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.