For the Moncler Group, talking about quality also means talking about health and safety, respect for human rights, environmental protection and, in general, ethics in business conduct along the entire value chain. The continuous pursuit of social responsibility goals involves taking a commitment that extends well beyond its boundaries, embracing the entire supply chain.
SUPPLY CHAIN DUE DILIGENCE
To promote proper and responsible management of workers throughout the value chain, the Group has adopted an integrated due diligence system in line with the OECD (Organisation for Economic Co-operation and Development) guidelines, which includes, in addition to the definition of standards and policies that suppliers must adhere to, risk analysis processes, mitigation actions, third party compliance verification by specialised entities and, when necessary, remediation plans, as well as the availability of whistleblowing and grievance platforms.
THE GROUP’S POLICY SYSTEM
The Moncler Group has adopted specific policies in order to promote a responsible value chain in all the countries in which it operates, and to manage or mitigate theoretical risks and potential negative impacts.
The Codes of Ethics of the Moncler brand and the Stone Island brand encompass the set of values that both Brands recognise, share and promote, including with their partners. Employees and collaborators are required to act with honesty and integrity and to build relationships with stakeholders based on mutual trust, so that growth is guided by the principle of shared value. In particular, through the Codes, the Group requires its partners to make the same commitment and, among other requirements, not to knowingly enter into relationships of any kind, either directly or indirectly, with parties who in any way violate the rules on adequate labour standards, with particular, but not exclusive, reference to the fight against child labour and forced labour as well as the protection of health and safety.
The Group’s Supplier Code of Conduct sets out expectations for how partners should operate. It consists of six sections (Labour and Human Rights, which includes a prohibition on forced and child labour, Health and Safety, the Environment, Animal Health and Welfare, Product and Service Safety and Quality and Business Ethics) and contains the mandatory requirements that suppliers must comply with in order to begin or continue working with the Group.
The Group’s Human Rights Policy, which is an integral part of the Code of Ethics and is prepared with the technical support of the International Labour Organization (ILO), defines the principles underlying the Group's commitment to respecting and promoting fundamental human rights and preventing or mitigating any negative impact of its activities through an approach based on risk assessment criteria at all levels of its value chain.
All suppliers1, during the contractual phase, are required to sign the Code of Ethics, with its related Policies, and the Supplier Code of Conduct. By signing, suppliers commit to respecting its principles and ensuring that their own subcontractors comply with them, as well as displaying these documents in the workplace to make them easily accessible to workers.
RISK ASSESSMENT
The risk analysis is carried out using various tools and applies to the various entities within the value chain. It includes all the Moncler Group sites, existing and potential business relationships (e.g. mergers or acquisitions), potential and actual suppliers, sub-suppliers and their employees, including women, children, indigenous peoples and local communities, in any way connected to or affected by, directly or indirectly, the Group’s activities.
In particular, every year, the Group, with the technical support of a specialised and independent international partner, conducts a specific risk assessment of environmental impacts and human rights violations along the value chain. The analysis, carried out at country level, covers all stages of the production process. As a result of this project, the potential risk profile by geographical area for each of the main human rights was mapped, including decent wages, health and safety at work, discrimination in the workplace, child labour, forced labour, inadequate working hours, human trafficking, migrant workers, freedom of association and collective bargaining.
The theoretical risk assessment analysis confirmed that the services and production processes carried out by the Group at directly managed sites do not present a significant risk profile for any human rights violations, while those managed by the Group's direct suppliers and their supplychains are characterised by diversified levels of risk. In particular, the stages of the chain relating to cotton cultivation and the intermediate processing of the finished product might potentially be characterised by higher risk profiles than the other stages. For this reason, for years the Group has implemented structured monitoring and prevention processes aimed at mitigating these risks throughout the entire supply chain. Among the human rights analysed within the supply chain, ensuring decent wages has emerged as one potentially at risk. The Group is committed to monitoring this matter through specific analyses of the living wage. Lastly, the country-level analysis revealed the presence of higher potential risks in Southeast Asian countries, where the Group’s supply chain has a very limited presence.
The Operations & Supply Chain and Purchasing & Procurement teams are periodically involved in training activities in which the results of human rights risk assessment activities along the supply chain are shared.
PREVENTION AND MITIGATION OF IMPACTS
The risk analysis process is essential to prevent negative impacts and define mitigation actions, such as prioritising ethical-social and environmental audit plans and integrating the results into the selection process for new suppliers.
The ethical, social and environmental audits are carried out both on potential suppliers, to assess their suitability for establishing a business relationship with the Group, and on existing suppliers, to verify ongoing compliance with applicable laws and the principles outlined in the corporate Codes. For the latter, any violation of the Group’s requirements constitutes a contractual breach, granting Moncler and Stone Island the right to request the immediate termination of the existing contract in the event of serious non-compliance or, in less severe cases, the implementation of a timely corrective action plan.
