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For the Moncler Group, quality has always been, and will continue to be a priority. In the search for excellence, the Group allows no compromises: from the choice of the finest materials to the precise manufacturing of garments, to the selection of the best suppliers trained and supported by specialised experts.

Product quality, safety and innovation are a focus of attention for the Moncler Group. Both Moncler and Stone Island thus have strict controls over the entire value chain. Each product is designed and manufactured under the direct, close supervision of Group experts. Both Brands manage the creative phase and the development of prototypes internally and use constantly-supervised third-party laboratories to produce finished products, as well as, for Moncler, its production sites in Italy and Romania.

Quality and safety are a priority for the Group right from the garment design and raw material purchase phase. The quality of the down, nylon, cotton and other raw materials used to produce both Brands’ garments, combined with constant research and experimentation, are fundamental to ensure an excellent final product. As a result, the Group carefully selects its suppliers and subjects its materials to both rigorous controls before they go into production and accurate checks on composition, chemical substances and physical-mechanical characteristics, essential to ensure the expected technical performance.

In particular, the Group contractually requires its production partners to operate in full compliance with the most restrictive international legislations on chemical substances and performance, including the European REACH regulation13, Chinese GB requirements14 and Japanese JIS requirements15.

Suppliers are contractually bound to comply with the instructions contained in the Compliance Specifications containing the main compliance requirements of both Brands for their suppliers and sub-suppliers, including dye houses, laundries and embroideries. The Specifications are updated periodically, taking into account international regulations and voluntary parameters and commitments made by Moncler and Stone Island. It includes the Group’s Product Restricted Substances List (PRSL) and Manufacturing Restricted Substances List (MRSL) and, for Moncler, the Manual of Performances for performance and physical-mechanical requirements.

In particular, the PRSL applies to materials, treatments and products, and includes not only the requirements of the most restrictive regulations of the producing and selling countries, but also other more stringent voluntary requirements in line with a precautionary approach.

The PRSL has been drafted, with the support and verification of consultants and testing and certification companies, taking into account the producing and selling countries, but also other more stringent voluntary requirements in line with a

precautionary approach.

The names of the relevant chemical substances and formulations, the Chemical Abstract Service (CAS) registry number, the analysis methods to be used and the reference parameters to comply with are reported. They also indicate the substances and target parameters on which suppliers are encouraged to improve and find alternatives.

The Group is aware of the importance of monitoring the chemicals used in the production process to prevent potential contamination of materials, products, water and sludge. This monitoring is governed by the Manufacturing Restricted Substances List (MRSL) which, together with the PRSL, sets out the list of substances that suppliers and sub-suppliers have to monitor during the various phases of production in order to anticipate and reduce the risk of possible critical issues relating to products, materials and the environment, and provide the basis for proper production method and root-cause analysis. The Group’s MRSL was defined taking into account the main industry standards (e.g. Zero Discharge of Hazardous Chemicals – ZDHC, to which Stone Island has adhered since 2019) and requires for further investigation and specific requirements.

The MRSL and PRSL apply to all levels of the supply chain involved in the production of materials and products. For parameters, substances, methods and detection limits, suppliers are required to refer to the MRSL and/or PRSL depending on the substrates analysed and considered.

The MRSL and PRSL govern more than 350 chemicals and are two important parts of the Group’s strategy aimed at continuing to reduce potential environmental impacts.

Suppliers and sub-suppliers, primarily those that manage wet processes, are encouraged proactively to develop a chemical management system through which to monitor and test, including through qualified third entities, chemical products, such as waste water and sludge, in addition to materials, components, products and treatments. This includes keeping the chemical inventory and documentation up to date, as well as implementing batch tracking and screening and/or testing of different chemical formulations at least seasonally, if not via sampling or during inspections. Suppliers must verify that concentrations of substances identified in any substrate ensure compliance with legal requirements or with those of the Group, if more restrictive, and investigate the source of any problems, taking the appropriate corrective actions.

Both Brands monitor compliance with the requirements based on a sampling procedure that identifies the samples to be tested, frequency and tests to be performed. Test activities, carried out seasonally, start at the materials research phase and continue with the prototyping and sampling phases, up to production.

Samples and substances to be tested are selected considering the type of materials (fabrics, leather,

etc.) involved, formulations used in the production process (e.g. colours, finishing agents, etc.), availability of documentation, frequency and quantity of use in the supply chain, particularities and sophistication of certain effects, etc.

Tests on components, water, chemical formulations and finished products are carried out through ISO 17025 accredited third-party testing laboratories and are performed by both suppliers and the Group.

Production accessories undergo further inspection to analyse their technical compatibility with fabrics and with the indicated garment care, such as the reaction with the detergents during washing, while for fabrics physical-mechanical properties such as water resistance, pilling, colour solidity, slippage of seams, tear resistance, breathability, etc., are checked. At Stone Island, special attention is paid to the garment dyeing process, and production accessories and fabrics are subjected to in-depth preliminary tests including compatibility with the treatment and the presence of impurities and other components that could result in anomalies in the dyeing phase in order to make, where necessary, changes and optimisations to the process itself.

The Moncler Group does not tolerate any compromises in terms of health and quality standards: if a product does not pass the tests, the purchasing process is stopped until the supplier demonstrates that it can provide a product that complies with the requirements.

In terms of technical quality in the product production process, during the supplier selection phase the experts at both Moncler and Stone Island’s quality management division carefully examine whether a partner has adequate skills and technologies that enable the production of garments in line with the required standards, and that can ensure constant and uniform quality levels. The experts then verify the progress of the process and compliance with the product quality standards on a weekly basis.

Before entering production, each model is subjected to various fittings, the purpose of which is to verify attention of each detail and alignment with the stylistic and model indications, and ensure maximum comfort and fit.

Lastly, all Moncler and Stone Island products undergo an in-depth final quality inspection before being placed on the market. These controls, through a structured process subject to a protocol, thoroughly check and ensure the aesthetics, characteristics, size, labelling and functionality of each of the Brands’ garments. In 2023 the department responsible for managing the quality of Moncler brand products obtained certification of its Quality Management System, in accordance with the ISO 9001:2015 standard, to ensure constant improvement within the company towards satisfaction of clients, the internal team and suppliers. Finally, in this last phase the Group implements and verifies a complex anti-counterfeiting protocol using the latest-generation technology.

NOTES

13 Registration, Evaluation, Authorisation and Restriction of Chemicals.

14 National Standard of the People’s Republic of China.

15 Japanese Industrial Standards.