Moncler - Annual Report 2024

Moncler Group | Annual Report 2024 Board of Directors’ Report 128 | ’

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[IRO–1] Description of the processes to identify and

assess material impacts, risks and opportunities

For the Moncler Group, the materiality analysis has always been

an important tool for identifying the most signif icant

environmental and social priorities for its stakeholders and for

the industry, in line with its strategy and business impacts,

to identify and manage risks and opportunities and to def ine

the contents of the sustainability reporting.

With the entry into force of EU Directive 2022/2464

on the Corporate Sustainability Reporting Directive (CSRD),

the double materiality analysis was introduced, considering

two complementary perspectives: impact materiality, which

concerns the identif ication and assessment of the impacts

hat the Group has (or could have) on the environment and people,

and f inancial materiality, which focuses on the theoretical

risks and opportunities arising from environmental, social

governance issues that may negatively or positively af fect

the f inancial position, operating result, cash f lows, access to f inance

or cost of capital.

As a result, the Group’s Sustainability Unit, with the support

of a specialised f irm, has revised its materiality analysis process

to align it with the requirements of the new sustainability reporting

standards, the European Sustainability Reporting Standards

(

ESRS), updating the methodology and structuring it into the

following phases, as indicated in the “IG1: Materiality Assessment

Implementation Guidance” issued by the European Financial

Reporting Advisory Group (EFRAG):

•Understanding the context. This phase involved an in-depth

analysis of the Group’s activities, its business relationships,

the context in which it operates and the relevant stakeholders.

The goal was to gather the necessary information to map

the phases of the value chain, identify the actors involved in each

of them, assess the positive, negative, actual and potential

impacts as well as identify risks and opportunities. In addition

to the in-depth analysis of internal documentation,

a benchmarking analysis was conducted to compare the Group

with its industry peers, identifying relevant sustainability

issues and ensuring a comprehensive and best practice-aligned

perspective To deepen the understanding of the external

context the legislative landscape in which the Group operates

and the issues of interest to clients and investors were

then considered as well as the ESG macrothemes described

in articles and scientif ic publications

•Identif ication of impacts, risks and opportunities based on the

list of topics and sub-topics provided by the ESRS16 and

in the light of what emerged from the analysis of the internal

and external context, the list of risks identif ied through

the Group’s integrated risk management model (Enterprise Risk

Management — ERM), the relevant sustainability topics

published in the 2023 Consolidated Non-Financial Statement

and the results of the due diligence processes. In the majority

of cases, the identif ied impacts had corresponding risks

and/or opportunities.

The identif ication of potentially material impacts, risks and

opportunities for the Group was also possible thanks

to the support of public databases that facilitate the

identif ication of sectoral impacts.

In the process of identifying and assessing impacts, risks and

opportunities, the Moncler Group took into consideration

all the geographical areas in which it operates, as well as the

various activities along its value chain. In addition, where

necessary, the specif icities linked to individual countries,

production sites or business relationships were highlighted.

The list of impacts, risks and opportunities identif ied was

subsequently approved by the competent functions during

the assessment phase.

•Assessment and determination of relevant impacts, theoretical

risks and opportunities. Each impact, risk and opportunity

was subsequently assessed by the relevant competent function,

supported by the Sustainability Unit and Risk Management,

taking into account several factors. In particular, for the purposes

of the assessment, an analysis was performed to determine

whether the generation of the impact, risk or opportunity

emerged predominantly in the Group’s own activities

and/or along its value chain (in the case of the value chain,

both upstream and downstream impacts, risks and

opportunities were considered), also taking into account

the short, medium or long-term time horizon17 in which

the impact, risk or opportunity occurs or may occur.

In line with the provisions of ESRS the functions assessed

the impacts taking into account their materiality measured

according to scale scope irremediable character the latter

only for negative impacts and likelihood only for potential

impacts Scale is def ined as the measure of the benef it

deriving from a positive impact or the severity of a negative

impact scope represents the extent of the impact

and irremediable character indicates the extent to which

a negative impact can be remedied The risks and opportunities

were instead assessed considering in addition to the

likelihood the magnitude def ined according to scale and nature

of the related f inancial reputational or compliance ef fects

It is important to stress that the impacts risks and

opportunities have been identif ied and assessed without taking

Application Requirement AR 16 ESRS 1

in Appendix B of Annex II of the CSRD

Moncler considered the following time

horizons short term within the next

reporting year medium term to 2030

and long term to 2050