Moncler Group is committed to promote the protection of natural habitats and animal welfare in the areas where its production sites and supply chains are located, recognising the importance of safeguarding ecosystem and biodiversity.
The first step the Group took in line with this commitment was to identify the main biodiversity risks present within its value chain. In the past years the Group, with the active involvement of its suppliers, carried out a hotspot analysis to identify the main areas of supply of its strategic raw materials, quantifying, for each of them, the impact in terms of land use, climate change, water stress, land and marine pollution. During 2025, the analysis was progressively extended to additional materials, also including paper and cardboard used for packaging, thereby expanding the scope of the assessment along the value chain.
This assessment was done using a location-specific approach that enabled the evaluation of the impact-related biodiversity risks both of Group’s own operations sites and of its value chain. The approach, developed on the basis of the guidelines of the Science Based Targets for Nature (SBTN)1 and the AR3T (Avoid, Reduce, Restore and Regenerate, and Transform) framework, enabled the identification of the impacts generated by the Group, and the prioritisation of mitigation actions.
Regarding its own operations, based on the Natura 2000 database, a European network of protected sites under the European Habitats and Birds Directives (database used also by IBAT tool), there are no corporate and production sites directly operated or managed by the Group in or adjacent to Protected Areas.
Regarding the impact-related risks along the supply chain2, the Group analysed every life cycle stage, from cultivation and extraction of raw materials to the production of semi-finished and finished products. The analysis showed that raw material cultivation and extraction are the most impacting life cycle stages for the majority of raw materials assessed. In particular, greatest biodiversity impacts are associated with animal fibres, mainly wool and cashmere, related to the use of soil during grazing.
Based on the evidence gathered, the Group has identified its priorities for intervention, considering the significance of the potential impacts, the urgency of the actions and their technical and economic feasibility, as reflected in the new 2026-2028 Sustainability Plan. Among the targets defined in the new plan, the Group has committed to continuing to support regenerative farming practices in the cotton and wool supply chains, helping to mitigate impacts on both biodiversity and greenhouse gas emissions.
In addition, the results of the analysis were shared with the risk management team, which evaluated them and integrated them in the Enterprise Risk Management (ERM) model and in the Risk Register; in particular, the risk assessment was done based on the analysis of the Group's dependence on operations and on the sourcing of certain raw materials from certain Regions where the impact on biodiversity was found to be potentially greatest.
This approach was updated in 2024 with the support of a qualified third-party organization. The analysis focused on raw materials with potentially relevant impacts on biodiversity, specifically those of natural origin, mainly wool, cashmere, cotton and down, used in the Spring/Summer (SS) and Fall/Winter (FW) 2024 collections.
The Group assessed both the “state of nature”, defined through a set of indicators capable of describeing environmental conditions in physical, chemical and biological terms in the areas in which it operates, and the “pressures on nature”, attributable to the five drivers3 of biodiversity loss identified by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)4. These pressures were analysed through Life Cycle Assessment (LCA) studies aimed at estimating the potential impacts related, in particular, to land use, water consumption and water and soil pollution.
The study was applied to both directly managed sites and to the sourcing areas of raw material with potentially significant impacts in terms of biodiversity, with particular reference to natural raw materials, mainly wool, cashmere, down and cotton. During 2025, the analysis was progressively extended to additional materials, also including paper and cardboard used for packaging, thereby expanding the scope of the assessment along the value chain.
Based on the evidence gathered, the Group has identified its priorities for intervention, considering the significance of the potential impacts, the urgency of the actions and their technical and economic feasibility, as reflectedin the new 2026-2028 Sustainability Plan.
Based on the results of the biodiversity impact analysis, and in order to mitigate potential risks, a series of actions have been prioritised following the AR3T (Avoid, Reduce, Restore and Regenerate, and Transform) framework, both within the Group’s activities and along its supply chain.
