For Moncler, talking about quality also means talking about health and safety, respect for human rights, environmental protection and, in general, ethics in business conduct along the entire value chain. Being a socially responsible company involves taking on a commitment that stretches well beyond its boundaries, embracing the entire supply chain. Suppliers are strategic partners and Moncler’s relationship with them goes beyond strictly economic and commercial aspects. At Moncler, excellence means quality, style, and innovation, but also a commitment to workers’ rights, animal welfare, and the environment across the supply chain.

Moncler’s attention to ethical, social and environmental aspects along the supply chain starts from the supplier selection phase and continues with systematic activities to raise awareness and monitor compliance. Knowledge, traceability, sharing of best practices, and audits are fundamental not only to limit risk situations, but also and above all to generate culture and promote responsible and sustainable business development, to the benefit of the entire supply chain.

Suppliers4 who enter into a contract with Moncler are required to sign the Group’s Code of Ethics, which outlines the principles and guidelines that inspire the business and guide the behaviour and actions of all those with whom Moncler interacts. By signing the Code, suppliers undertake to comply with these principles and to have their subcontractors comply with them as well. Any violation of the principles set out in the Code constitutes a breach of contract, which entitles Moncler, if the breach is serious, to terminate the contract immediately.

To set even more meticulous standards for its partners, for years the Company has had a Supplier Code of Conduct which in 2020 was revised to include the pandemic response and other matters. The Supplier Code of Conduct is inspired by the Universal Declaration of Human Rights and the conventions of the International Labour Organization (ILO), and describes Moncler’s expectations regarding responsible working. It consists of six sections (Labour and Human Rights, Occupational Health and Safety, Environment, Animal Health and Welfare, Safety and Quality of Products and Services, and Corporate Ethics), and sets forth the mandatory requirements to become or continue to be a supplier of the Moncler Group.

Moncler requires potential suppliers, from the very first steps of the selection process, to provide adequate information and documentation that may help understand their actual commitment, also in social and environmental fields. In-house specialists and/or qualified third-party bodies also carry out preliminary visits and checks for Moncler on these aspects before the Company enters into new business relationships. The outcome of this assessment is a prerequisite for initiating any form of collaboration. In addition, potential new suppliers must complete a comprehensive sustainability self-assessment questionnaire, focusing on the main issues related to workers’ rights, health and safety, and the environment. The monitoring of the Group’s supply chain continues with stringent ethical, social and environmental audits in order to verify compliance with applicable laws and the principles set out in these two codes. To ensure maximum impartiality, audits are conducted regularly by a qualified, experienced independent body.

The audits are focused on ensuring fundamental human and labour rights with a particular emphasis on the topics of forced labour, child labour, freedom of association, working hours, minimum wage, and last but not 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 2020, most instances of non-compliance were related to issues of occupational health and safety and, in a few cases only, to the management of employment relationships. During the year there were 15 cases in which suppliers were found to be non-compliant with Moncler’s ethical principles, leading to termination of the partnership. Aware that fostering the principles of supplier responsibility benefits mutual sustainable growth, in addition to ongoing awareness-raising activities on ethical, social, environmental, and animal welfare issues, Moncler supports its supply chain in several ways.

The Company continued its support programme for a number of strategic suppliers in 2020, making health and safety experts available to provide advice and develop knowledge of best practices to 11 suppliers (41 during the period 2018-2020), and providing financial support for investments in technologically advanced machinery for special processes.

Moncler is updating its vendor rating system by including new social and environmental indicators for raw material suppliers, with the aim of providing an overall assessment that also takes account of sustainability aspects. Each indicator is weighted, contributing to the rating of every vendor on the basis of the results achieved in the different areas. The vendor rating macro-areas are:

• sustainability and compliance (working conditions, environmental practices, animal welfare, etc.);

• quality (manufacturing defect rate, quality complaints reported to customer service, etc.);

• delivery and service level (flexibility, punctuality of delivery, etc.);

• costs (price competitiveness, delivery charges, etc.);

• innovation (technological capacity, appetite for innovation, etc.).

The vendor rating system will be gradually extended to other suppliers in the coming years.

As for “indirect” suppliers, that is suppliers of goods and services not related to products, in the three-year period 2018-2020 the Group finished mapping the quality, social, environmental, and health and safety certifications held by its suppliers. Of the approximately 380 principal suppliers, almost all of them have at least one certification and one third of these already have UNI ISO 45001 health and safety and/or UNI ISO 14001 environmental certification (in line with what emerged from the mapping activity carried out on about 30 suppliers in 2018 and on 270 in 2019). During the year Moncler continued its efforts to raise awareness of the improvements its suppliers can achieve in connection with the certification process. It also moved forward with partner reliability checks, enhanced by findings from information providers. This was carried out by Moncler’s Internal Audit department for suppliers considered to be strategic. Last but not least, the Company finished creating a sustainability scorecard with 20 indicators in four categories: environment, labour and human rights, health and safety, and ethics. Based on international principles, standards and guidelines such as the Global Compact, the Global Reporting Initiative, ISO 26000, and the OECD Guidelines, this tool will provide a set of parameters for evaluating and comparing the social and environmental performance of indirect suppliers by means of periodic measurement.


95% of significant contracts require compliance with the Group’s Code of Ethics.


In 2020 the National Chamber of Italian Fashion conducted a survey endorsed by the independent Fair Wage Network, to verify compliance with Article 36 of the Italian Constitution (“workers are entitled to wages proportionate to the quantity and quality of their work and in any case sufficient to

ensure a free and dignified existence for themselves and their families”) in the Italian fashion supply chain. Moncler took part in the roundtable together with other fashion brands and confirmed its commitment to carry out a project aimed at evaluating the fair living wage at its production site in

Romania by 2021 and then extending the evaluation model to its strategic suppliers in the upcoming years, which will provide a better understanding of wage conditions within its supply chain and offer a structured approach to ensuring a fair living wage in every country.