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Reducing greenhouse gas (GHG) emissions by adopting renewable energy and improving operational efficiency is a key lever of the Moncler Group’s strategy to fight climate change, defined in line with the objectives of the 2030 Agenda for Sustainable Development (Sustainable Development Goals – SDGs) set by the United Nations.
In 2020 Moncler submitted its CO2 emission reduction targets to the Science Based Targets Initiative (SBTi)1.

The initiative validated the targets judging them as consistent with the actions required from companies in various industries to help contain global temperature. Moncler has committed to reduce absolute scope 1 and 2 CO2e emissions 70% and absolute scope 3 CO2e emissions 14% by 2030 from a 2019 base year.

Following the integration of Stone Island and the internalisation of Moncler’s e-commerce channel, the Group has started a process to redefine its CO2 reduction targets as recommended by the guidelines of the Science Based Target initiative, to ensure the inclusion of all sources of CO2 emissions and to reflect the actual size and impact of the business. The new targets will be announced as soon as they are validated by the SBT initiative.

ENERGY CONSUMPTION AND SCOPE 1 AND 2 EMISSIONS

Direct and indirect energy consumptions at the Moncler Group’s premises are mainly due to the production activity in Romania and to the logistics hub in Castel San Giovanni (Piacenza), as well as to facility heating, air conditioning, lighting and to the use of IT equipment at the corporate offices and stores of Moncler and Stone Island.
The monitoring of energy consumption in 2021 was further refined and expanded to include, among others, stores at host structures (e.g. department stores) not directly managed by the Group.
Total direct and indirect energy consumption increased in 2021 in line with the growth of the business. Growth that exceeded 2019 also in terms of the number of stores, expansion of offices and number of employees, along with the extension of the perimeter of stores reported in the past, as explained above.
Despite this increase in consumption, within the Moncler brand perimeter it was registered a -35% reduction of scope 1 and 2 (market-based) emissions compared to 2020 and a 41% reduction compared to 2019.

This has been made possible due to greater use of renewable energy, more efficient lighting,

air conditioning and heating systems and an increase in low environmental impact vehicles in the company fleet.

The reduction in scope 1 and 2 CO2e emissions normalised on revenues is even clearer: -49% emissions for million euros of revenues vs 2020.
In 2021, in line with the commitment of the Science-Based Targets and the objectives of the Strategic Sustainability Plan, the Group achieved carbon neutrality8 for all corporate sites at global level. It is also committed to achieving 100% renewable energy at Group sites worldwide by 2023. In line with this latter commitment in 2021 Moncler increased the use of energy from renewable sources by 30% compared to 2020 and installed a photovoltaic system at the logistics hub in Castel San Giovanni (Piacenza), while Stone Island began a process to increase the supply of green energy, starting with the corporate sites in Ravarino (Modena) and Milan, and the stores in Italy.
Overall, the Group uses only energy from renewable sources in Italy, Romania and other countries including China9, the United States,

Canada and France for a total of 80% of the total needs of company sites.

Lastly, in order to achieve climate neutrality, unavoidable residual emissions have been neutralised through two projects certified on the voluntary market and focusing on circular economy and renewable energy, respectively, demonstrating the Group’s commitment to mitigating its impacts.

The first project that has been supported is related to the expansion of a high-energy efficiency plastic waste recycling plant in Romania, and certified according to Gold Standard.
To this initiative adds the contribution to the realisation of a photovoltaic system certified according to the Verified Carbon Standard in Mauritius.
The two projects are important not only from an environmental point of view but also from a social perspective as they enabled the creation of new job opportunities and to raise awareness among local communities, especially in schools, on environmental issues and on the importance of recycling and of sustainable management of local resources.

