Traceability) were conducted across the entire down supply chain.
Moncler has a zero tolerance policy against major compliance breaches, which can lead to immediate contract termination. That being said, the Group 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 follow-up audits.
In 2018, most instances of non-compliance were related to issues of occupational health and safety and management of employment relationships. All non-compliance cases were addressed through corrective actions agreed upon with the suppliers and these were verified via follow-up audits. The audits carried out in 2018 found two cases in which the supplier’s conduct was found to be not in line with Moncler’s ethical principles and therefore the collaboration in place was terminated.
Aware that fostering supplier responsibility principles benefits mutual sustainable growth, in addition to ongoing awareness-raising activities on ethical, social and environmental issues, in 2018 Moncler decided to support its supply chain in a number of ways.
The Company has launched a support programme for a number of strategic suppliers, making health and safety experts available to provide advice and develop knowledge of best practices, as well as financial support for investments in technologically advanced machinery for special processes.
Finally, Moncler is updating its vendor rating system by including new social and environmental indicators with the aim of providing an overall assessment of the supplier that takes due account of sustainability aspects. Each indicator will be weighted, contributing to the overall assessment of each supplier based on scores achieved in the different areas. The vendor rating macro-areas updated in 2018 were:
• sustainability and compliance (working conditions, environmental practices, animal welfare, etc.);
• quality (defect rate in manufacturing, quality grievances reported to the customer service, etc.);
• delivery and service level (flexibility, punctuality of delivery, etc.);
• costs (price competitiveness, logistics costs, etc.);
• innovation (technological capacity, appetite for innovation, etc.).