For the Moncler Group, 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 a commitment that extends well beyond its boundaries, embracing the entire supply chain.

Suppliers are strategic partners, this is why the Group’s relationship with them goes beyond the economic and commercial sphere. For Moncler and Stone Island, excellence means quality, style, and innovation, but also a commitment to promote a supply chain that is attentive and respectful of workers’ rights, of animal welfare, and of the environment.
The focus on ethical, social and environmental aspects along the supply chain starts with the supplier selection phase and continues with a systematic awareness and monitoring activity. Knowledge, traceability, sharing of best practices and verification are fundamental, not only to limit risk situations, but also, and above all, to generate culture and promote a responsible and sustainable business development to the benefit of the entire supply chain.
All suppliers4, in the contractual phase, must sign the Code of Ethics outlining the principles and guidelines that inspire the Group’s business and guide the behaviour and actions of all those with whom Moncler and Stone Island interact. By signing this Code, suppliers commit to comply with these principles and ensure that their subcontractors comply with them as well. Violation of the principles of the Code constitutes a breach of contract, with the right, depending on the severity of the situation, to immediately terminate the relationship.
In order to steer even better the actions of its partners, the Group has adopted a Supplier Code of Conduct. The Supplier Code of Conduct is inspired by the Universal Declaration of Human Rights and the ILO Conventions, and describes the Group’s expectations for the main areas of a responsible way of doing business. It consists of six sections (Labour and Human Rights, Occupational Health and Safety, the Environment, Animal Health and Welfare, Safety and Quality of Products and Services and Business Ethics) and sets the mandatory requirements that suppliers must comply with in order to begin or continue to be a supplier of the Group.
The Group procedure that governs the selection of new suppliers was updated in 2021. The assessment of a new supplier consists primarily of an on-site visit carried out by the Quality Team to evaluate the supplier’s alignment with the Group’s quality standards. After this technical analysis, the assessment process for new façon manufacturers and finished products suppliers involves an ethical, social and environmental audit by a third party. For raw material suppliers, it requires the completion of an environmental and social evaluation questionnaire supported by documentary evidence and then an audit that is carried out in line with the provisions of the audit plan. By doing so, the Group commits to not include in its supply chain companies that do not comply with the Group’s quality standards and basic ethical, social and environmental principles.
The monitoring of the supply chain continues over the years with periodic and systematic ethical, social and environmental audits performed on suppliers with which the Group already has a collaborative relationship in order to verify compliance with applicable laws and principles contained in the aforementioned codes.
In order to ensure maximum impartiality, audits are regularly conducted by qualified, experienced third parties. The audits focus on verifying respect for fundamental human and labor rights, with particular attention to issues of forced labour, child labour, freedom of association, working hours, guaranteed minimum wage and health and safety.

In addition, since 2020 the Group has required all members of its supply chain to comply with applicable national legislation, work authorisations, decrees, regulations and guidelines on health protection to contain the spread of the Covid-19 pandemic.