SCOPE 1 AND 2 EMISSIONS MITIGATION INITIATIVES

In order to reduce energy consumption and CO2 emissions the Moncler Group is implementing various activities at stores, offices, logistics hub and at its production sites. The initiatives range from the progressive replacement of traditional lighting systems with LED lights to the use of eco-friendly ICT equipment, the identification of ways to make energy use more efficient, the use of Building Management Systems for integrated and more efficient energy consumption management, and the promotion of sustainable mobility through the inclusion of low-environmental impact vehicles in the company car fleet.
Also in 2021, Moncler continued to achieve significant results in terms of efficiency of lighting systems. To date, 99%10 of stores worldwide (100% in the United States, Korea, Japan and Europe) have light-emitting diode (LED) systems, as well as the entire production site in Romania and the entire logistics hub in Castel San Giovanni (Piacenza), with an area of approximately 95,000 square metres.
The same type of systems has also been adopted by all Stone Island stores at global level.
With regards to the Moncler corporate sites, in 2020 and 2021 renovation and installation of more efficient lighting systems continued through the replacement of traditional lighting systems with LED lights and thermal insulation systems to ensure greater energy efficiency.

The latest-generation LEDs, in addition to offering excellent light quality, under certain conditions, have an estimated energy savings of up to 80% compared to former lighting systems, while also generating less residual heat. In terms of environmental impact, LED lights have an average life that is significantly longer than the traditional light bulbs, and are almost entirely made from recyclable material. In 2021 the investments made to install LED lights or replace traditional lighting systems amounted to over 1.1 million euros.

At the Stone Island site in Ravarino (Modena), since 2018 activities to replace the air conditioning and gas heating systems with more efficient heat pumps with inverters have begun and office windows have been replaced to ensure high

thermal insulation. In 2022 windows will be replaced at the Stone Island warehouses in Ravarino (Modena).

Also in the field of energy savings, an assessment of the existing air conditioning systems at Moncler stores has been carried out in order to identify more eco-efficient solutions. In 2022, the same analysis will be carried out for Stone Island stores.

To develop a better understanding of the initiatives that could feasibly reduce the environmental impact of stores, the Moncler Group is also focused on the assessment of sustainability requirements in store design. In addition to style, sophistication and practicality, sustainability aspects are becoming increasingly important in the design and realisation of stores. While it is crucial that a store have the right lighting, layout, climate control and functionality, Moncler and Stone Island are aware that these aspects need to be managed in the most balanced way possible to limit their impact on the environment. In 2021 Moncler has started equipping stores with Building Management Systems (BMSs) for the integrated management of all the spaces technological functions, from access control to lighting and air conditioning, and with the aim of implementing a more efficient management of energy consumptions.

From an energy efficiency standpoint, in 2021 Moncler obtained the LEED for Building Operations and Maintenance certification for six existing stores in Europe, America and APAC. In addition, in the APAC Region, the stores of Wuhan, Beijing Sanlitun, Chengdu and Shenzhen obtained the LEED Interior Design and Construction certification (Gold level). The Moncler Group aims to extend the certification processes also to other stores in the upcoming years. In addition, the BREEAM In-Use certification (Excellent level) was obtained for the logistics hub in Castel San Giovanni (Piacenza), demonstrating a more efficient management of the building and improved energy and environmental performances.

Moncler is committed to minimise its environmental impact also in the area of Information and Communication Technology (ICT) services, through increasingly efficient and innovative solutions and by providing all sites with specific guidelines for the purchase of eco-sustainable ICT equipment. Moncler also leverages the potential of new technologies such as innovative video conference and telepresence systems that facilitate remote communication, reducing the impacts of travel both on the environment and people’s quality of life.

To date Moncler has 41 meeting rooms with modern video conference or telepresence systems.
In addition to the video conference systems in the offices, since 2019 Moncler has been using the web desk conferencing system, namely, a flexible video conference system that integrates with the systems in the video rooms at company offices and also allows external video conference systems to be connected to the company network. Through this video communication system, Moncler allows personnel outside the Company to contact internal staff without having to travel.
In 2021, due to the ongoing Covid-19 emergency, employees mainly worked from home. This led to use, in 90% of cases, online meeting and video conference platforms, preventing the emission of around 3,380 tonnes of CO2 as corporate employees did not have to travel to the workplace with their cars or public transport.
In addition, to ensure a higher level of privacy, stability and communication efficiency, video conference systems present in Moncler rooms have been migrated to a cloud service.
Lastly, the commitment to sustainable mobility has continued during the year. This resulted in the increasing introduction of low environmental impact vehicles into the company’s car fleet. In 2021, Moncler’s hybrid company vehicles accounted for more than 65% of the total (56% at Group level), in line with the Brand’s target. Also, Stone Island, following the integration, reviewed its contracts to replace its vehicles with sustainable solutions. The Group’s objective is to continue to introduce this type of car, achieving a 90% coverage by 2025.

