Moncler Group | Annual Report 2024 Board of Directors’ Report 265 Moncler Group | Annual Report 2024 Board of Directors’ Report 264
[S2–2] Processes for engaging with value chain
workers about impacts
The Group places great importance to dialogue and sharing good
practices with its suppliers, both in the technical f ield for the
benef it of business activities, and in the social and environmental
f ield, to promote responsible behaviour. The Sustainability Unit,
the Operations & Supply Chain Department and the Internal Audit
Function work closely together to ensure continuous engagement
throughout the supply chain. This engagement takes place through
multiple channels, ranging from informal periodic meetings
to more structured institutional occasions. To further strengthen
this relationship and simplify the exchange of information
and documentation, a dedicated web portal is available for the
Group’s suppliers.
Recognizing the importance of also considering feedback from
suppliers’ employees, the ethical, social and environmental audits
conducted by qualif ied third parties on behalf of the Group include
dedicated interviews. These interviews involve a representative
sample of workers at the audited suppliers and are conducted
anonymously without the presence of management to foster
an environment in which people can express themselves freely.
The interviews explore key topics such as working conditions,
respect for human rights and employee well-being, as well as
labour law compliance concerning applicable regulations and
standards, awareness and understanding of the Group’s grievance
mechanisms, freedom of association and compliance with
health and safety regulations. Particular attention is given to
the most vulnerable categories, such as migrant and/or refugee
workers, to ensure that their specif ic needs and conditions are
adequately protected.
A further channel through which the Group is updated and
made aware of issues related to suppliers’ workers is its close
collaboration with bodies and organisations with expertise in
human rights. For example, the Group actively collaborates with
the Fair Wage Network, an independent organisation that is
dedicated to promoting fair wage practices in global supply chains.
The Fair Wage Network annually updates its database on living
wage levels in each country — the salary suf f icient to cover basic
needs — involving workers from dif ferent companies in various
sectors through surveys and interviews to of fer an up-to-date
overview of real economic conditions in global supply chains.
In addition, the Moncler Group relies on the support of the
ILO Helpdesk for Business, a reference point for corporate
managers and workers on international labour standards and
good industrial relations to protect social dialogue and
working conditions.
Thanks to the ongoing dialogue with the experts from these
international organizations, the Group gains an in-depth and
up-to-date understanding of industry challenges and priorities,
enhancing its ability to make informed and responsible decisions.
[S2–3] Processes to remediate negative impacts and
channels for value chain workers to raise concerns;
[S2–4] Taking action on material impacts on value chain
workers, and approaches to managing material risks
and pursuing material opportunities related to value
chain workers, and effectiveness of those actions
To ensure proper and responsible management of workers
throughout the value chain, the Group has adopted an integrated
due diligence system in line with the OECD (Organisation for
Economic Co-operation and Development) guidelines, which
includes, in addition to the def inition of standards and policies
that suppliers must adhere to, risk analysis processes, mitigation
actions, third party compliance verif ication by specialised entities
and, when necessary, remediation plans, as well as the availability
of whistleblowing and grievance platforms.
The due diligence process covers the verif ication of compliance
with all human rights recognised in the Group Human Rights Policy,
including, among others, the prohibition of forced labour, child
labour, all forms of discrimination and human traf f icking, freedom
of association and the right to collective bargaining, the promotion
of fair wages and working hours and the protection of occupational
health and safety. It also extends to environmental issues such
as climate change, biodiversity and water consumption.
Constantly strengthened and updated in response to emerging
regulations, the process was developed by the Sustainability Unit
in collaboration with the Internal Audit Function, the Legal Function
and the Operations & Supply Chain Department.
The process is complemented by a whistleblowing system that
enables the collection and management of reports on behaviour
that is unlawful or does not comply with the required standards.
This system, which ensures the anonymity for the whistleblower,
can be used not only by the Group’s employees but also by any
external party, including workers in the value chain (see also
page 303–304).
Suppliers are required to display the Code of Ethics in
workplaces, detailing the whistleblowing channels and procedures.
The Group is committed to verifying during ethical social
and environmental audits that the suppliers workers are aware
of the whistleblowing system
Below are the steps of the due diligence process which are
structured starting from the def inition and adoption of specif ic
policies essential to ensuring and promoting a transparent and
responsible supply chain management as described on page 263
•Risk assessment
The risk analysis is carried out using various tools and applies
to all entities within the value chain. It includes all the
Moncler Group sites, existing and potential business relationships
(e.g. mergers or acquisitions), potential and actual suppliers,
sub-suppliers and their employees, including women,
children, indigenous peoples and local communities, in any way
connected to or af fected by, directly or indirectly,
the Group’s activities.
In particular, every year, the Group, with the technical support
of a specialised international partner, conducts a specif ic
risk assessment of environmental impact and human rights
violations. The analysis, carried out at country level, covers
all stages of the production process. As a result of this project,
the potential risk prof ile by geographical area for each of
the main human rights was mapped, including decent wages,
health and safety at work, discrimination in the workplace,
child labour, forced labour, inadequate working hours, human
traf f icking, migrant workers, freedom of association and
collective bargaining. The theoretical risk assessment analysis
conf irmed that the services and production processes carried
out by the Group at directly managed sites do not present a
signif icant risk prof ile for any potential human rights violations,
while those managed by the Group’s direct suppliers and
their supply chains are characterised by diversif ied levels of
risk. In particular, the stages of the chain relating to cotton
cultivation and the intermediate processing of the f inished
product might potentially be characterised by higher risk
prof iles than the other stages. For this reason, for years the
Group has implemented structured monitoring and prevention
processes aimed at mitigating these risks throughout the
entire supply chain Among the human rights analysed within
the supply chain ensuring decent wages has emerged as
one potentially at risk Indeed for years the Group has been
committed to monitoring this issue through specif ic analyses
on the living wage see also pages 267268
Lastly the countrylevel analysis revealed the presence of
higher potential risks in Southeast Asian countries where
the Groups supply chain has a very limited presence
The Operations Supply Chain and Purchasing Procurement
teams are periodically involved in training activities where
the results of human rights risk assessment along the supply
chain are shared