least, health and safety. Additionally, in 2020 Moncler required all members of its supply chain to comply with national regulations, work authorizations, decrees, regulations, and guidelines on the subject of health protections and the containment of the COVID-19 pandemic. Even where not expressly required by local regulations, Moncler asked its suppliers to adopt internal safety protocols describing all measures to prevent contagion. These aspects were monitored by Moncler technical personnel and by the auditors.
The scope of audit and the suppliers subject to audits are determined on the basis of a risk analysis and the strategic importance of the supplier and its own supply chain, considering matters such as quality, delivery times, and animal welfare. Specifically, the Company considers the size of orders, the type of goods or services provided and their significance to the business, geographical location, and other parameters such as the number of employees and manufacturing plants, whether there are subcontractors and where they are located, and how difficult it would be to replace the supplier quickly.
Although ethical and social audits were difficult to schedule in 2020 because of the pandemic, which prevented auditors from visiting suppliers at various points during the year, Moncler managed to keep the number of audits in line with 2019 by including follow-ups with suppliers and subcontractors.
During the three-year period 2018-2020, 450 social and ethical audits were carried out (both on suppliers and sub-contractors), equal to approximately 100% of the volumes assigned to outerwear façon manufacturers and suppliers of footwear and bags, 86% of the number of down suppliers and tanneries, and 82% and 73% of the volumes assigned, respectively, to suppliers of knitwear and soft accessories. In addition, in 2020 ethical and social audits were carried out on the main raw material suppliers, accounting for 7% of all raw materials purchased in 2019 (excluding down). Moncler has set a target of covering 80% of its purchases from strategic raw material suppliers by 2025.
It is also committed to maintaining 100% coverage of its façon manufacturers every three years and to extending that threshold to other categories of supplier. Finally, it will continue to carry out ethical and social audits on providers of strategic services: logistics platforms, external quality control platforms, and service providers at Moncler offices and stores.
Additional audits on animal welfare and on down traceability as per the DIST (Down Integrity System & Traceability) Protocol were conducted across the entire supply chain.
Moncler has a zero tolerance policy against major compliance breaches, which can lead to immediate contract termination. Moncler is committed to raising awareness and driving continuous improvement within its supply chain, requiring the implementation of corrective measures when deemed necessary. In this case, the Group verifies that corrective measures are implemented by an agreed deadline through on-site and documentary follow-up audits.
Upon conclusion of every audit, an improvement plan is issued and its implementation is checked during subsequent audits. In the 68 sites, where non-compliances on social aspects have been identified, most of them were related to issues of occupational health and safety (89%) and, in limited cases only, to the management of employment relationships (11%), such as non-compliances referring to disciplinary actions (5%), working hours (3%), employees’ contracts management (2%), wages and remuneration (1%).