipped with modern video conferencing or telepresence technology. In 2020 these systems theoretically prevented over 15 million kilometres of business travel, estimated to be equal to approximately 970 tonnes of CO2 equivalent9.

In addition to the video conferencing systems in the offices, since 2019 Moncler has widely used the web desk conference system, i.e., a video conferencing system for a user’s IT device that integrates with the systems in the video rooms of the company’s offices, as well as connecting external video conferencing systems to the company network. This video communication system allows Moncler to offer staff outside the company the possibility to contact internal staff without having to physically move. In 2020, as the COVID-19 emergency persisted, employees worked mainly from home. This way of working led to use, in 90% of the cases, platforms permitting online meetings and video conferencing preventing the emission of about 1,800 tonnes of CO2 as corporate employees did not have to travel to the workplace using their own cars or public transport.

MONCLER AND EXTREME E: TOGETHER FOR THE OFF-ROAD CHAMPIONSHIP DEDICATED TO ELECTRIC CARS

In 2020 Moncler announced a partnership with Extreme E, the new off-road racing series that seeks to reconcile adventure and the environment seeing electric cars compete in some of the most remote corners of the planet to highlight the climate change challenges faced by different ecosystems. The races will be held in five different stages, the first is scheduled for April 2021 in Saudi Arabia, continuing in Senegal, Greenland, Brazil and will end in the evocative Tierra del Fuego in Argentina in December. Each stage will be an opportunity to raise public awareness on the danger of global pollution and other environmental

issues ranging from the melting of glaciers, to the runoff of melt water and deforesta- tion. The championship envisioned ad hoc initiatives for each stage, for example training courses on environmental issues will be organized in Greenland in collaboration with UNICEF; initiatives will be carried out with The Nature Conservancy, a prestigious organization for the conservation and protection of lands and water resources, to promote agro-forestry in the Amazon; millions of mangroves will be planted in Senegal with the NGO Oceanium and many other projects will be implemented to support local communities and territories.

Moncler will provide the entire Extreme E team with a dedicated uniform to protect them during these races in remote areas. The co-branded uniforms will include some of the Group’s most iconic outerwear as well as t-shirts, soft accessories and footwear for the diverse types of terrain. In addition, the initiative will also promote a very important topic for Moncler: Diversity and Inclusion. To this end, all the teams participating in the races will be made up of a male and a female driver, with the aim of promoting gender equality.

NOTES

1 Endorsed by CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), the Science Based Targets initiative establishes and promotes best practices for setting science based targets and evaluates the targets submitted to it by businesses.

2 Moncler’s energy consumption from renewable energy includes the Chinese mainland, Hong Kong SAR and Macao SAR. While the corporate energy consumption in Taiwan is currently derived from non-renewable sources.

3 The data includes total consumption estimated on the basis of the total cost of natural gas (except for cases in which data is managed by the host department stores).

4 Consumption and emissions for the worldwide car fleet (2020) and the car fleets in Italy and Romania (2019). In 2020 the car fleet was made up of 35% hybrid vehicles, to which the relative consumption factors of vehicles were applied. For the 2018 recalculation for the Moncler fleet, the specific emission factors for each fuel were applied as provided by the EN 16258 standard.

5 The 2019 and 2018 data do not include the energy consumption of stores in host structures (for example department stores) for which Moncler does not directly manage the data.

6 The calculation of CO2e emissions (which includes CH4, NO2, HFC, PFC, SF6 emissions where present) was carried out in accordance with the GHG Protocol guidelines. The parameters used for the calculation are derived from IEA, 2019 (emission factors for electricity), UNI EN 16258 (fuel emission factors).

For 2018, energy consumption values and related CO2e emissions have been revised following the refinement of the estimation methodology and updating of the conversion factors.

8 Excluding the 16 shop-in-shops in which lighting is provided by the host department stores, where Moncler cannot take action.

 The reduction in emissions achieved by using video/telepresence conferencing technologies was estimated by:
– considering only video/teleconference calls lasting more than 20 minutes;
– assuming an average number of four participants in each video/teleconference call;
– associating flights with the international video/teleconference calls. COestimates were calculated starting from the distance in kilometres between the cities connected by the video/teleconference calls assuming an average movement of two passengers;
– associating car journeys with the national video/teleconference calls. CO2 estimates were calculated on the basis of the distance in kilometres between the cities connected by the video/teleconference calls;
– considering only one calling point and one receiving point for calls involving more than two countries (e.g., Italy, Japan and the United States);
– for plane and car journeys, average kg CO2e/pkm and kg CO2e/km coefficients were used, obtained through processing for Moncler’s business travel on a tool certified in compliance with UNI EN 16258.

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