For the Moncler Group, the materiality analysis has always been an important tool for identifying the most significant environmental and social priorities for its stakeholders and for the industry, in line with its strategy and business impacts, to identify and manage risks and opportunities and to define the contents of the sustainability reporting.
With the entry into force of EU Directive 2022/2464 on the Corporate Sustainability Reporting Directive (CSRD), the double materiality analysis was introduced, considering two complementary perspectives: impact materiality, which concerns the identification and assessment of the impacts that the Group has (or could have) on the environment and people, and financial materiality, which focuses on the theoretical risks and opportunities arising from environmental, social or governance issues that may negatively or positively affect the financial position, operating result, cash flows, access to finance or cost of capital.
Since 2024, the Group’s Sustainability Unit, with the support of a specialised company, has been conducting a double materiality analysis process aligned with the requirements of the sustainability reporting standards, the European Sustainability Reporting Standards (ESRS), structured into the following phases, as indicated in the “IG1: Materiality Assessment Implementation Guidance” guidelines issued by the European Financial Reporting Advisory Group (EFRAG):
- Understanding the context through an in-depth analysis of the Group’s activities, its business relationships, the context in which it operates and the relevant stakeholders. The goal is to gather the necessary information to map the phases of the value chain, identify the actors involved in each of them, assess the positive, negative, actual and potential impacts as well as identify risks and opportunities. In addition to the in-depth analysis of internal documentation, a benchmarking analysis is conducted to compare the Group with its industry peers, identifying relevant sustainability issues and ensuring a comprehensive and best practice-aligned perspective. To deepen the understanding of the external context, the legislative landscape in which the Group operates and the issues of interest to clients and investors are also considered, as well as the ESG macro-themes described in authoritative articles and scientific publications.
- Identification of impacts, risks and opportunities based on the list of topics and sub-topics provided by the ESRS1 and in the light of what emerged from the analysis of the internal and external context, the list of risks identified through the Group's integrated risk management model (Enterprise Risk Management – ERM), the relevant sustainability topics published in the 2024 Sustainability Statement and the results of the due diligence processes. In the majority of cases, the identified impacts have corresponding risks and/or opportunities. The identification of potentially material impacts, risks and opportunities for the Group has also been carried out thanks to the support of public databases that facilitate the identification of sectoral impacts. In the process of identifying and assessing impacts, risks and opportunities, the Moncler Group takes into consideration all the geographical areas in which it operates, as well as the various activities along its value chain. In addition, where necessary, the specificities linked to individual countries, production sites or business relationships are highlighted. The list of impacts, risks and opportunities identified was subsequently approved by the competent functions during the assessment phase.
- Assessment and determination of material theoretical impacts, risks and opportunities. Each risk and each opportunity are assessed as part of the Group’s Enterprise Risk Management process, while the impacts are assessed by the relevant functions. In particular, for the purposes of the assessment, an analysis is performed to determine whether the generation of the impact, risk or opportunity emerges predominantly in the Group's own activities and/or along its value chain (in the case of the value chain, both upstream and downstream impacts, risks and opportunities are considered), also taking into account theshort, medium or long-termtime horizon2 in which the impact, risk or opportunity occurs or may occur. In line with the provisions of ESRS, the functions assess the impacts taking into account their materiality, measured through scale, scope and irremediable character (the latter only for negative impacts) and likelihood (only for potential impacts). Scale is defined as the measure of the benefit deriving from a positive impact or the severity of a negative impact, scope represents the extent of the impact and irremediable character indicates the extent to which a negative impact can be remedied. The risks and opportunities are instead assessed considering, in addition to the likelihood, the magnitude, defined according to the scale and nature of the related financial, reputational or compliance effects. It is important to point out that negative impacts and risks are identified and assessed without taking into account mitigation actions, while, in the case of positive impacts and opportunities, the enhancement actions already implemented by the Group. The assessment scales described above, whether qualitative or quantitative, were defined based on those used to assess corporate risks according to the Group’s Enterprise Risk Management system. Opportunities were identified and assessed in continuity with the priorities according to which the Strategic Sustainability Plan is being developed. In line with what has been done in the past regarding social and environmental risks, and also with the aim of including opportunities and their management, the Group updates the ERM register with the results of the double materiality analysis. This approach aims to optimise the monitoring and strategic and operational management of these aspects, ensuring a more integrated vision that is consistent with business priorities.
For the double materiality analysis carried out in 2025, internal and external stakeholders of the Group were involved, expanding the 2024 panel in terms of both the categories represented and the number of individuals interviewed. Internal stakeholders include the corporate functions of Moncler and Stone Island and the members of the Moncler Sustainability Unit, as experts in environmental and social topics related to the strategic pillars of the Sustainability Plan, a sample of employees3 and the Group’s employee representatives4. As external stakeholders, in addition to investors and sustainability experts, representatives of associations and organisations active in social and environmental themes and university professors were also consulted through individual interviews aimed at collecting opinions and feedback on the analysis carried out and the results obtained.
To determine the sustainability matters relevant for reporting purposes, the results of the assessments of each impact, risk and opportunity were reported within two separate matrices: one for impacts and the other for risks and opportunities5. This distinction has become necessary to give, in the case of impacts, a greater weight to significance than likelihood of occurrence, as required by ESRSstandards (ESRS 1 - General requirements, paragraph 45) for potential negative human rights impacts.
The materiality threshold has been defined, for both impacts and for risks and opportunities, in the medium-high and high materiality areas of these matrices.
The results of the materiality analysis, following approval by the members of the Strategic Committee and after assessment by the Control, Risks and Sustainability Committee, were subsequently presented to the Board of Directors for approval for reporting purposes.
The analysis carried out led to the definition of a list of 32 relevant impacts, risks and opportunities based on the financial or impact materiality perspectives, and to the development of a matrix highlighting their relevance across all the Topical Standards provided by the ESRS, except for “S3 Affected communities” with respect to which no impacts, risks or opportunities have emerged, above the materiality threshold, in relation to the sub-sub-topics identified by the standard, including the economic, social and cultural, civil and political rights of communities and the rights of indigenous people, confirming the 2024 analysis. The Group reserves the right to carry out, in the future, specific analyses to re-assess the analysis performed.
In line with the priorities of the Sustainability Plan, an entity-specific topic (not provided for by the sector-agnostic ESRS) emerged as material since the Group considered it as one of the strategic pillars on which several initiatives have been implemented for years: support for communities.
The results of the double materiality analysis confirmed the list of topics reported in the 2024 Sustainability Statement. The only changes relate to the inclusion of a theoretical reputational risk related to the possibility that warehouse management practices will not comply with the circular economy principles and the new provisions on the destruction of unsold goods, as well as the inclusion of two social impacts: a positive impact relating to the promotion and guarantee of social dialogue and the principles of freedom of association and collective bargaining, and a potential negative impact, referring to workers in the value chain, related to possible non-compliance with labour standards and the safeguarding of adequate working conditions.
In order to ensure the alignment of the analysis with regulatory developments and the business in which it operates, the Group plans to regularly update the double materiality analysis at least once a year.