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 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%).

Suppliers that turned out to be non aligned with Moncler’s social compliance standard closed the most relevant non-compliances during the year. On the other hand in 15 cases the Group terminated the partnership with the supplier. 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 its Supplier Code of Conduct, Moncler 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 company performance.
Suppliers must ensure a fair pay system that values workers based on qualifications, skills and experience. Workers must be paid and rewarded for their performance through benefits, wage or non-wage incentives.
Suppliers are required to grant all the benefits provided by law, including, but not limited to, social security, parental leave, annual leave, holidays and must engage in regular social dialogue on issues related to remuneration.

In 2020 Moncler took part to a working group organized by the National Chamber of Italian Fashion aimed at discussing and understanding in depth the topic of living wage meant as the level of income that gives people enough to provide for their family’s basic needs, for food, housing, education, health, child care and savings for leisure and/or for facing eventual unexpected expenditure. In the same year the National Chamber of Italian Fashion, of whom Moncler is a member, conducted a survey endorsed by the independent Fair Wage Network, to verify compliance with the 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 committed to conduct in 2021 through a third party, 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.
In order to assess the alignment between the current level of remuneration and the fair living wage in its operations and in the supply chain, Moncler is collaborating with the Fair Wage Network, an independent organization dedicated to progressing fair wage practices across global value chains. Distinct from an audit approach, the Fair Wage Method focuses on partnerships with factories and suppliers to assess wage practices through worker and management surveys, identify root causes, and implement improvements. The analysis is structured around 12 dimensions, which cover comprehensively the entire spectrum of wage indicators: the payment of the living wage is thus only one core dimension, while other wages practices and pay systems are evaluated and

considered (such as the negotiation of wages through collective bargaining with workers’ representatives, the presence of grievance mechanisms for the collection of complaints on issues related to remuneration etc.). Another main objective consists in assessing operations and suppliers’ performance on the living wage dimension through the use of living wage benchmarks collected for the country where they operate and for the reference market.

The implementation of this assessment and the gradual extension to other Moncler’s suppliers are evaluated and prioritized on the basis of the risk profile of the suppliers deriving from their geographical location and from other drivers such as the presence of a collective bargaining agreement, which ensures social and environmental workforce dialogue and protection. In this regard, 71% of Moncler’s suppliers are based in Italy and are covered by collective bargaining agreements.

Overall, Moncler is committed to collaborate with all the actors of its value chain, with specialized associations and with other strategic partners in order to raise awareness and understanding of the topic of fair living wage for all workers.