Moncler Group | Annual Report 2024 Board of Directors’ Report 323 Moncler Group | Annual Report 2024 Board of Directors’ Report 322

Mapping risks and opportunities according to the TCFD framework

RISK DESCRIPTION MITIGATION ACTIONS

Intensif ication of extreme and chronic climatic

phenomena (physical risk – long term)

The progressive intensif ication of extreme

and chronic climatic phenomena (heavy rainfall,

tornadoes, heat or cold waves, storms,

f ires, drought phenomena, etc.) could potentially

impact the physical operational sites of the

Group and its supply chain, resulting in possible

disruption or reduction of production levels

(business continuity) or a potential increase

in production costs.

The risk did not exceed the materiality threshold

of the double materiality assessment in relation

to the supply chain.

⚫

The Group has adopted insurance cover aimed

at limiting the economic impact of any

damage caused by extreme climatic events.

⚫

For its sites, the Group carried out a detailed

assessment of physical climate-related

risks (e.g. the area’s exposure to hydrogeological

and geomorphological risks). Based on the

results of the risk assessment, the Group adjusts

the project design to minimise its exposure

to the identif ied risks.

⚫

The Group has def ined specif ic action plans

to deal quickly and effectively with any

emergency situations relating to its logistics

services or its supply chain in order to guarantee

business continuity.

⚫

The Group has adopted a procurement strategy

aimed at diversifying its supply chain as much

as possible both in geographical terms and in

terms of independence from individual suppliers.

Change in client purchasing dynamics (transition

risk – long term)

The increasing sensitivity of end and wholesale

clients towards companies with strong

social and environmental commitments, as well

as products with lower environmental impact,

could directly ref lect on purchasing preferences.

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The Group pays particular attention to create value

for its clients and establish relationship of trust;

to this end, a Strategic Sustainability Plan has been

def ined and achievement of its targets

is periodically and transparently reported

in the

Group’s public documentation, which

describes

the commitment to sustainable development

and underlines how environmental and social

responsibility are increasingly an integral part

of the business model, focusing on f ive strategic

priorities: climate change and biodiversity,

the circular economy, responsible sourcing, valuing

diversity and supporting local communities.

⚫

The Group has def ined targets related to the use

of lower impact materials compared

with conventional solutions used by the Group:

⚪

over 50% of yarns and fabrics with

“preferred”12 materials in the 2025 collections;

⚪

50% “preferred” nylon by 2025;

⚪

50% cotton from organic/regenerative

agriculture or recycled by 2025;

⚪

70% wool certif ied to specif ic standards, such

as the Responsible Wool Standard, by 2025.

In the SS and FW 2024 collections, the Group

has included more than 50 recycled nylon about

37 preferred cotton and about 70

certif ied

wool for example the Responsible Wool Standard

RWS Nativa and Sustainawool To date over 43

of fabrics and yarns consist of preferred materials

12

Materials that aim to have a lower impact

than conventional solutions used by the

Moncler Group eg materials that are

recycled organic or certif ied according

to specif ic standards

RISK DESCRIPTION MITIGATION ACTIONS

As for the theoretical risk deriving from the

preference for lighter garments is not

currently quantif iable. Despite the expected

increase in average seasonal temperatures

and the potentially shorter winter seasons

by 2050, there is also evidence of the increase

in extreme weather events, as demonstrated

by studies by the MIT (Massachusetts Institute

of Technology), NSF (National Science

Foundation) and GIST (Gwangju Institute

of Science and Technology). These factors,

when combined, are diff icult to be assessed

in terms of potential impact.

⚫

Over the years, Moncler’s product range has been

expanded to include, in addition to other categories,

such as t-shirts, sweatshirts, knitwear, shoes and

other accessories, also light jackets (100 grams)

that can be used at warmer temperatures,

or multilayer solutions that increase opportunities

for use.

Increase in cost/decrease in availability of some

raw materials (physical risk – long term)

Climate change such as rising temperatures

and droughts could impact the production

capacity of some natural raw materials.

This could affect both availability and

purchase price.

The risk did not exceed the materiality threshold

of the double materiality assessment.

⚫

The Group has adopted a strategy to diversify its

supply chain so that it can effectively manage

any f luctuations in the price/availability of raw

materials in certain geographic areas, while

establishing long-term relationships and

agreements that result in benef icial

business relationships.

⚫

The Group has set strategic targets related

to the use of lower-impact materials compared

to the conventional options used by the Group,

considering that those deriving from organic

or regenerative agriculture are more resilient

to climate change and their cultivation has

a lower environmental impact:

⚪

50% cotton from organic/regenerative agriculture

or recycled by 2025;

⚪

70% of wool certif ied to specif ic standards

(e.g. Responsible Wool Standard–RWS, Nativa

and Sustainawool) by 2025.

In the SS and FW 2024 collections, the Group has

included about 37% “preferred” cotton and about

70% certif ied wool, e.g. Responsible Wool Standard

(RWS), Nativa and Sustainawool.

⚫

The Group is always looking for innovative solutions

with a low impact in terms of materials.