43 BOARd OF dIReCTORS RePORT42 BOARd OF dIReCTORS RePORT MONCLER GROUP 2023

ipating in the cleaning of parks and public spaces. At the same time, activities were carried out to restore and maintain schools and community centres in the cities of Milan, Padua and Modena. In May 2023, in collaboration with the Francesca Rava n.P.H. Foun- dation, the Group involved employees in the restoration activities of the places affected by the floods in emilia-Romagna, recording great adhesion and active participation from people.

Since 2021, Moncler has launched the Be Warm project, car- ried out together with Officine Buone, thanks to which people make their artistic talents available to Italian hospitals, sharing their passion for art, painting, photography and music: in July 2023, the Group s volunteers performed in a musical concert at the RSA Mater Grati- ae in Milan, donating a moment of entertainment and serenity to pa- tients and doctors, while in december 2023, the selected visual and digital art works were exhibited at the niguarda hospital in Milan.

during the year, numerous initiatives also saw the Group s Re- gions engaged in various activities, from social work to the clean- ing and conservation of natural areas such as parks and beaches.

In 2023, globally, 476 employees took part in these pro- grammes for a total of more than 2,083 volunteer hours.

For the Moncler Group, the true value of the Company lies also in the way the Group does business, in its contribution to society as a whole and in the determination to honour its commitments.

The growing integration of social and environmental im- pact assessments into business decisions is what underpins the Group s ability to create long-term value for all stakeholders.

The Group firmly believes that the quality of its products goes beyond their technical characteristics. A quality product is one that is made responsibly and with respect for human rights, workers rights, the environment and animal welfare.

In 2021, the 2020-2025 Strategic Sustainability Plan was extended also to Stone Island and integrated with new objectives confirming the commitment to sustainable development and how environmental and social responsibility is increasingly an integral part of the Group s business model. The strategy focuses on five strategic drivers: climate action, circular economy, fair sourcing, enhancing diversity, and giving back to local communities.

The Plan includes science-based greenhouse gas emission reduction targets, the commitment to achieve net zero emissions by 2050, as well as the recycling of nylon production waste at its own sites and in the production chain, the use of 50% low-impact fabrics and yarns by 2025, i.e. recycled, organic, from regenerative agricul- ture or certified according to specific standards. The Sustainability Plan also focuses on the traceability of raw materials and the contin- uous improvement of social and environmental standards along the supply chain through close cooperation with its production partners. Internal and external awareness-raising initiatives are also envisaged to favour and enhance diversity and promote an increasingly inclu- sive culture, in addition to obtaining equal Pay certification. The Mon- cler Group is also committed to supporting local communities with projects of high social value in favour of the community and to pro- tecting children and families in vulnerable situations from the cold.

Moncler joined the Fashion Pact, a coalition of leading global fashion and textile companies, which together with suppliers and distributors, is committed to achieving shared goals focused on three main areas: contain global warming, protecting biodiversity and the oceans.

In order to increasingly integrate sustainability into its busi- ness, the Moncler Group has implemented a governance that in- volves the interaction of different bodies dedicated to supervising and managing social and environmental issues.

The Sustainability Unit has the responsibility of proposing the sustainability strategy of the Group, identifying, promptly report- ing to top management and managing, together with the relevant functions, the risks related to sustainability, including those relat- ed to climate change and biodiversity, as well as finding areas and actions for improvement, thus contributing to the creation of long- term value. It also prepares the Consolidated non-Financial State- ment and fosters a culture of sustainability within the Group. Lastly, the unit promotes a dialogue with stakeholders and, together with the Investor Relations division, handles the requests of sustainabil- ity rating agencies and Socially Responsible Investors (SRI).

SUSTAINABILITY

Ambassadors have been selected from each Company s de- partment to raise awareness of social and environmental issues in the departments where they operate and to promote sustain- ability initiatives that are in keeping with the Group s objectives. Moreover, starting from 2017, Sustainability data owners have also been picked, each responsible in their area, for data and in- formation published in the Consolidated non-Financial Statement and for achieving the objectives in the Sustainability Plan, for areas in their responsibility.

The annual incentive system (MBO) is strongly linked to eSG (environmental, Social, and Governance) themes, using a KPI tied to achieving the annual goals of the 2020-2025 Sustainability Stra- tegic Plan. The medium to long-term incentive system (which in- cludes the stock incentive plan called Performance Shares Plan 2022 , approved by the Shareholders Meeting on April 21, 2022) in- cludes an eSG Performance Indicator linked to carbon neutrality for all directly managed company locations (offices, stores, production sites, and logistics hub), reducing single-use virgin plastic, and re- cycling nylon production waste. There is also an over-performance target linked to obtaining a high rating of the Group s overall sus- tainability performance from one of the primary eSG rating agen- cies, including S&P Global, CdP, MSCI, or Sustainalytics. This goal was achieved with the maximum percentage of attainment in 2023.

As further evidence of the degree to which the Company s senior management supports and promotes sustainability, the Control, Risks, and Sustainability Committee was established as a committee of the Board of directors. The Committee is composed of three non-executive and independent directors and was entrust- ed by the Board of director to supervise sustainability issues asso- ciated with the business activities of the Group and its interactions with stakeholders, to define strategic sustainability guidelines and the relevant action plan (Sustainability Plan) including issues on cli- mate change, biodiversity and human rights, and to review the Con- solidated non-Financial Statement.

In terms of financial instruments, Moncler is testing and adopt- ing new mechanisms linked to sustainability performance. In no- vember 2020, Moncler signed an agreement for forex risk hedging which provides for a premium in terms of improvement in hedging strikes on currencies based on the recognition of high sustainability standards by an external and independent assessment body.

The Moncler Group, in compliance with article 5, paragraph 3, letter b of Legislative decree no. 254/2016, has issued a Con- solidated non-Financial Statement, which comprises a separate report and describes the year s main environmental and social ac- tivities and also publishes the results achieved in relation to Sus- tainability Plan objectives. The 2023 Consolidated non-Financial Statement is prepared in compliance with the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) and is partially audited by deloitte & Touche S.p.A.

In order to continue to improve the transparency of the eSG (environmental Social Governance) performance and facilitate the comparability of the data and information provided to differ- ent stakeholders, starting from 2020 Moncler has also begun to consider some indicators provided by Sustainability Accounting Standards Board (SASB) with the aim of gradually expanding dis- closures in subsequent publications.

The Corporate Sustainability Reporting directive - CSRd (eU directive 2022/2464), approved and published in the eU Offi- cial Journal in december 2022, will come into force for the Moncler Group with the Sustainability Report for the fiscal year 2024. The same will have to be prepared according to the new european Sus- tainability Reporting Standards (eSRS) and be included within the Management Report. The Group has already begun the transition process to comply with the new requirements.

THE DIST PROTOCOL As part of its commitment to ensuring animal welfare and the full traceability of the down, Moncler requires and ensures that all its down suppliers comply with the strict standards of the down Integ- rity System & Traceability (dIST) Protocol. Applied since 2015, the dIST Protocol sets out standards for farming and animal welfare, traceability and the technical quality of down. Moncler only pur- chases down that is dIST-certified.