SCOPE 3 EMISSIONS

Given the nature of the Moncler Group’s business model, the largest portion of impacts on climate change are generated along the value chain (98% of Group’s total emissions), from the production of raw materials to the production and transportation of garments, the commuting of employees and the impacts related to the use of products by end clients.
In 2021 the activity aimed at monitoring scope 3 emissions continued, and was extended to Stone Island and to all Moncler areas of impact, thus including logistics and e-commerce.
In 2021 scope 3 emissions amounted to approximately 200,000 tonnes of CO2e.

With regard to Moncler perimeter, the only one that allows a comparison with the previous year, total emissions (scope 1, 2 and 3) of the

Company normalised on revenues are reducing by -19%.

The Group, with the aim of limiting the indirect impact related to the purchase of raw materials and to the manufacture and distribution of its products, has set up a series of working groups to increasingly collaborate with its production and logistics suppliers to the application of environmental best practices.
To reduce the environmental impact of the supply chain, in 2021 continued the activities that promote the introduction of products made from raw materials with a lower environmental impact into the new collections. In 2020 Moncler drew up its Guidelines for Sustainable Materials, a protocol that summarises the

criteria and thresholds for guiding the choice of materials, accessories and production processes for low-impact Moncler products.

In addition, the Moncler Group is committed to reduce the consumption of packaging materials and to research and implement lower impact alternatives. In the last few years, the Group has launched a series of programmes for improving packaging design focused mainly on recyclability, reusability and durability as well as on reducing the materials used.

In 2021 the Group, with the aim of beginning the supply chain decarbonisation process, started reporting the type of energy used along the supply chain to identify, together with its suppliers, opportunities for the transition towards renewable energies.

INITIATIVES TO PROMOTE SUSTAINABLE MOBILITY

The Moncler Group is aware of the impact of urban mobility and encourages its employees to adopt environmentally friendly solutions. By adopting virtuous behaviours aimed at limiting air pollution, everyone can contribute to improve air quality.
In 2021, due to the ongoing Covid-19 emergency, at Moncler, the car-pooling initiative for employees of the Trebaseleghe office (Padua) has not been restarted for safety reasons.

The initiative allowed Moncler personnel to benefit from moments of socialisation with their colleagues, while limiting the environmental impact of travel. However, even in 2021 Moncler continued to promote the use of bicycles by making them available to all employees who

applied for them at the Milan and Trebaseleghe offices with the aim of encouraging individual mobility as an alternative to using public transport for short distances.
At the production site in Romania Moncler continued to provide the shuttle bus service, increasing the number of vehicles to ensure social distancing in compliance with the Anti-Covid Protocol. The vehicles were disinfected every day, periodically sanitised and equipped with protective devices and dispensers. In addition, doors were managed separately for getting on and getting off the bus. This commuting system prevented the emission of more than 821 tonnes of CO2e, a reduction of 44% compared to the emissions that would have been generated if each employee had moved by private means.

In 2020, an activity aimed at monitoring commuting emissions has been implemented through a survey in order to investigate the means of transport used by employees at global level. This activity in 2021 was extended also to the employees of the Stone Island Italian corporate sites. Furthermore, a Mobility Manager was appointed in 2021 to promote sustainable mobility of employees by developing a Work Home Travel Plan (WHTP). In particular, in 2021 the corporate sites in Milan have been mapped to analyse the accessibility of workplaces, transport solutions used by employees, distance travelled and time spent for travelling in order to identify areas of intervention to reduce traffic congestion, pollutant emissions and the costs incurred by personnel in Italy.

