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For Moncler, quality has always been and will continue to be a priority. There can be no compromise in the pursuit of excellence: from the choice of the finest materials, through the precise manufacture of its garments, to the selection of the best suppliers trained and supported by specialized experts. 
Product quality and safety are at the centre of Moncler’s focus. For this reason, it implements strict controls along the entire value chain. All Moncler products are designed and manufactured under the Company’s direct and close supervision. The Group manages the creative stage, the development of prototypes, and the purchase of raw materials internally, while it closely oversees the manufacture of final products at its production site in Romania or outsourced to external suppliers.

Quality and safety are priorities for the Group right from the phase of designing garments and purchasing raw materials. The quality of the down, nylon, fabrics, and other raw materials used to produce Moncler garments is crucial to guarantee the excellence of the final product. For this reason, Moncler selects its suppliers very carefully, and all materials are subject both to strict testing before production and accurate assessments on their composition, check for chemicals, and test their physical and mechanical qualities so as to ensure the desired technical performance.

Moncler contractually requires all its production partners to perform in full compliance with the most stringent international regulations on chemical substances and performance, including the European Union’s REACH7 regulation, China’s GB8 standards, and the Japanese JIS standards9.

Suppliers are also bound by contract to satisfy Moncler’s Compliance Specifications, which contain the main compliance requirements for suppliers and their sub-contractors, including dyeworks, cleaners, and embroidery mills. The specifications are periodically updated, in light of international regulations and parameters and commitments adopted on a voluntary basis by Moncler. They contain two sections: the first, on chemicals, includes the Product Restricted Substances List (PRSL) and the Manufacturing Restricted Substances List (MRSL), while the second consists of the Manual of Performances and concerns physical-mechanical performance standards. The PRSL, whose latest revision was completed in 2020, applies to materials, treatments, and products and includes the most restrictive standards of the countries where Moncler products are manufactured and sold. Drawn up with the support and assessment from consultants and testing and certification companies, the PRSL takes into account the main industry standards (including the American Apparel and Footwear Association – AAFA and the Camera Nazionale della Moda Italiana), the certification models of independent bodies, and the specificities of Moncler products.

The PRSL reports the names of the relevant chemical substances and formulations, the CAS (Chemical Abstract Service) registry number, the analysis methods to be considered and reference parameters to be comply with. They also indicate the substances and target parameters for which suppliers are encouraged to make improvements or find viable alternatives on.

In addition to the legally required parameters, the PRSL includes several voluntary standards that are even more restrictive, in line with a precautionary approach.

Aware of how important it is to monitor the use of chemicals in the production process to prevent contamination of materials, products, wastewater, and sludge, in 2020 Moncler drew up a Manufacturing Restricted Substances List (MRSL) which, along with the PRSL, defines the list of substances that suppliers and subcontractors have to monitor during the various production phases in order to anticipate and reduce the risk of product-, material-, and environment-related problems and set the basis for a correct production method and root-cause analysis.

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 considered.

The MRSL and PRSL rule the use of more than 350 chemicals and are two important tools in Moncler’s strategy to keep reducing its environmental impact.

Suppliers and sub-contractors, especially those involved in wet processing, are encouraged to proactively develop a chemical management system through which they can monitor and test chemicals, wastewater and sludge, as well as materials, components, products and treatments. This includes keeping updated chemical inventories and documentation, in addition to implementing batch traceability and the screening and/or testing of different chemical formulations at least seasonally, if not through sample checks or during on-site inspections.

The supplier must verify that the concentrations of substances detected in any substrate comply with the law or with Moncler’s standards, if more restrictive, and to deepen the source of any problem and take appropriate corrective measures.

Moncler monitors compliance with standards through a sample check procedure that defines the samples to be tested, the frequency, and the type of tests. Testing is carried out every season, starting with the materials selection phase and continuing through prototyping, sample making, and production.

The samples and substances to be tested are selected considering the type of materials (fabrics, leathers, etc.), the formulations used in the production process (e.g. dyes and finishing agents), the documents

availability, the frequency and quantity of use in the supply chain, the singularity and distinctiveness of a given effect, and so forth.

Tests on components, water, chemical formulations, and finished products are conducted through independent, ISO 17025 accredited laboratories and are carried out by both the suppliers and Moncler.

The accessories used in production are subject to additional testing to ensure their technical compatibility with fabrics and garment care (for example, their reaction with washing detergents). Fabrics are tested for their physical-mechanical properties, such as resistance to water, pilling, colour fastness, seam slippage, tearing strength, breathability, etc.

Moncler accepts no compromise when it comes to safety and quality. If materials do not pass the tests, the purchasing process is suspended until the supplier can demonstrate it is able to deliver a product that complies with all requirements.

Regarding technical quality, before selecting a production supplier, the experts from Moncler’s quality assurance division will first verify that the potential partner has the technological capacity and is adequately equipped to produce garments that meet all the standards required by the Brand, and that it can ensure consistent and reliable levels of quality. The experts will then perform weekly checks to verify the status of the supply process and compliance with the product quality standards.

Before starting the production process, every model undergoes a series of fittings to verify every detail and consistency with design and model specifications, and to ensure maximum comfort and wearability.

Finally, prior to sale, all garments produced are subject to a final stringent quality inspection. This inspection, with a structured and recorded process, checks and guarantees the aesthetic detail, characteristics, sizing, labelling and functionality of each garment. In this final stage, the anti-counterfeiting protocol is checked and activated using sophisticated latest-generation technology.

Since 2018, through major investments in technology, Moncler has expanded its Piacenza hub where, in addition to logistics activities, other services including quality control of finished products and part of the after-sales services are carried out. The expansion of the facility is part of an important project that the Company implemented in order to be faster and more efficient in terms of time-to-market and service to clients.

NOTE

7 Registration, Evaluation, Authorisation and Restriction of Chemicals.

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

9 Japanese Industrial Standards.

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