In order to ensure maximum impartiality, audits are regularly entrusted to qualified, accredited, independent third-party entities with recognised expertise. The audits, regarding social aspects, focus on verifying respect for fundamental human and labour rights, with particular attention to the issues of forced labour, child labour, freedom of association, working hours, guaranteed minimum wage, and, not least, health and safety.
The Group’s proprietary checklist, used to perform audits, is regularly updated to take account of changes in reference standards and local and international regulations. The Group defines, manages and updates an audit plan which covers all façon manufacturers and suppliers of finished products, aiming for them to be audited at least once every three years. In light of the new 2026-2028 Sustainability Plan, the Group intends to progressively strengthen this approach, increasing the frequency of controls according to a risk-based criterion, aiming to achieve, in the next few years, biennial audits for “critical suppliers” and annual audits for of high-risk suppliers2. During the three-year period 2023-2025, Moncler carried out 978 ethical, social and environmental audits (on both suppliers and subcontractors). These activities covered 100% of the volumes assigned to outerwear façon manufacturers, providers of other outerwear processing (dyeing, printing, embroidery, etc.), suppliers of shoes and bags, knitwear and soft accessories; 83% of the volumes assigned to tanneries and 74% of modelling and prototyping suppliers.
Stone Island, which has an ethical, social and environmental audit plan to ensure the highest coverage of suppliers in its supply chain, also carried out 464 ethical, social and environmental audits during the same three-year period (on both suppliers and sub-suppliers), equal to around 100% of the value of orders assigned to finished product suppliers and façon manufacturers.
Moreover, in 2025, both Brands also conducted ethical, social and environmental audits on their main raw materials suppliers representing 76% of total material purchases for Moncler and 87% for Stone Island. In particular, with regard to the down supply chain, 100% of Moncler’s suppliers were also found to comply with the new human rights and environmental compliance modules officially included in the DIST Protocol. Those environmental and social modules were also applied to the verification processes of all of Stone Island’s RDS-certified down suppliers. Lastly, ethical, social and environmental audits also continued to be carried out on strategic service suppliers (logistic platforms and external quality control platforms), for which no material non-compliance was identified.
These verification activities were accompanied by audits of animal welfare and down traceability.
The Group, again with the goal of preventing impacts on suppliers’ workers and, at the same time, the potential risks for Moncler and Stone Island, has also applied since 2024 a selection procedure for new suppliers and sub-suppliers. The evaluation of a new supplier involves an on-site visit carried out by the quality team to assess the supplier’s alignment with the Group’s quality standards and to report any observable social and environmental critical issues. After this technical analysis, the evaluation process for new façon manufacturers and new suppliers of finished products involves a documentary audit of the compliance and financial aspects of the counterparty and the performance of a preliminary ethical, social and environmental audit by a third party. For raw material suppliers, meanwhile, the process requires the filling in of an environmental and social assessment questionnaire supported by documentary evidence and subsequently, if critical issues arise in the responses, an on-site audit.
The Group thus commits to not include in its supply chain companies that do not comply with the Group's quality standards and basic ethical, social and environmental principles.
The results of the audit activities, including the prior audits, are regularly shared by the Sustainability and Internal Audit Functions with the Operations & Supply Chain and Purchasing & Procurement teams. This ongoing dialogue enables the management of relationships with suppliers to be reviewed, also taking into account potential risks and impacts on workers in the supply chain.
Over the years, following a risk-based approach, the Group has progressively strengthened its supplier and sub-suppliers monitoring system by complementing traditional audits with additional measures. These include half-yearly documentary checks on tax, social security and corporate compliance; on-site visits also conducted outside working hours; energy consumption controls to identify any production activities carried out at night; analysis of production capacity; and inventories of materials and finished products at the laboratories.
With reference to wage practices, which is another matter being addressed in the fashion industry, in the Supplier Code of Conduct and in the Human Rights Policy, the Group recognises the importance of guaranteeing wages that are aligned with the law or binding collective agreements in force in the countries where it operates and, in any case, adapted to the cost of living, the basic needs of employees, discretionary profit, market benchmarks and the type of professional services. The Group requires its suppliers to provide to the workforce a fair level of compensation and career development that reflects their knowledge, skills, abilities and professional experience, as well as benefits, salary and non-salary incentives.
Like the Group, suppliers are expected to both provide all the benefits required by the law, including but not limited to social security, parental leave, annual holidays and calendar holidays, and engage in regular social dialogue on compensation issues. In addition, all suppliers are required to full cover taxes and other recruiting and hiring costs for workers, including migrant workers, temporary workers and fixed-term contracts.