Even when not explicitly required by local legislation, the Group has asked its suppliers to define internally and comply with safety protocols containing the measures to prevent Covid-19 infections. These aspects were monitored by Moncler’s technical personnel and the auditors during the audit.
Moncler Group is committed to maintaining 100% coverage of its façon manufacturers and finished products suppliers every three years.
Although also in 2021 the planning of the ethical and social audits was difficult to schedule due to the Covid-19 pandemic, which in some periods of the year prevented auditors from visiting suppliers, the Group was able to stick to the pre-established audit plan.
During the three-year period 2019-2021, Moncler conducted 454 ethical and social audits (both on suppliers and subcontractors), equal to approximately 100% of the volumes assigned to outerwear façon manufacturers, 79% of the volumes assigned to suppliers of other outerwear processes (dye houses, printing works, embroideries, etc.), 95% of footwear and bags suppliers, 100% of tanneries and 98% and 77% of the volumes assigned respectively to knitwear suppliers and soft accessories suppliers.
Also Stone Island, which has a three-year ethical and social audit plan aimed at ensuring the highest coverage of suppliers in its supply chain, during the same three-year period carried out 127 ethical and social audits (on both suppliers and subcontractors), equal to around 98% of the value of orders assigned to finished products suppliers and 83% of the value of orders assigned to façon manufacturers.
With regard to the 180 suppliers audited in 2021, at year-end more than 82% of them were in line with the Group’s social and environmental standards; collaboration was ended with around 5% of them (eight suppliers) while around 13% turned out to have non-compliances at the end of 2021, as the audit activity took place just before the last months of the year and not all the projects aimed at remediating the non-compliances had already been closed.
In 2021, with particular reference to social aspects, 43 of the 180 sites were found to have non-compliances and the relative improvement plan was issued. The main areas of non-compliance related to occupational health and safety (77%) and, only in some cases, the management of employment relationships (23%), including non-compliance relating to wages and remuneration (12%), management of employment contracts (7%) and working hours (4%). In the majority of cases, suppliers that were found to be non-aligned with the Group’s social standards completed their improvement action plans during the year and closed the most relevant non-compliances.
Moreover, during 2021 both Brands also conducted ethical and social audits on main raw materials suppliers equal to 53% of total purchases of materials. In particular, with regard to the down supply chain, Moncler has set the target of having 100% down suppliers compliant with the new human rights and environmental modules included in the DIST Protocol by 2023. For this reason, during 2021 a working group was set up to define and test the checklists to be used during DIST audits.
Lastly, ethical and social audits also continued to be carried out on strategic service suppliers: logistic platforms, external quality control platforms, providers of services at Group offices and stores for which no significant non-compliances were identified.
The ethical and social audits carried out by both Brands include modules on environmental compliance. In addition, in 2021 Stone Island conducted nine environmental audits on a sample of fabric, finishing and dyeing suppliers, while Moncler requested specific in-depth documentation on waste water in 15 companies with wet processes. From the activities no significant non-compliances emerged. It is the Group’s goal to continue to monitor these activities in the upcoming years.
For Moncler, these audit activities were complemented by audits on animal welfare and on down traceability as per the DIST (Down Integrity System & Traceability) Protocol across the entire supply chain. The trend in the number of audits carried out over the last three years is linked to the Moncler’s decision to strengthen its relationship with its most reliable suppliers

by building long-term relationships with them and excluding from the supply chain those who, over the years, have had quality and traceability problems. Stone Island only uses RDS-certified down whose compliance audits are handled by the suppliers and hence not reported in this document.
Notwithstanding the zero-tolerance approach for major breaches, for which the Group reserves the right to terminate immediately the existing contractual relationship with the supplier, both Brands are committed to support their supply chain raising awareness and driving continuous improvement, requiring the implementation of corrective actions where needed. Following each audit, an improvement plan is issued and its implementation is then verified.
In order to verify that corrective measures are effectively implemented by the agreed deadline, the Group carries out both on-site and documentary follow-up audits.
Aware of the fact that promoting principles of responsibility among its suppliers is beneficial to mutual sustainable growth, in addition to constantly raising awareness of ethical, social, environmental and animal welfare issues, the Moncler Group supports its supply chain in several ways. In particular, Moncler supports some strategic suppliers, making health and safety experts available to give advice and develop knowledge of best practices (33 suppliers benefited in the three-year period 2019-2021) and providing financial support for investments in technologically advanced machinery for particular processes (21 suppliers in 2021). The programme will also be extended to Stone Island suppliers in 2022.
Lastly, with the aim of providing an overall supplier assessment that also takes into account sustainability aspects, Moncler has implemented a vendor rating system. Each indicator is weighted and helps to assess a supplier based on the results achieved in each area. The vendor rating areas are:
• sustainability and compliance (working conditions and respect of human rights, chemical requirements, environmental practices, animal welfare, etc.)
• quality (rate of production defects, quality complaints reported to client service, etc.)
• delivery service level (flexibility, punctuality of delivery, etc.)
• cost (price competitiveness, logistics costs, etc.)
• innovation (technological capacity, aptitude for innovation, etc.).
With regard to indirect suppliers, namely suppliers of goods and services not related to products, since 2018 the mapping of suppliers’ quality, social, environmental and health and safety certifications is continuously updated. In 2021, the vast majority of the approximately 600 main indirect suppliers of the Group that have been mapped have at least one certification, and a third of them already have ISO 45001 health and safety certification and/or ISO 14001 environmental certification (in line with the results emerged from the mapping activity carried out by Moncler on around 30 suppliers in 2018, 270 in 2019 and 380 in 2020). The Group also continued its awareness-raising activities aimed at promoting improvement objectives among suppliers linked to the importance of certification processes and has set itself the target of extending the mapping to 200 more indirect suppliers by 2022. Lastly, in 2021, Moncler continued to carry out checks on the reliability of partners, also including information on the management of sustainability issues. In particular, during the year more than 100 indirect suppliers, including manufacturers and maintenance and service providers, have been assessed according to the 28 criteria of the scorecard defined in 2020 and divided into four categories: environment, labor and human rights, health and safety, and ethics. This tool, based on international principles, standards and guidelines such as the Global Compact, Global Reporting Initiative, ISO26000 and the OECD Guidelines, provided a set of parameters making it possible to assess and compare the social and environmental performance of indirect suppliers.