The actions implemented concern:
AVOID
- Key raw materials traced with the aim, among others, of identifying areas that are at potential risk for biodiversity
An essential activity for environmental analyses, not only concerning biodiversity, but also climate change, as well as for social assessments, is the traceability of products and production processes. This practice is assumingan increasingly central role in business strategies, with a view to identifying and assessing risks, opportunities and impacts across the supply chain.
Since 2023, the Group has traced, at regional level, over 80%5 by volume for each of the nylon, polyester, cotton and wool fabrics and yarns, in addition to the 100% traceability already achieved for down raw material since 2015. In particular, raw materials of natural and animal origin, specifically cotton and wool, were traced from the growing or farming stages, including, where applicable, the processes of spinning, weaving, knitting, dyeing and finishing. Synthetic raw materials, specifically nylon and polyester, were traced from the spinning phase, including, where applicable, weaving, dyeing, printing and finishing processes.
Depending on the material type and the maturity of technical solutions available on the market, various activities and projects to verify the information have been explored. These include laboratory tests and certifications to ensure the reliability and robustness of the collected information. For example, based on the sample defined, isotope tests are used for cotton materials to verify the declared geographical origin, while DNA tests are carried out for organic cotton materials to investigate the presence of genetically modified organisms (GMOs). Finally, for materials made from recycled polyester, tests are conducted to investigate the presence of specific indicators relating to the recycled content. For certified materials (such as GOTS, OCS, GRS, etc.), suppliers are required to provide certifications and/or documents proving compliance with the required standard.
In 2025, activities to enhance digitalisation and the consolidation of traceability data continued, through a platform managed in collaboration with a third-party entity, optimising the data collection from suppliers. The project is crucial in deepening the understanding of supply chain dynamics and improving the quality of primary data, enabling more accurate carbon and water footprint analyses.
- Promotion of sustainable forest management
The Group uses paper, cardboard and wood materials made exclusively from recycled and/or reused raw materials and/or from responsibly managed supply chains, which guarantee the absence of deforestation, through recognised certifications, such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC). In 2025, 100% of paper and cardboard materials were FSC or PEFC certified and, as previously mentioned, 100% of the wood used in logistics processes was reused.
REDUCE
- Progressive introduction of “preferred” materials, including the recycled materials
As stated in the Raw Material Manual, the Group is progressively introducing “preferred” materials into its collections. These include, in addition to organic materials, materials certified according to specific standards and recycled ones, which help reduce the use of virgin raw materials. To date, 100% of strategic raw materials comply with the Raw Material Manual. In the Group’s 2025 collections, over 55% of yarns and fabrics are made with preferred materials, a 12 percentage-point increase compared with 2024.
RESTORE AND REGENERATE
- Increasing the use of raw materials sourced from agricultural or farming practices with a lower impact on biodiversity compared with traditional methods
The Group, as described in the Raw Material Manual, with regard to natural raw materials, is progressively including in its collections materials certified according to standards such as, for example, the Global Organic Textile Standard (GOTS), RegenAgri, the Organic Content Standard (OCS), the Responsible Alpaca Standard (RAS), the Responsible Mohair Standard (RMS) and the Responsible Wool Standard (RWS), all of which aim to reduce environmental impact and protect biodiversity. These standards promote responsible land use, combat deforestation and seek to preserve natural ecosystems, while limiting pollution and land degradation. Over 55% of the cotton used in the 2025 collections6 comes from organic farming practices (over 37% in 2024) and over 70% of the wool is certified according to specific standards, a slight increase compared with 2024.
- Support for reforestation and territorial enhancement
In 2025, Moncler supported a project promoted by the Office National des Forêts (ONF) in an area of over a hectare recently purchased by the municipality of Monestier-de-Clermont, the town where the brand was founded in 1952. The initiative involved the planting of more than 900 trees and the creation of an educational pathway with interpretive panels and rest areas. The project was carried out in close collaboration with the competent authorities, the ONF teams and the local forestry technician. This intervention combines reforestation, environmental awareness and landscape enhancement, strengthening the connection between Moncler and its place of origin.
