195 ACT ON CLIMATE & NATURE194 ACT ON CLIMATE & NATURE MONCLER GROUP 2022
years, to a reduction of CO2 emissions in line with the commitments made to the SBT initiative.
In 2022 the logistics emissions reporting scope was further extended to include additional flows, such as the returns from the e-commerce channel in the EMEA and Americas Regions and ship- ments of packaging from suppliers to local warehouses.
The Group s logistics emissions amounted to approximately 27,400 tonnes of CO2e18 in 2022.
In 2022 capital goods-related emissions accounted for 6% of the total. Such emissions mainly relate to the renovation and ex- pansion of corporate and production sites and stores, as well as the purchase of machinery by the Group. In particular, the 8% increase in these emissions compared with 2021 is due to the expansion of the retail network of both Moncler and Stone Island and the begin- ning of the expansion works at the plant in Romania.
STRATEGIC AREAS FOR SCOPE 3 EMISSIONS MITIGATION In line with the commitment set in the Science-Based Targets to reduce scope 319 CO2e emissions per product unit sold by 52% by 2030 from a 2021 base year, the Moncler Group is imple- menting various initiatives across the following strategic areas:
the progressive introduction of lower impact materials in the collections
the decarbonisation of the supply chain through energy ef- ficiency measures and the adoption of energy from renew- able sources
the optimisation and efficiency improvement of the logis- tics system
the development and implementation of initiatives to pro- mote sustainable mobility among employees.
LOWER IMPACT MATERIALS Among the raw materials used, cotton, the most important materi- al for the Moncler Group in terms of purchased volumes, is the main source of CO2 emissions, followed by animal fibres and synthetic materials, such as nylon and polyester.
In order to achieve its climate targets more rapidly, also in 2022 the Group implemented a series of initiatives to promote the introduction of products made from lower-impact raw materials in- to its new collections. The Moncler Group has taken steps to review its supply choices, for example by replacing virgin materials with al- ternatives of recycled, organic or regenerative origin that guarantee a reduction in terms of emissions generated.
In 2022 the Moncler Group identified a set of intermediate targets to be achieved by 2025 (see also pages 74-75; 164). In particular, the Moncler Group s commitments on materials aim to use:
50% recycled nylon 50% lower-impact cotton 70% wool certified Responsible Wool Standard (RWS).
The objectives listed above contribute to achieve the target of more than 50% of yarns and fabrics from lower impact materials in all col- lections.
In addition, in line with the commitments made, in 2020 Mon- cler drew up the Guidelines for sustainable materials, a protocol that summarises the criteria and thresholds for guiding the choice of materials, accessories and production processes for low-impact products. The protocol will see an evolution with the Raw Materials Manual in 2023. The Group aims to have 100% of its strategic raw materials in line with the Raw Materials Manual by 2024.
The Moncler Group is also committed to reduce the con- sumption of packaging materials and to research and apply lower impact alternatives. In recent years, the Group has launched a se- ries of programmes for improving packaging design focused main- ly on recyclability, re-usability and durability as well as on reducing the materials used. See also pages 75; 166-171.
Packaging for the end clients is already made from lower im- pact materials.
DECARBONISATION OF THE SUPPLY CHAIN In 2021 the Group mapped the energy consumption and the type of energy used along the supply chain to identify, together with its suppliers, opportunities for energy efficiency improvements
and the transition to energy from renewable sources. This activi- ty continued also in 2022 and will continue in 2023 with an energy assessment programme involving a total of approximately 15 se- lected suppliers.
This assessment, financed by the Group and carried out by specialist external consultants, focuses in particular on initiatives with short return times and no impact on the quality and timing of production, such as the feasibility of installing photovoltaic sys- tems at suppliers sites or the purchase of renewable energy. These actions identified will support the supplier in formulating a strategy for reducing consumptions and CO2 emissions.
LOGISTICS SYSTEM The challenges the logistics system had to face in recent years, characterized by the pandemic and geopolitics, have been sever- al: from the need to continuously review the geography of supply locations and the modes of transport linked to the reduction of air traffic, to management of lack of logistics capacity in some peri- ods and in some areas, the closures of logistics hubs to the volatil- ity of costs.
During the year, the Group s efforts aimed to increase the au- tomation and standardisation of processes, to integrate the main logistics service providers into the Group s IT systems and to devel- op internal competence centres on areas ensuring business conti- nuity and processes sustainability.
The Group seeks to implement logistics solutions that ensure effectiveness, operational efficiency and compliance with delivery times alongside with the attention to the environment. It encourag- es and supports its logistics partners in adopting increasingly sus- tainable systems and modes of transport. Various activities have been carried out over the years or are under evaluation to contain environmental impacts and costs.
The main streams of the Moncler Group s commitment towards a low environmental impact logistics system are:
identifying efficient routes to reduce distances travelled optimising flows to minimise travel space-efficient packaging to deliver the same volume of
product in less space packaging with a lower environmental footprint promotion and use of means of transport with a lower envi-
ronmental impact.
In recent years, Moncler has modified the packaging used to trans- port finished products, resulting in a significant reduction in vol- umes handled and, thus, in the need for vehicles and, consequently, the environmental impacts generated in terms of GHG emissions.
The Group is constantly committed to identifying and using more environmentally efficient systems and modes of transport to ensure operational efficiency and compliance with delivery times. Also in 2022 Moncler compensated last-mile emissions for the e-commerce channel in Korea and Japan, and in the Americas and EMEA Regions, it continued to use the UPSĀ® carbon neutral service.
Furthermore, in order to reduce returns associated with the e-commerce channel, in 2022 the Operations function and the Dig- ital area implemented an activity aimed at refining the information on the fit of the garment available on the online channel. This activi- ty made it possible to simplify the understanding of the information and consequently reduce the number of returns resulting from the purchase of the wrong garment size.
INITIATIVES TO PROMOTE SUSTAINABLE MOBILITY The Moncler Group is aware of the impact of urban mobility and encourages its employees to adopt solutions with a lower environ- mental impact.
In particular, in 2022, due to improvement in the pandemic situation, at Moncler the car pooling initiative for employees at the Trebaseleghe office (Padua) was resumed. This initiative, encour- aged by the Group through a contribution provided to those who make their car available, enables Moncler people to benefit from moments of socialisation with their colleagues, while also limiting the environmental impact of travel. In addition, also in 2022 Mon- cler continued to promote the use of bicycles by making company bicycles available to all employees at the Milan and Trebaseleghe
18 Well-to-Wheels (WtW) value. Emissions from logistics transport have been calculated in accordance with the GLEC Framework 2.0.
19 In line with the recommendations of the Science-Based Targets initiative, the scope 3 emissions covered by the objective do not include emissions associated with the use of sold product.