Since 2021, the Group has carried out, with the support of a third party, specific analyses of the living wage at both its corporate offices and at its suppliers. At the end of 2025, the Group reached its target of evaluating and involving 100% of the “critical suppliers” in a living wage analysis.
ADOPTION OF CORRECTIVE OR REMEDIAL MEASURES
If audit activities reveal violations of applicable laws or principles set out in the Group’s Codes and Policies, the Company requires the supplier to implement appropriate actions to resolve the non-compliance.
Notwithstanding the zero-tolerance approach for major breaches, for which the Group reserves the right to terminate immediately the existing contractual relationship with the supplier, both Brands are committed to supporting their supply chain in raising awareness and driving continuous improvement, requiring the implementation of corrective actions where needed. Following each audit, an improvement plan is issued and its implementation is then verified. The Group undertakes to proactively support all suppliers in implementing the agreed corrective actions.
In order to verify that corrective measures are effectively implemented by the agreed deadline, the Group carries out both on-site and documentary follow-up audits.
With regard to the 507 audits carried out on ethical and social aspects in 2025, at year-end more than 94% of these were in line with the highest Group’s social and environmental standards (more than 90% including “critical suppliers”). Collaboration was ended with around 2% of them (10 suppliers), and the remaining 4% turned out to have non-compliances at the end of 2025, as the audit activity took place just before the last months of the year and not all the actions aimed at remediating the non-compliances had yet been closed.
In 2025, with particular reference to social aspects, 89 of the 507 audits found non-compliances and the relative improvement plan was issued. The main areas of non-compliance related to occupational health and safety (79%) and, in 17% of cases, aspects relating to management of employment relationships (non-compliance relating to pay and salary (8%), working hours (5%) and employment contract management (4%)), and, in only 4% of cases, human rights issues. For the least critical non-compliances, it was agreed with the suppliers to promptly implement a resolution plan, while in the most critical cases, the collaboration with the supplier was terminated.
Finally, the Group examines each situation to assess whether any non-compliance identified has resulted in negative impacts on workers; in the event of proven negative impacts, the Group verifies whether or not these fall within the scope of its responsibility by assessing their correlation with the performance of its activities. If such a correlation exists, the Group takes measures to remedy the impacts on workers in the value chain, collaborating, where necessary, with the competent authorities at national and international level and with its suppliers and partners to adequately address these situations. The Group also expects suppliers and business partners to implement mitigation and remediation measures for human rights violations in their activities, integrating these obligations into their contracts.
The due diligence process has contributed to strengthen over time the awareness and culture of human rights, as well as the risks associated with them, both within the Company and along the supply chain. The actions taken have proven their effectiveness over time, leading to the selection of suppliers with progressively lower risk and demonstrating that non-compliances, solved thanks to the improvement plans implemented during the three-year audit cycles, do not recur in subsequent audits.
FAIR WAGE PRACTICES ALONG THE VALUE CHAIN
Moncler partners with the Fair Wage Network, an independent organisation dedicated to progressing fair wage practices across global supply chains. The methodology adopted involves collaboration with companies and suppliers to assess wage practices by administering questionnaires to be completed by both workers and managers, in order to identify any problems and suggest improvement actions.
The Fair Wage Network assessment methodology is structured around 12 aspects, covering the entire spectrum of wage indicators: the living wage is therefore only one of the dimensions analysed, with other aspects and variables of the wages practices and pay systems being evaluated (such as wage negotiation with workers’ representatives through collective bargaining, the presence of grievance mechanisms for complaints on remuneration issues, etc.). Another area of the analysis involves comparing the results of the assessment with sector and country benchmarks.
The implementation of this analysis and the gradual extension to other Group suppliers have been assessed and prioritised on the basis of the risk profile associated with the geographical location of the supplier and other factors, such as the presence of collective labour agreements, which ensure dialogue and respect for social and environmental aspects. In this regard, over 70% of the Moncler Group’s suppliers are located in Italy and are covered by collective bargaining agreements.
At the end of 2025, the Group reached its target of evaluating and involving 100% of the “critical suppliers” in a living wage analysis. The analysis, which in the last three years has involved more than 16,000 workers of the Group's suppliers, confirmed that all of these workers receive remuneration in line with or above the local minimum wage applicable under applicable regulations. In particular, it was found that more than 85% of the workers involved in the assessment receive a salary in line with the specific living wage calculated for the reference country (where possible, the Region) and parameterized according to specific indicators for that country, such as the average fertility rate and the average number of people per household who receive an income from work.
In general, the Group is committed to work with all players in its supply chain, specialised associations and other strategic partners to increase awareness and understanding of the issue of fair wages.
1 Approximately 95% of significant Group contracts include compliance with the Brands’ Code of Ethics.
2 Includes façon manufacturers and finished products suppliers located in high-risk countries, identified using the proprietary methodology of an international partner specialised in ESG topics and through media monitoring activities.