- Promotion of regenerative agriculture projects
Since 2022 the Group has been committed to supporting regenerative agricultural practices in the cotton and wool chains, with mitigation effects on both the impact on biodiversity and greenhouse gas emissions. Regenerative agriculture is an approach aimed at improving soil health and fertility, increasing its capacity to absorb carbon from the atmosphere, while also protecting water resources and biodiversity.
Since 2023, the Group has joined two specific projects related to the cotton supply chain: the Unlock Programme pilot project in India and the United States, promoted by The Fashion Pact, and the Cotton 2040 project of the Ecosystem Services Market Consortium (ESMC)7 in various Southern US States, including Alabama and Tennessee, both aimed at supporting cotton farmers in the application of regenerative agricultural practices. In 2025, the Group continued to support the Unlock collective project, helping to extend the programme to new farmers, explore new geographical areas and enhance technological solutions to support small cotton producers in South Asia, and continued its collaboration with ESMC by taking the projects forward in Tennessee and launching new ones in Texas.
In 2023, the Group also joined a regenerative agriculture project in the wool chain in Australia with PUR Projet8, promoting the use of regenerative farming practices during the animal rearing phases. During 2025, the project provided for a phase of analysis of specific indicators, including altitude, slope, soil moisture, radiometric indicators and soil depth, to better understand biodiversity and carbon distribution, key elements for resilient and fertile ecosystems. The data collected helped to update and refine the baseline values, which are fundamental for monitoring the environmental benefits of the project over time.
The Group’s commitment to supporting projects that promote and implement regenerative agriculture practices in the cotton and wool supply chains will continue over the next three years.
TRANSFORM
- Participation in biodiversity working groups
For several years, the Group has been actively involved in working groups and roundtables with industry peers and experts in the field, such as the SBTi, the SBTN and The Fashion Pact, to gain deeper insights into the issues related to biodiversity and the impact of various activities on it, also with the aim of supporting collaborative projects.
Given the evolving regulatory landscape and the increasing attention paid to potential deforestation-related impacts within global value chains, Moncler Group is progressively enhancing its processes to assess sourcing activities and raw materials, with the objective of identifying areas potentially exposed to deforestation-related risks, including the geographical areas and supply chains that may be more vulnerable, and defining targeted mitigation measures where relevant.
For paper, cardboard and wood-based materials, as described in the framework above, the Group is committed to using exclusively recycled and/or reused materials and/or materials certified by the Forest Stewardship Council (FSC) and/or the Programme for the Endorsement of Forest Certification (PEFC), with the aim of ensuring that these materials do not contribute to gross deforestation.
With regard to raw materials used in the Group’s products, based on the assessments and analyses conducted to date, Moncler Group has identified a limited direct exposure to forest-risk commodities. However, as part of its broader approach to understanding biodiversity-related impacts and dependencies across its value chain, the Group has extended its analysis beyond direct exposures to also consider selected indirect upstream impacts associated with its sourcing activities. Through this assessment, Moncler Group identified an area of interest linked to the potential indirect biodiversity impacts associated with feed sourcing practices within the down supply chain. While these impacts are not directly caused by the Group's sourcing activities, they may be associated with upstream agricultural practices related to feed production, which can influence land use and biodiversity outcomes. For this reason, Moncler Group has set the target to integrate the DIST Protocol with a dedicated biodiversity section by 2028. By strengthening the Group’s guidelines and requirements for the down supply chain, this additional section will support the identification, prevention and mitigation of biodiversity-related impacts, including those potentially associated with land use and land use change arising from feed sourcing practices.
Through these actions, Moncler Group aims to prevent deforestation-related impacts associated with the materials it sources where such risks may be materially relevant, in line with the principles of no gross deforestation.
More broadly, these initiatives reflect Moncler Group’s ongoing commitment to continuously assess, monitor and better understand its impacts and dependencies on biodiversity, identifying areas where further actions may be required and progressively strengthening its management approach over time. As scientific knowledge, regulatory frameworks and industry practices continue to evolve, the Group remains committed to exploring and implementing solutions that contribute to the protection and restoration of ecosystems and support the objective of working towards no net loss of biodiversity.