65 RESPONSIBLE BUSINESS MANAGEMENT64 RESPONSIBLE BUSINESS MANAGEMENT MONCLER GROUP 2022
OPPORTUNITY DESCRIPTION AND IMPACT ADAPTATION AND MITIGATION ACTIONS TO REALISE THE OPPORTUNITY
Increase in resource efficiency The efficient use of resources, such as electricity, at the Group s sites and operations may lead to a reduction in the energy used and the emissions generated, with a consequent reduction in operating costs.
The Group has implemented, and continues to imple- ment, various efficiency measures:
Environmental certifications: all Moncler and Stone Island corporate sites are ISO 14001 certified; the Castel San Giovanni (Piacenza) logistics hub is BREEAM certified. In addition, all new corpo- rate sites will be LEED certified. Compliance with certification and standard criteria results in in- creased efficiency of the buildings and of contin- uous improvement.
Efficiency initiatives: Over the years, traditional lighting systems have been replaced with LED lights and thermal insulation systems have been adopted to ensure greater energy. The latest generation LEDs ensure an estimated energy sav- ings of up to 80% compared to conventional lighting systems, while also generating less resid- ual heat. To date, 99%5 of Moncler stores world- wide (100% in the United States, Korea, Japan and Europe) have LED lighting systems. In addition, Moncler extended the use of Building Management System (BMS) to stores for more efficient man- agement of energy consumption.
Change in client purchasing dynamics Increasing awareness of clients with respect to climate change topics has been registered, especially among younger generations. Clients are paying increasing attention to the environmental impact of the fashion in- dustry and showing growing interest in lower impact products and more responsible companies.
The Group has already been working for some time to integrate lower-impact materials into its collections:
In 2021, Moncler launched Born To Protect range of jackets made from lower-impact materials. In 2022 the project was expanded into a collection.
The Group is committed to introduce 50% yarns and fabrics made from lower-impact materials across all collections by 2025:
50% of the nylon used in collections will be from recycled materials by 2025;
50% lower-impact cotton (organic/regenera- tive) by 2025;
70% wool certified Responsible Wool Standard (RWS) by 2025.
The increasing integration between economic decisions and the as- sessment of their social and environmental impacts are the basis for the Group s ability to create long-term value for all stakeholders.
MATERIALITY ANALYSIS For the Moncler Group, the materiality analysis has always been an important tool for identifying the most significant environmen- tal and social priorities for its stakeholders in line with its business strategy and business impacts, identifying and managing risks and opportunities and defining the contents of the Consolidated Non-Financial Statement according to the Global Reporting Initia- tive (GRI) international reporting standard.
In keeping with the update to the most recent 2021 GRI Uni- versal Standards, the Group adopted a new methodological ap- proach in conducting the materiality analysis, which includes the concept of due diligence and strengthens that of impact, to offer a complete picture of business risks and creation of long-term val- ue. In particular, the new GRI 3 Material Topics 2021 emphasises the need for organisations to identify the effects that the organisa- tion has or could have on the economy, environment and people, in- cluding on human rights, which in turn may indicate their (negative or positive) contribution to sustainable development.
The materiality analysis takes into account both the areas provided for in Legislative Decree 254/2016 and the characteris- tic aspects of the industry in which the Group operates, to the ex- tent necessary to ensure an understanding of the Group s activities, performance, results and impact generated by the Company itself.
According to this new approach, the Moncler Group s con- text, activities and business relationships 18 material6 topics have been identified. These topics reflect the organisation s most signifi- cant actual and potential impacts on aspects such as the economy, environment and individuals, including impacts on human rights ( impact materiality ).
The analysis, which since 2015 has been carried out regularly by the Sustainability Unit with the support of a specialised firm, also in 2022 consisted in a structured process involving the manage- ment of both Brands and the Sustainability Unit team as experts in the various areas of competence assessed. The materiality analy- sis process was divided into four phases, as defined by GRI 3 - Ma- terial Topics 2021:
understanding the context through an analysis of the Group s activities, business relationships, the sustainability context in which they take place and the relevant stakehold- ers, with the aim of collecting the information necessary to identify actual and potential impacts. In addition to the inter- nal documentation, a comparison with the reference sector was made
identification of the nature of actual and potential impacts, negative and positive, short- and long-term, predictable and unpredictable, reversible and irreversible, on the economy, environment and individuals, including impacts on human rights, arising from the organisation s activities and business relationships analysed in the previous phase (inside-out per- spective). The impacts were identified through the analysis of corporate documentation (Code of Ethics, Annual Financial Report, Strategic Plan, as well as the results of the risk as- sessment carried out by the Internal Audit function), external literature on scenario changes7, questionnaires by sustain- ability rating companies, comparison with the sector, media and internet research and multi-stakeholder standards/ini- tiatives and dialogue with stakeholders8, including investors
assessment of the significance of the impacts identified through a quantitative and qualitative analysis through one- to-one interviews with the top management of both Brands, who were asked to assess the combination of the severity of the potential impact and the likelihood of occurrence of the residual risk, i.e. net of the activities implemented or planned by the Group to manage the impacts.
The most significant impacts and the related material topics were subsequently submitted to the Board of Directors, following the assessment by the Control, Risks and Sustainability Committee, for approval for reporting purposes.
SUSTAINABLE VALUE CREATION
6 In the analysis, governance, legal compliance, economic performance and brand reputation aspects were considered as prerequisites and were therefore not individually included in the process, but are still reported in this Statement.
7 Report by the World Economic Forum, the Sustainability Manifesto for Italian Fashion, The State of Fashion 2022, reports and studies of the Ellen MacArthur Foundation and Vogue Business.
8 Global Compact, AA1000, GRI and SASB standards, OECD Guidelines for Multinational Enterprises, Recommendations of the Task Force on Climate-related Financial Disclosures, The Fashion Pact and DIST forum.
5 Excluding the shop-in-shops (13 at global level) where lighting systems are provided by the host department stores and on which Moncler cannot take action. However, at 2022 year closing these shop-in-shops had LED lighting systems.