MONCLER ANNUAL REPORT AT 31 DECEMBER 2020BOARD OF DIRECTORS REPORT 4342

SUSTAINABILITY

The Company 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.

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

With the new Sustainability Plan Moncler Born to protect, Moncler presents a wide-reaching plan that further integrates social and environmental responsibility into its business model, focusing on five strategic drivers: climate action, circular economy, fair sourcing, enhancing diversity, and giving back to local communities. Moncler was born to protect from the cold. The new Sustainability Plan extends this founding purpose of protection to people and to our planet, tackling some of the most pressing challenges facing the world.

The Moncler Sustainability Plan introduces precise goals for the Company to meet. These include reducing its environ- mental impact by becoming carbon neutral, the recycling of fabric scraps and the use of sustainable nylon as well as the elimination of single-use plastics. In another important step towards a more circular economy, Moncler will start recy- cling DIST-certified down through an innovative mechanical process that requires 70% less water compared to traditional down recycling processes. The Sustainability Plan also targets the traceability of raw materials and the continuous improve- ment of social and environmental standards throughout the supply chain through close collaboration with our business partners. Moreover, the plan encompasses dedicated internal and external awareness-raising initiatives aimed at foster- ing and enhancing diversity while promoting an ever more

inclusive culture. Moncler is further committed to supporting local communities through impactful social projects and to protecting 100,000 of the most vulnerable children and fami- lies from the cold.

In addition, 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: combating global warming, restoring biodiversity. and protecting the oceans.

The integration of the sustainability strategy is overseen by solid governance, which involves the interaction of differ- ent bodies.

The Sustainability Unit is responsible for identifying and, together with the relevant functions, managing risks related to sustainability, finding areas and actions for improvement, proposing the sustainability strategy and drawing up the annual Sustainability Plan, preparing the Consolidated Non- Financial Statement, and fostering a culture of sustainability at the Company. Lastly, the Unit promotes a dialogue with stakeholders and, together with the Investor Relations division, handles the requests of sustainability rating agencies and the needs of Socially Responsible Investors (SRIs).

Ambassadors have been selected from each Company's department, to raise awareness of social and environmental issues in the areas where they operate and to promote sustainability initiatives that are in keeping with the Group s objectives. Sustainability data owners have also been picked, each responsible, in their area, for data and information published in the Consolidated Non-Financial Statement and for achieving the objectives in the Sustainability Plan Objectives, for areas in their responsibility.

For Moncler, 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.

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 tasked with: supervising sustainability issues associated with the business activities of the Company and its interactions with stakeholders; defining strategic sustainability guidelines and the relevant action plan; and reviewing the Consolidated Non-Financial Statement.

In 2020, for the second year in a row Moncler ranks as Industry Leader of the Textile, Apparel & Luxury Goods sector in the Dow Jones Sustainability Indices World and Europe. In addition, the Company received the Gold Award from S&P Global. The Group is also included in the ECPI indices: ECPI EMU Ethical Equity, ECPI Euro ESG Equity and ECPI Global ESG Equity.

In terms of financial instruments, Moncler is testing and adopting new mechanisms linked to sustainability performance: in July 2020, the Company has signed a financial credit line with Intesa San Paolo S.p.A. that consists of a sustainability-linked revolving credit facility with a rewarding mechanism linked to the achievement of environmental impact reduction targets. In November 2020, Moncler signed an agreement for forex risk hedging with Intesa Sanpaolo 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.

Moncler, in compliance with article 5, paragraph 3, letter b of Legislative Decree no. 254/2016, has issued a Consolidated Non-Financial Statement, which comprises a separate report and describes the year s main environmental and social and also publishes the results achieved in relation to Sustainability Plan

objectives. The 2020 Consolidated Non-Financial Statement, prepared in compliance with the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) core option and partially audited by KPMG S.p.A., is available on the Group s website.

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 different stakeholders, starting from this year Moncler has also begun to consider some indicators provided by Sustainability Accounting Standards Board (SASB) with the aim of gradually expanding disclosures in subsequent publications.