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ENERGY CONSUMPTION AND CO2 EMISSIONS

In addition to heating, air conditioning, lighting, and computer equipment, Moncler’s energy consumption is mainly related to the production activities at its site in Romania.
As evidence of its attention to the environment and to reducing emissions into the atmosphere, from 2017, 100% of Moncler’s purchases of energy in Italy are from renewable sources. In 2018, the Company also added about 30 vehicles with low environmental impact to its company car fleet.
In addition to reducing its footprint, in 2018 Moncler launched an initiative in collaboration with AzzeroCO2, a company specialised in supporting companies in identifying paths to reduce consumption and compensate for residual and unavoidable CO2 emissions, to compensate for the emissions generated by the business travel of its employees. In particular, by planting about 2,600 trees in the municipality of Gaggiano, Milan, Moncler compensated all the 1,800 tons of CO2 associated with travel by air and train and with the company car fleet of its Italian employees and the travel of 400 employees from all the Regions that participated in the 2018 worldwide summit in Zermatt, Switzerland.
For all the other initiatives to reduce energy consumption and emissions (from the most eco-efficient lighting systems to the use of more eco-friendly Information and Communication Technology systems) see also next section.

INITIATIVES TO MITIGATE ENERGY CONSUMPTION AND CO2 EMISSIONS
In order to reduce energy consumption and CO2 emissions, Moncler is engaged in various activities in its shops, offices, logistics hub and production site. These range from gradually replacing traditional lighting systems with LED lights, to using green ICT technologies, to identifying new methods to use energy more efficiently, to mitigating the environmental impact of employees’ business travel.
As for the efficiency of lighting systems, Moncler has achieved important results. In particular, to date, 96%(4) of shops worldwide (100% in the United States, South Korea and Europe) are equipped with Light-Emitting Diode (LED) lights. Significant investments were also made in 2018 to provide the production site in Romania and the new logistics hub in Castel San Giovanni, Piacenza, with LED lighting. As regards the corporate offices, from 2017, as part of the renovation project of the Trebaseleghe, Padua, an entire area was already equipped with more efficient lighting systems, using LED lamps, and with insulation systems ensuring greater energy efficiency. Latest-generation LED technology delivers high-quality lighting and, under certain conditions, up to 80% in estimated energy savings compared to the former lighting systems, with less residual heat. In terms of environmental impact, LED lights have an average life that is significantly longer than that of traditional light bulbs, and are made almost entirely of recyclable materials.

In 2018, Moncler invested about 1.7 million euros to install LED lights or to replace traditional lighting systems.

Also in the field of energy saving, in 2018 Moncler began an evaluation of the existing air conditioning systems in its shops in order to identify more eco-efficient solutions. In order to develop a better understanding of the initiatives that could feasibly reduce the environmental impact of shops, Moncler is also engaged in assessing sustainability requirements in the shop design process. In addition to style, sophistication, and practicality, the Company is paying more and more attention to sustainability aspects in the design and realisation of its stores. While it is fundamental that stores feature good lighting, layout, climate control, and functionality, the Company is aware that these aspects need to be

managed as soundly as possible to limit their impact on the environment.
The Company is also committed to minimising the environmental impact of its Information and Communication Technology (ICT) systems, by implementing increasingly efficient and innovative solutions and thus providing all its offices with guidelines for the purchase of green ICT equipment.Moreover, Moncler leverages the potential offered by new technologies that favour remote communication, including the most innovative video conferencing and telepresence systems, which reduce the impact of business travel on both the environment and people’s quality of life.
To date, Moncler has 24 conference rooms equipped with modern video conferencing or telepresence technology, 6 more compared to 2017 (thanks to the

set-up of new facilities at the offices in Milan, Trebaseleghe, Paris, Hong Kong and Tokyo). In 2018, these systems theoretically prevented about 22.5 million kilometres of business travel, estimated to be equal to approximately 3,650 tonnes of CO2 equivalent(5). In addition to the video conferencing systems in the offices, in 2018 the “web desk conference” project was launched, i.e., a video conferencing system that can be used by a user’s IT device and integrates with the systems in the video rooms of the company’s offices, as well as connecting external video conferencing systems to the company network. This new video communication system allows Moncler to offer staff outside the company the possibility to contact internal staff without having to physically move.

Moncler is careful when it comes to the selection of eco-efficient ICT components and equipment. The Group mainly uses multi-functional devices that print, copy, and scan all-in-one, which reduces energy consumption and simplifies maintenance.
Existing devices are progressively being replaced with lower energy consumption units. Over the years, the Group has been replacing all hardware components and monitors in Italy with new Energy Star-certified devices. Energy Star is one of the most well-known voluntary energy efficiency programme worldwide. Developed jointly by the United States Environmental Protection Agency and Department of Energy, Energy Star was devised to reduce costs and help protect the environment through the adoption of energy-efficient products and practices.
Products carrying the Energy Star label

guarantee excellent energy performance.
In recent years, the Company has also continued to reduce, replace, consolidate, and virtualise its servers, which has led to considerable benefits in terms of energy consumption and related CO2 emissions. In particular, the extension of virtualisation technologies led to smaller, low-consumption servers, designed to both minimise the amount of energy required to cool the machines, and optimise the use of space and overall performance. In 2018, the infrastructure used reached 372 virtual servers (67 more than in 2017), mainly upgrading the infrastructure of the logistics hub in Castel San Giovanni, Piacenza, where a new server room was built with integrated refrigeration and fire protection systems that allow optimising energy consumption for cooling the hardware.

NOTES

1 The increase in consumption in 2017 and 2018 compared to 2016 is due to the extension of the scope of reporting. The 2016 data includes direct consumption in Italy and Romania only, which accounted for about 82% of the total cost of natural gas. The 2017 and 2018 data include the total cost of natural gas (except for cases in which data is managed by the host department stores).

2 Consumption and emissions for the car fleets in Italy and Romania (accounting for about 100% of the Company fleet). About 54% of the gasoline accounted for relates to the consumption of hybrid cars in which the electric motor has a support function. Therefore, specific emission coefficients are applied in calculating the emissions of this type of vehicle.

3 I fThe coefficients used to calculate emissions were published by: DEFRA (Department for Environment, Food & Rural Affairs) in 2015, and the Department for Business, Energy & Industrial Strategy (BEIS) in the reference years. The calculation of CO2eq (which includes CH4, NO2, HFC, PFC, and SF6 emissions when present) was carried out in accordance with the indications of the Global Warming Potential guide, which is based on the latest scientific studies of the Intergovernmental Panel on Climate Change (IPCC): IPCC Fourth Assessment Report (AR4).

4 Excluding the 15 shop-in-shops in which lighting is provided by the host department stores, where Moncler cannot take action.

5 The reduction in emissions achieved by using video/telepresence conferencing technologies was estimated by:
– taking into consideration only video/tele conference calls lasting more than 20 minutes
– assuming an average number of four participants in each video/tele conference call
– estimating the flights avoided per each international video/teleconference call. CO2 estimates were calculated on the basis of the distance in kilometres between the
cities linked via video/tele conferencing, assuming two people flying in economy class;
– estimating the road trips (by diesel-powered car) avoided per each national video/teleconference call. CO2 estimates were calculated on the basis of the distance in kilometres between the cities linked via video/tele conferencing
– considering only one calling point and one receiving point for calls involving more than two countries (e.g., Italy, Japan and the United States)
– calculating the emissions saved based on the coefficients provided by the Department for Business, Energy & Industrial Strategy (BEIS – 2018).

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