Moncler Group | Annual Report 2024 Separate Financial Statements 426 Moncler Group | Annual Report 2024 Separate Financial Statements 427

For Scope 3 emissions:

•progressive introduction of “preferred" materials

in collections;

•promotion of regenerative agriculture projects;

•decarbonization of the supply chain through energy

ef f iciency measures and the adoption of renewable

energy sources.

The impact of climate change has also been evaluated in relation

to es

timates and assessments made in the f inancial statements.

As of the reporting date, there are no signif icant ef fects

on the f igures presented in the Financial Statements.

An Environmental, Social and Governance (ESG) indicator

was added to the Performance Share Plans starting

from 2020, requiring sustainability goals to be met. In line

with this development, the medium-long term incentive system

def ined by the 2022–2024 Policy is the “2022 Performance

Shar

e Plan", which focuses on key carbon-neutrality goals

for

al

l directly managed company sites (of f ices, stores, production

sites and logistics hubs), the use of nylon from “preferred"

raw materials (e.g., recycled nylon, bio-based nylon),

and the a

ttainment of certif ication for pay equity between

women and men for employees at the Italian sites

in Milan and Trebaseleghe. Additionally, as an overperformance

criterion, the plan sets a further goal for one of the leading

ESG rating companies to award a high evaluation to the Group's

sustainability performance.

2. Material accounting principles

The accounting principles set out below have been applied

consistently for f iscal year 2024 and the prior year.

2.1 Property, plant and equipment

Property, plant and equipment are stated at acquisition

or manufacturing cost, not revalued net of accumulated

depreciation and impairment losses (“impairment"). Cost includes

original purchase price and all costs directly attributable

to bringing the asset to its working condition for its intended use.

Depreciation

Depreciation of property, plant and equipment is calculated

and recognised in the income statement on a straight-line basis

over the estimated useful lives as reported in the following table:

Leased assets are depreciated over the shorter of the lease term

and their useful lives unless it is reasonably certain that the Group

will take ownership of the asset by the end of the lease term.

De

preciation methods, useful lives and residual value are

reviewed at each reporting period and adjusted if appropriate.

Gain/Losses on the disposal of property,

plant and equipment

Gains and losses on the disposal of property, plant and equipment

represent the dif ference between the net proceeds

and net book value at the date of sale Disposals are accounted

when the relevant transaction becomes unconditional

CATEGORY DEPRECIATION PERIOD

Land No depreciation

Buildings From 10 to 33 years

Plant and equipment From 6 to 12 years

Fixtures and f ittings From 5 to 10 years

Electronic machinery and equipment From 3 to 5 years

Leasehold improvements Useful life of improvements

Rights of use Lease period

Other f ixed assets Depending on market conditions generally

within the expected utility to the entity