MATERIALITY ANALYSIS

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 in line with its business strategy and business impacts, identifying and managing risks and opportunities and defining the contents of the Consolidated Non-Financial Statement according to the Global Reporting Initiative (GRI) international reporting standard.

In keeping with the requirements of 2021 GRI Universal Standards, also in 2023 the Group continued to adopt a methodological approach in conducting the materiality analysis, which includes the concept of due diligence and strengthens that of impact, to offer a complete picture of business risks and creation of long-term value. In particular, the new GRI 3 – Material Topics 2021 emphasises the need for organisations to identify the impacts that the organisation has or could have on the economy, environment and people, including on human rights, which in turn may indicate their (negative or positive) contribution to sustainable development, considering the entire value chain.

The materiality analysis takes into account both the areas provided for in Legislative Decree 254/2016 and the characteristic aspects of the industry in which the Group operates, to the extent necessary to ensure an understanding of the Group’s activities, performance, results and impact generated by the Company itself.

According to this approach, by considering the Moncler Group’s context, activities and business relationships, 18 material⁹ topics have been identified. These topics reflect the organisation’s most significant actual and potential impacts on aspects such as the economy, environment and individuals, including impacts on human rights (impact materiality).

The analysis, which since 2015 has been carried out regularly by the Sustainability Unit with the support of a specialised firm, also in 2023 consisted in a structured process involving external stakeholders with sustainability expertise, the management of both Brands and the Sustainability Unit as experts in the various areas of competence assessed. The materiality analysis process has been divided into four phases, in line with the requirements of GRI 3 – Material Topics 2021:

• understanding the context through an analysis of the Group’s activities, business relationships, the sustainability context in which they take place and the relevant stakeholders, with the aim of collecting the information necessary to identify actual and potential impacts. In addition to the internal documentation, a comparison with the reference sector was made;

• identification of the nature of actual and potential impacts, negative and positive, short- and long-term, predictable and unpredictable, reversible and irreversible, on the economy, environment and individuals, including impacts on human rights, arising from the organisation’s activities and business relationships analysed in the previous phase (inside-out perspective). The impacts were identified starting from the process carried out in 2022 through the analysis of corporate documentation (Code of Ethics, Annual Financial Report, Strategic Plan, as well as the results of the risk assessment carried out by the Internal Audit function), external literature on scenario changes¹⁰, questionnaires by sustainability rating companies, comparison with the sector, media and internet research and multi-stakeholder standards/initiatives¹¹ and dialogue with stakeholders, including investors, during periodic meetings;

• assessment of the significance of the impacts identified through a quantitative and qualitative analysis through one-to-one interviews with a panel of external stakeholders, starting with the assessments gathered during interviews with members of the top management of both Brands, carried out in 2022 and confirmed in 2023, who were asked to assess the combination of the severity of the potential impact and the residual likelihood of occurrence, i.e. net of the activities implemented or planned by the Group to manage the impacts.

The most significant impacts and the related material topics were subsequently submitted to the Board of Directors, following the assessment by the Control, Risks and Sustainability Committee, for approval for reporting purposes.

This update led to the definition of a list of 18 material topics for the Moncler Group, attributable to each of the five strategic priorities of the 2020-2025 Sustainability Plan and listed in alphabetical order.

Compared to the list of topics in the 2022 Non-Financial Consolidated Statement, the only change made following the materiality analysis carried out in 2023 relates to the topic of ‘waste and end-of-life products’ which has been divided, considering end-of-life topic within the topic ‘innovation, circular economy and “preferred” materials’ in line with the approach defined by the new European regulations on eco-design (Ecodesign for Sustainable Products Regulation – ESPR).

With the aim to continuously improve the process, even if clear official guidelines are not yet available, in the first half of 2023, the Group finalised a pilot project adopting an innovative approach, the so called ‘double materiality‘.