PRODUCT AND INNOVATION

Reviewing the various stages of the product life cycle with a circular economy perspective is increasingly becoming a focal point in order to minimise the resources used, extend garment lifespan and promote material recovery.
 
Use of “preferred” materials¹
 
For several years, the Group has been introducing products made from “preferred” materials into its collections. “Preferred” are those that aim to have a lower impact compared to the conventional solutions used by the Moncler Group, such as materials that are recycled, organic, or certified according to specific standards.
 
The journey began in 2019 with the bio-based down jacket, designed with plant-based and natural-origin materials. It continued with the range of garments made from recycled fabrics in the Moncler Grenoble collection, culminating in January 2021 with the launch of a selection of “Born To Protect” jackets, made entirely from materials with a lower impact compared to those conventionally used by the Brand. In 2022, the Moncler Born to Protect range was expanded to become a total look, including, in addition to jackets, various types of garments and accessories, all made from fabrics and components with low environmental impact, certified according to specific sustainability standards. In 2023, the Fall/Winter collection continued to evolve: in addition to these fabrics and components, recycled R•DIST down, specifically DIST down recycled through an innovative mechanical process, was used in some down jackets.
Since 2023, in addition to focusing on specific projects, the Moncler Group, in line with the commitments made in the 2020-2025 Sustainability Plan, and on the basis of the Raw Material Manual, has progressively included raw materials with a lower impact than the conventional materials used by the Group in the Moncler and Stone Island collections, as indicated through specific hangtags on products. Through the collaboration of its Design, Fabric Research and Development, Operations and Merchandising teams, and with the involvement of the supply chain, the Group aims to integrate over 50% yarns and fabrics with a lower impact than the conventional solutions used by the Group into its collections by 2025.
The work and commitment of the teams involved led to significant progress: in 2024, over 43% of the yarns and fabrics used in the Fall/Winter (FW) and Spring/Summer (SS) collections of Moncler and Stone Island were lower impact compared to the conventional solutions used by the Group. This result was achieved by adopting over 50% recycled nylon, over 43% recycled polyester, approximately 37% cotton from organic or recycled practices, about 70% certified wool (such as the Responsible Wool Standard, Nativa or Sustainawool) and 100% certified alpaca (Responsible Alpaca Standard), and 100% mohair certified (Responsible Mohair Standard).
 
Since 2021, Stone Island, in addition to materials, has also integrated new treatments into its collection, maintaining the technical and performance aspect of its products but with lower environmental impacts, such as reduced-water consumption treatments compared to the conventional solutions in the Soft Shell e.dye® waterless colour system™.

The assessment of the environmental impact of materials and components is supported by Life Cycle Assessment (LCA) analyses that quantify the potential environmental impacts. These analyses, which are based on a structured methodology and in line with ISO 14040, 14044 and 14067 and are certified by an independent, external third-party, are a useful tool for various considerations on the sustainability of the products, processes and materials used. To date, about 80% of the Group’s products have been assessed using the LCA methodology.
 
Since 2023, a dedicated training programme has been created in order to continue to spread sustainability culture and provide technical knowledge to Sales Assistants. The programme aims to increase knowledge of good environmental and social practices and the characteristics, certifications and corporate objectives of “preferred” materials and

components used in the collections. This program involves the entire sales force.
 
Adoption of recycling solutions
 

One of the phases of the circular economy model to which the Group has devoted particular attention in recent years is the reuse of production scrap materials through more efficient resource management. To this end, the Group actively works, at its production sites and with various suppliers, to reduce scrap and waste, and consequently textile waste, by optimising the use and cutting of fabrics, while implementing the infrastructure needed to recycle and maintain the intrinsic value of unavoidable scrap. Through recycling networks, production scrap can be turned into recycled raw materials, driving the production of new materials and contributing to the promotion of a circular economy.
 
Since 2022, these activities have led to the inclusion in the recycling process of all nylon production scrap generated at the Moncler Group’s direct sites in Italy and Romania. Since 2023, the project has also been extended to Moncler brand’s outerwear production network, leading to the recycling of more than 55% of total nylon scrap, also in 2024. This was made possible thanks to the collaboration of the Moncler Sustainable Innovation Department, which set the scope, parameters and methods of recycling, and the Operations and Supply Chain Department, which implemented the Nylon Scrap Management Process.
According to the procedure, during the year nylon scraps were classified and collected by line operators into specific recycling categories, weighed, recorded, stored and sent to the recycler. In order to monitor the correct assignment of nylon scraps to the respective recycling category, the Group carried out physical and process checks at the sites, as well as differential scanning calorimetry analyses performed on a sample basis at third-party laboratories. At the recycler’s site, nylon scrap may be subject to unravelling or to shredding, melting, cooling, extrusion, and finally cutting the material into chips to be used as a “secondary raw material”.
 

