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The circular economy is one of the priorities of Moncler’s sustainability strategy. It is an approach that integrates innovation and sustainability from the ideas stage of garments to the end of their life. The challenge is to minimize the resources used for production, increase the use of low environmental impact resources, extend product life, and promote the reuse of materials.

To implement a circular economy model it is necessary to integrate sustainability into products and processes by taking action in different areas. These range from choosing the most eco-sustainable materials, to initiatives to extend product use and life, such as repair services or “second life” projects, to garment design that facilitates recovery and recycling, to production, distribution and packaging processes with low environmental impact. These are all matters that require an aptitude for innovation, to experiment with new solutions and collaborate with all the players in the supply chain.
Some of the key principles of the circular economy, such as garment durability, have always been part of Moncler’s DNA. The high quality and timeliness of Moncler products guarantee they have a very long average life. This is the foundation of the Extra Life project, a service aimed at giving a second life to products through specific repairs and customizing garments with patches or specially selected fabrics, which will be extended worldwide by the end of 2022. In addition, the down used, the heart of every single jacket, is an excellent example of how Moncler supports the circular economy. In fact, down comes exclusively from geese in the food chain, of which it is a by-product that if not used would simply be disposed. In 2021 Moncler will start recycling down certified under DIST from its own jackets, using an innovative mechanical process that uses about 70% less water than traditional

down recycling processes. Since 2019, Moncler has started introducing sustainable materials in its collections, such as BIO-based, carbon neutral down jacket made with plant-based fabrics whose emissions have been offset through REDD+ certified projects, a range of recycled garments within the Moncler Grenoble collection, and getting to the launch, in January 2021, of a selection of “Born To Protect” jackets made entirely of recycled materials within the Moncler Man, Woman, and Enfant collections.

Through its Life Cycle Assessment analyses, Moncler quantifies the potential impact associated with products, starting with the high selling product, fabrics, and raw materials. These analyses, which are based on a structured methodology and in line with ISO 14067, represent a useful tool for considerations the Company is carrying out on the sustainability of products, processes and materials used. On that note, in 2020 Moncler drew up a set of Guidelines on sustainable materials which summarize the criteria and thresholds for guiding the choice of materials, accessories, and manufacturing processes for Moncler products. The main raw materials used by Moncler are fabrics, yarns and down. The Company works continuously with its suppliers, requiring that production processes be structured so as to optimize material usage and cutting, thereby avoiding waste. Furthermore, in relation to raw materials for products, Moncler is always looking for innovative solutions with low environmental impact. The sourcing of sustainable or recycled materials plays an important role in Moncler’s approach to circularity, in particular, the Company has committed to use 50% sustainable nylon by 2025. Nylon is one of the key raw materials for Moncler garments and accounts for 16% of the greenhouse gas emissions from all materials used in production.

The analysis of raw materials has represented an incentive to strengthen the Company’s commitment towards biodiversity preservation also by virtue of the commitments undertaken by Moncler when it joined The Fashion Pact. For this purpose, the Company has started to delineate a specific biodiversity strategy, outlining a series of objectives for using natural resources more responsibly and reducing the impact of the supply chain on ecosystems.

Another area on which Moncler is focusing its attention is production scrap management, which pursues two objectives: to reduce waste as much as possible through the use of software as CAD, that provide support during several production stages, from sketching and design to sizing and placement, allowing time optimization and waste reduction; and to collect and reuse the scraps produced during the manufacturing process. Moncler has set a target of recycling 80% of nylon scraps by 2023.

Moncler’s commercial strategy is based on the principle of scarcity and, from an operational point of view, on effective warehouse management. This translates into efficient production planning, with the right quantities at the right time and in the right place, in order to avoid excessive inventory. Regarding products that can no longer be sold, Moncler is implementing and continuing to test, through innovative processes, recovery and recycling solutions as well as donating to populations in need in collaboration with NGOs.

“BORN TO PROTECT”: A SELECTION OF JACKETS MADE ENTIRELY OF SUSTAINABLE MATERIALS

In January 2021 Moncler reaffirmed its commitment to the environment by announcing the launch of a range of jackets entirely made of sustainable materials for men, women and children, the outcome of the constant search for innovative solutions with low environmental impact.

A physical realization of the Strategic Sustainability Plan Moncler Born to Protect, the jackets illustrate the Company’s vision for a circular economy and represent, in a tangible way, three of the plan’s five pillars:

• climate action: every material in the Moncler Born to Protect jackets is

sustainable. Fabrics and accessories, with the exception of down, are recycled ensuring a reduction of roughly 40% of CO2 emissions;

• circular economy: fabrics and accessories including zips and buttons are made of Econyl® nylon, a regenerated nylon derived from ocean and land-based waste, ensuring the re-use of materials wherever possible;

fair sourcing: as for all Moncler apparel, down is 100% DIST (Down Integrity System and Traceability) certified, ensuring traceability and high farming standards through a scientific approach all along the

supply chain. The down, derived exclusively from geese farmed for the purpose of meat, is a by-product of the food chain.

The research for sustainable materials has also been extended to packaging: all paper is sourced from responsibly managed forests, and additionally to this, the shopping bags and gift boxes also include recycled paper.

NOTES

1 Includes components of raw materials that are not particularly relevant in terms of volume such as silk, rayon, etc.