Moncler - Annual Report 2024

Moncler Group | Annual Report 2024 Board of Directors’ Report 106 | ’

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[GOV–5] Risk management and internal controls

over sustainability reporting

The Sustainability Statement was subjected to a series of both

internal controls, through procedures that involved the data

owners and the Sustainability Unit, and external controls by the

auditing f irm. In 2024, to strengthen and consolidate existing

ractices, the Moncler Group launched a project that led to the

def inition of a solid Internal Control System for Sustainability

Rep

orting. This system, developed in response to the requirements

of the European Sustainability Reporting Standards (ESRS),

is a structured set of processes, tools and procedures designed

to ensure the accuracy and completeness of the sustainability

information included in the Group Sustainability Statement

equired by the Corporate Sustainability Reporting Directive

(CSRD), as well as compliance with these standards.

The system has been designed in accordance with best practices

in the f ield of internal control, in particular taking

into

account the Internal Control Integrated Framework (CoSO

Framework ICRMS), which represents the benchmark

against which each component of the Moncler Group’s internal

control system is set, maintained and assessed. In addition,

the Internal Control System for Sustainability Reporting operates

in alignment with current regulations and corporate governance

best practices, fully integrating into the Group’s Internal Control

and Risk Management System.

The project, led by the Internal Audit Function with the support

of a specialised external company, included an initial phase

dedicated to the def inition of the governance model of the Internal

Control System for Sustainability Reporting. Subsequently,

the processes, roles and responsibilities, the operating model,

the supporting tools, the information f lows and the methods

of coordination between the Sustainability Unit and the other

corporate functions involved in the process of collecting

sustainability information were identif ied.

At the same time, the scope of application of the Internal

Control System for Sustainability Reporting was def ined

through an analysis based on the potential risk of misstatement

in reporting, developed on four assessment drivers: complexity8,

prioritymateriality of the topic9 ownership10 and potential impact

due to misstatement of the data This analysis has made

it possible to categorise the indicators subject to reporting into

three levels of risk high medium and low and to identify the

Group companies that contribute most signif icantly to reporting

The potential reporting risks relate to any inaccuracy and

incompleteness of the data collected any errors in the

calculation of the indicators and any lack of alignment with

ESRS requirements

Subsequently, with reference to the def ined scope, risk mitigation

controls were identif ied, namely Process Level Control, Entity

Level Control and Group Wide Control, which will be implemented

from 2025.

The risks and controls identif ied have been reported in the

“Risk

& Control Matrix”, which summarizes information related

to control design to assess their ef fectiveness and possible

integration into existing company procedures.

In addition, from 2025 the Internal Audit Function will

implement independent testing on the Internal Control System

or Sustainability Reporting, in line with the activities already

carried out for f inancial reporting, with the aim of ascertaining

the adequacy and correct functioning of the controls.

Finally, a summary report will be formalised, detailing the

results of the testing activities, any shortcomings in control

that are found and the relevant corrective actions. The Control,

Risks and Sustainability Committee will regularly review these

results, contributing to the constant improvement of the system.

With the aim of progressively increasing the level of control

over the sustainability reporting process, the Moncler Group

plans to extend the scope of the Internal Control System

for Sustainability Reporting and the number of reference

indicators in the coming years.

The level of complexity increases

when the process of collecting data

andor calculating the indicator requires

aggregations estimates or the use of

calculation formulas

Depending on Management expectations

analyses conducted on historical data

and industry publications

Widespread or concentrated