At Stone Island, the project, renamed Raw Beauty in 2024, continued, with the aim of recovering cotton scraps generated by suppliers during production stages of garment, subjecting them to a mechanical recycling process. This process results in yarns containing at least 50% recycled cotton, which are used to make 12 models, including outerwear, trousers, sweatshirts, t-shirts and sweaters, for the 2025 winter collection. Furthermore, the finished garments were not treated with dyeing processes, in order to fully enhance the intrinsic qualities of the recycled cotton. The entire process was verified by a third-party organisation that validated the recycled content of the materials and their origin from production scraps.
 

In 2024, Moncler, with the aim of reducing production waste, enhanced the “smart factory” in Trebaseleghe (Padua) by introducing a filtering system designed to optimise the management of processing scraps. This system allows for the collection of scattered down, subjecting it to a filtration process that removes impurities and making it reusable.
Thanks to constant collaboration with its suppliers to identify innovative solutions from a circular economy perspective for the business, Moncler has, since 2021, combined its expertise in down with that of a supplier specialised in recycling technologies, resulting in a machine that through an innovative mechanical process, allows to the recycling of DIST down. In 2023 the patented process was finalised in Italy and launched at the international level. Over the last three years, this process has led to the recycling of approximately 5 tonnes of down present in Moncler garments, certified according to the R•DIST module of the DIST protocol, which sets the requirements for recycled down certification.
 

The Moncler Group continues to work on refining the system for selecting and recycling garments that cannot be sold in collaboration with several international companies that are leaders in fabric reuse and recycling practices. Depending

on the category, products are recycled and put to various uses such as the creation of new yarns or components for jackets, the production of furnishings and objects often used as visual merchandising for stores. In this direction, in 2022 the Moncler Group joined the Re.Crea consortium, under the coordination of the Camera Nazionale della Moda Italiana. The consortium was founded to organise the management of textile and fashion products at end of life and to promote research and development of innovative recycling solutions.
 

The Group’s commercial strategy is based on the principle of scarcity and, from an operational point of view, on effective inventory management, translating into efficient production planning and the right quantities at the right time and in the right place in order to avoid excessive inventories. This approach, combined with a high level of sell-through, allows to limit the amount of unsold products. The “seasonal” garments, specifically those that are offered for one season only (which differ from carry-overs, which can be reoffered for several seasons) remain unsold, they are placed in the outlet channel operated by the Company or marketed through “Family and Friends” sales initiatives. In collaboration with some non-governmental organisations (NGOs), some of them are donated to people in difficult situations through the Warmly Moncler programme, designed to protect people from the cold. Lastly, the limited number of remaining products are all recycled through innovative and also experimental processes.
 

Ability to last over time
 

Some of the key principles of the circular economy, such as garments’ ability to last over time, have always been a part of Moncler’s DNA. The high quality of its products and the way they stand above fashion and trends ensure that they have a very long average life. This characteristic was the foundation of the Extra-Life project, a service aimed at giving Moncler jackets a second life by making specific repairs, thanks to an efficient personalised service that can also carry out repairs on damaged fabrics, thus extending the product life. Since 2022, the project has been active in all the Regions where Moncler operates. This initiative is part of a process of increasing clients’ awareness of how they can contribute to avoiding the environmental impact associated with the production, purchase and disposal of new garments.
 

In 2024, through this initiative and the other services of the after-sales channel, the Moncler brand handled more than 41,000 requests for repairs of garments used by its clients, equal to about 40 tonnes, 89% of which were fulfilled. All garments that cannot be repaired or returned to clients are recycled.
 

In terms of how clients should use products in order to increase their ability to last over time, information has also been included on product labels and in the appropriate “composition and care” section of the site that provides guidance on garment care and washing.
 
Search for innovative solutions
 

The Group’s innovation journey is based on an open innovation model that encourages the exploration and development of ideas, solutions, skills, processes and materials, in collaboration with universities, innovation centres and suppliers of different sectors, as well as accelerator hubs or research bodies.
To this end, specific programs with national and international start-ups, institutes, accelerators and universities and constant collaboration with their suppliers are included, in order to identify innovative solutions for the business.
The Sustainable Innovation team, among its various activities, works closely with the Operations and Supply Chain teams in identifying partners in the various Regions that can guarantee the most innovative, cutting-edge techniques for recycling the main product categories.
In addition, with the Sustainability Unit, it has set up working groups with external organisations to identify circularity solutions aimed at reducing the impact of materials.