In the Supplier Code of Conduct, the Group acknowledges the importance of ensuring wages aligned with the law or binding collective agreements and, in any case, adjusted to the cost of living, the employee’s basic needs, discretionary income, market benchmarks and the type of professional performances.
Suppliers must provide a fair level of compensation and a career development path that reflects knowledge, skills, abilities and professional experience. Workers must be paid and rewarded for their performances through benefits and wage or non-wage incentives.
Suppliers are required to grant all the benefits provided by the law, including, but not limited to, social security, parental leave, annual holidays and calendar holidays, in addition to engage in regular social dialogue on compensation issues.
In 2020 Moncler took part in a working group organised by Camera Nazionale della Moda Italiana (the National Chamber of Italian Fashion) to discuss and understand the issue of the living wage, meant as a level of income that ensures people to meet the basic needs of family, food, housing, education and child care, savings for leisure and/or for facing unexpected expenses.

In the same year, the National Chamber of Italian Fashion, of which Moncler is a member, conducted a survey endorsed by an independent organization, the 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 guarantee a free and dignified existence for themselves and their families”) in the Italian fashion supply chain.
In 2021, with the support of a third party, Moncler launched a pilot project to test the assessment method for living wage implemented at its production site in Romania and at the premises of two strategic suppliers with the aim of extending it and cover 100% of the Group’s strategic suppliers by 2025.
In particular, in 2021 Moncler partnered with the Fair Wage Network, an independent organisation dedicated to progressing fair wage practices across global supply chains. The methodology adopted by Fair Wage focuses on partnership with companies and suppliers to assess wage practices through workers and managers questionnaires, identifying root causes and implementing improvement activities.

The analysis is structured around 12 dimensions, covering the entire spectrum of wage indicators: the living wage is therefore only one of the dimensions analysed while other variables of the wages practices and pay systems are evaluated such as wage negotiation with workers’ representatives through collective bargaining, the presence of grievance mechanisms for complaints on remuneration issues, etc.. Another area of the analysis involves comparing the results of the assessment with sector and country benchmarks.
The implementation of this analysis and the gradual extension to other Moncler suppliers have been assessed and prioritised on the basis of the risk profile associated with the geographical location of the supplier and other factors, such as the presence of collective labour agreements, which ensure dialogue and respect for social and environmental aspects. To this regard, approximately 70% of the Moncler Group’s suppliers is located in Italy and is covered by collective bargaining agreements.
Overall, the Group is committed to working with all players in its supply chain, with specialised associations and with other strategic partners to increase the awareness and the understanding of the issue of fair wage. The 12 dimensions of analysis of the assessment carried out by Fair Wage Network:


4 90% of significant contracts require compliance with the Brands’ Code of Ethics (update July 2022).