CARBON NEUTRALITY INITIATIVES

GreenTech: Plastic recycling through a high-efficiency system

The project supported by the Moncler Group and promoted by GreenTech, one of the leading companies in the PET plastic recycling industry in Europe, is related to a plastic recycling plant for bottles and other PET products through energy-efficient technology that allows to reduce emissions compared to traditional disposal methods. In particular, plastic recycling allows for a 45% reduction in CO2 emissions compared to virgin PET plastic production. The company is located in Romania, a key country for Moncler due both to the presence of the Bacau production site and of its own supply chain.

The project offers not only environmental but also social and economic benefits and contributes to accelerate the country’s transition towards a sustainable, low-carbon economy.

 

Henrietta Solar: installation of a photovoltaic system

Henrietta Solar is a project certified according to the Verified Carbon Standard that involves the installation of a photovoltaic energy system for energy production in Mauritius, which has severe exposure to climate change and classified as Small Island Developing States (SIDSs).

Through the construction of 53,700 solar panels, the project will provide green energy to 40,000 people, while preserving an agricultural area of over 20 hectares. The solar panels will generate around 26,500 MWh, replacing the current energy mix with clean and renewable energy, reducing its greenhouse gas emissions by more than 25,000 tonnes of CO2 a year. The project is providing concrete support to the country by reducing its dependence on imports of fossil energy, mainly coal and oil, and contributing to its energy self-sufficiency and to climate change mitigation.

THE MONCLER GROUP AND THE PROTECTION OF BIODIVERSITY

An analysis of raw materials and of their supply chain allowed to lay the foundations to define a process aimed at safeguarding biodiversity, outlining a range of activities for more responsible use of natural resources and for reducing the impact of the supply chain on ecosystems.
In 2021, the Group, with the active involvement of its suppliers, carried out a hotspot analysis to

identify the main sourcing areas of its strategic raw materials and quantify the impact of each of them in terms of land use, climate change, water stress and land and marine environment pollution. The approach, developed according to the guidelines of the Science Based Targets for Nature (SBTN) framework, aims to identify impacts generated by the Group, prioritise mitigation actions and measure results.

The analysis showed that the greatest biodiversity impacts are largely due to animal fibres, mainly wool and cashmere, and related to the use of soil during grazing. At the same time, the presence of some areas at risk of water stress along the down and cotton supply chain also emerged.
Based on these analyses, in 2022 a strategy will be defined to mitigate biodiversity impacts by developing ad hoc projects in the countries where the Group sources.

RAISING ENVIRONMENTAL AWARENESS BY INVOLVING EMPLOYEES

Over several years the Moncler Group has launched numerous initiatives to raise employee awareness of conscious use of natural resources and promote constant attention to the environmental impacts of daily activities.

 

Initiatives to reduce paper consumption

In an effort to raise awareness of the environmental impact of day-to-day activities and promote virtuous behaviours also in offices, at the Italian corporate offices, personal codes have been installed for document printing. The aim is to empower people and rationalise the number of printed documents, thereby reducing toner and paper consumption. Since 2018 the project has been extended to the offices of the EMEA Region in Paris and to the logistics hub in Castel San Giovanni (Piacenza).

Another project launched in 2018 and continued over the past three years, which helped to significantly reduce paper consumption, is the development of an electronic archive of incoming invoices.

This digitalisation programme for all incoming invoices is fully operational for Moncler in Italy, France, Austria, Germany, Belgium, Switzerland, the United Kingdom, Denmark, the Netherlands, Spain, Norway, Sweden, Ireland, the United Arab Emirates, the United States, Canada and Australia and has been implemented in Germany by Stone Island. In 2021 the entire process made it possible to reduce paper consumption by around 1,492 kg.

 

Green convention for employees’ domestic supplies

To demonstrate the Group’s commitment to reducing emissions and adopting renewable energy, an offer dedicated to domestic supply has been identified for all employees with an environmentally friendly energy and technology service provider.

Due to the package, employees can access exclusive benefits to reduce their environmental impact and make their home more efficient.

