Moncler - Annual Report 2024

Moncler Group | Annual Report 2024 Board of Directors’ Report 155 Moncler Group | Annual Report 2024 Board of Directors’ Report 154

[E1 SBM–3] Material impacts, risks and opportunities

and their interaction with strategy and business model;

[E1 IRO–1] Description of the processes to identify

and assess material climate-related impacts, risks

and opportunities

For the purposes of the double materiality process, the Group

has identif ied and assessed the impacts, risks and opportunities

related to climate change (the assessment did not take into

account the mitigation actions implemented by the Group).

For the assessment of impacts, the Group relied on data and

information collected over the years for the calculation and

nitoring of energy consumption and greenhouse gas emissions

along the entire value chain, in accordance with the guidelines

of the Greenhouse Gas Protocol (see also pages

167–174

The assessments highlighted the actual impacts of emissions

generated by production processes and activities, attributable

to the following types:

•direct emissions (scope 1), generated in the directly managed

corporate sites worldwide, including of f ices, stores, production

plants and the logistics hub;

•indirect emissions attributable to the consumption

of purchased electricity (scope 2), relating to the directly

managed corporate sites worldwide, including of f ices, stores,

production plants and the logistics hub;

•emissions along the value chain (scope 3), including upstream

and downstream activities.

For the assessment of risks and opportunities related to climate

change, the Group also took into account the results of the

analyses carried out on a voluntary basis since 2021, according

to the recommendations of the Task Force on Climate-related

inancial Disclosures (TCFD), which focus on four fundamental

illars: Governance, Strategy, Risk Management, Metrics

and Targets. These analyses are coordinated by the head of the

Risk Management Function responsible for the integrated

management of risks (Enterprise Risk Management — ERM),

on behalf

of the Director in charge of the Internal Control

and Risk Management System ICRMS in collaboration with

the Sustainability Unit The results of the assessments are

integrated into the ERM model which estimates the probability

of occurrence and the f inancial ef fect of the risks This

approach helps identify and monitor over time the assets and

business areas that require greater ef forts in the transition towards

a lowerimpact model as well as def ine targeted mitigation

actions to ensure a resilient business strategy These analyses

im to understand climate evolution and the trends that could

inf luence business activities providing a solid basis for adapting

operational strategies in the long term The results are

periodically shared with the Control, Risks and Sustainability

Committee, ensuring ef fective supervision and integration

into the business strategy.

As part of the process for the identif ication of climate-related

risks, the Group has identif ied:

•p

hysical risks, i.e. related to the physical impact of climate

events, identif ied through tools such as climate risk maps

(for example, for water-related risks such as f lood risk, the

Aqueduct Water Risk Atlas was used),

•t

ransition risks, i.e. arising from the process of transition

to a low-carbon economy, linked for example to changes

in public policies, regulations, technology and client choices.

The analyses are carried out considering both directly managed

sites and the value chain, with particular attention to raw

materials and production sites in the supply chain.

The identif ied risks are analysed qualitatively and quantitatively

and the relevant assessments are updated periodically, using

climate scenarios consistent with TCFD recommendations and

based on scientif ic projections.

Regarding physical risks, an assessment was performed on the

asis of the climate scenarios identif ied by the Intergovernmental

Panel on Climate Change (IPCC) i.e. RCP2 2.6, RCP

4.5 and RCP 8.5. In particular, RCP 4.5 represents an intermediate

emissions scenario aligned with the Paris Agreement, while

RCP 8.5 ref lects a business-as-usual scenario with increasing

greenhouse gas emissions and limited climate policies.

The analysis is performed over three dif ferent time horizons

to assess how climate events can evolve and af fect the business.

In particular:

•short term (2025): aligned with the Group’s strategic business

plan timeline;

medium term by 2030 aligned with the Groups sciencebased

emission reduction commitments in line with the ScienceBased

Targets initiative

long term by 2050 consistent with the Groups

Net Zero commitment and in line with international

scientif ic evidence provided by the IPCC as well as the goals

of the Paris Agreement to limit the global temperature rise

to 15C

Representative Concentration Pathway

[E1 GOV–3] Integration of sustainability-related

performance in incentive schemes

Moncler’s Remuneration Policy1 is def ined in line with the

governance model adopted by the Company and with

the recommendations of the Corporate Governance Code.

Among other aspects, it takes into account sustainability

targets, including climate-related ones, whose achievement

contributes to the assessment of the performance of the

members of the administrative, management and control bodies.

As detailed in the chapter ESRS 2, GOV–3 (see also

page 104), the short-term incentive system (Management By

Objectives — MBO) includes ESG (Environmental, Social

and Governance) targets linked to the 2020–2025 Strategic

Sustainability Plan concerning the relevant year. With regard

o the pillar of the Plan relating to climate change, the targets

include, among others, improving energy ef f iciency and reducing

CO2 emissions. The ESG indicator’s weight in variable

remuneration is 10%.

The medium/long-term incentive system (Long Term

Incentive — LTI) includes share-based incentive plans incorporating

an ESG indicator tied to specif ic sustainability goals, which,

in relation to the f ight against climate change, for the f irst cycle

of the “2022 Performance Shares Plan”, concern maintaining

in 2024 the carbon neutrality at the Group’s sites worldwide through

the use of 100% energy from renewable sources, 90% of low-

missions vehicles in the Company’s f leet and the compensation

of unavoidable residual emissions. The ESG indicator’s weight

in variable remuneration is 15% (see also page 104).

In addition, the medium/long-term incentive system includes

an overperformance criterion that ref lects the achievement

of a high sustainability performance rating by one of the leading

ESG rating agencies.

For more information regarding Monclers

remuneration system please refer

to the 2025 Remuneration Report

containing the new Policy that will be

submitted to the Shareholders Meeting

on 16 April 2025 and to the previous

versions available on the website

at wwwmonclergroupcom in the

GovernanceRemuneration section