The services offered include: the supply of energy from 100% renewable sources, certified and with no additional cost; green gas with zero environmental impact, whose CO2 is offset through investments in environmental protection projects; and an energy price without any spread.
In addition, to offer a fast, personalised service to all Moncler Group employees, a dedicated channel has been set up. This initiative will also be extended to the supply chain.

 

Moncler Group forest with Treedom

In partnership with Treedom, the “Who plants a tree, plants hope” programme has been launched to create a corporate forest in Kenya, which, with its 3,220 trees, will help to absorb CO2 emissions by producing oxygen and promoting biodiversity. For Christmas, every employee in Italy was given one of the trees that make up Kenya’s royal forest.
Thanks to a QR code, everyone can monitor the growth of their tree at each stage.

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

In 2020 Moncler announced a partnership with Extreme E, the new off-road championship that seeks to reconcile adventure with the environment seeing electric cars compete in some of the most remote corners of the planet and at risk of climate change. The races took place in five different stages: the first in April 2021 in Saudi Arabia, followed by Senegal, Greenland, Sardinia to end in the Jurassic Coast in Dorset County (United Kingdom) in December.

Each stage was an opportunity to raise awareness of the dangers of global pollution and other environmental issues, from melting of

glaciers to rising sea levels, from plastic pollution to deforestation and biodiversity loss.
The championship included ad hoc initiatives for each stage, for example training courses have been organised on environmental issues in Greenland in collaboration with UNICEF, initiatives were carried out with The Nature Conservancy, a prestigious organisation for conserving and protecting land and water resources, to promote agroforestry in the Amazon. Millions of mangroves have also been planted in Senegal with the NGO Oceanium and many other projects were implemented to support populations

and territories.

Moncler provided the entire Extreme E team with a dedicated uniform to protect them during races in remote areas. The co-branded uniforms included some of the Group’s most iconic outerwear, as well as t-shirts, soft accessories and footwear for various types of terrain.

In addition, the initiative also promoted another topic that is very important to the Moncler Group: diversity and inclusion. All the teams that participated in the races consisted of a male driver and a female driver to promote 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 in setting science-based targets, in addition to evaluating companies’ objectives.

2 The data includes total consumption based on the total cost of natural gas expenses (excluding cases in which the data is managed by the host department stores).

3 The data includes the consumption and emissions of the car fleet with reference to the global perimeter for 2021 and 2020 and to Italy and Romania for 2019. In 2021 the Moncler car fleet was made up of 65% hybrid vehicles (56% at Group level), to which the relative vehicle consumption factors have been applied.

4 The data for 2019 does not include the energy consumption of stores in host structures (e.g., department stores) not directly managed by Moncler.

5 The figure includes green energy certified according to the Renewable Energy Certificate (REC)/Guarantee of Origin (GO).

6 The figure includes insignificant dispersion of refrigerant gases for a total amount of 60 kg in Italy.

7 Calculation of CO2e emissions (including CH4, NO2, HFC, PFC and SF6 emissions, where present) has been carried out in accordance with the GHG Protocol guidelines. The parameters used for the calculation are derived from IEA, 2019, 2020 (emission factors for electricity), UNI EN 16258 (fuel emission factors) and the Department for Environment, Food and Rural Affairs (DEFRA).

8 Achieving carbon neutrality involves reducing impacts through CO2 emission reduction activities such as purchasing energy from renewable sources, using more efficient lighting systems, using vehicles with low environmental impact and neutralising residual emissions with carbon credits generated by positive impact projects. Each credit – certified by the most important international standards, such as the Gold Standard or Verified Carbon Standard (VCS) – certifies that a tonne of CO2 has been reduced or removed from the atmosphere.

9 Moncler’s energy consumption from renewable sources includes mainland China, Hong Kong SAR and Macao SAR. Taiwan’s corporate energy consumption to date comes from conventional energy.

10 Excluding the 13 shop-in-shops where lighting is provided by the host department stores, on which Moncler cannot take action.

11 “Investments” includes indirect emissions generated by the renovation and expansion of stores, furniture and ICT systems.

12 “Other” includes indirect emissions generated by the following categories: waste, business travel, product end-of-life and indirect energy.