131 Be FAIR130 Be FAIR MONCLER GROUP 2023

sequent significant negative impact at the level of economic performance, time, cost and waste. The early Product engi- neering Programme enables any critical issues to be identi- fied and addressed in advance with all development teams so that the problem can be solved quickly: the so-called, de- sign for manufacturing.

In addition, to promote the inclusion of specialised technical per- sonnel in the Company, Moncler continued the MATE (Moncler Academy for Technical Excellence) programme to create a school of craftsmanship aimed at training technical personnel such as proto- typers, pattern-makers and quality experts. In 2023, the third edition of the programme was launched, involving 14 participants for a total of more than 20,500 hours of professional training. during the year, the training course was enriched and revised according to a more structured approach, becoming a full-fledged academy with qual- ified, highly specialised internal teachers. See also pages 99-100.

The Pattern Making School training programme at the pro- duction site in Romania also continued, with the aim of increasing skills among Moncler s personnel and thus strengthening certain departments such as modelling, CAd, development and place- ments through the training and recruitment of local students. See also pages 99-100.

To ensure supply chain excellence, Moncler has implemented a vendor rating system that assigns an overall supplier rating also considering sustainability aspects. each indicator is weighted and helps to assess a supplier based on the results achieved in each ar- ea. The vendor rating areas are:

sustainability and compliance (working conditions and re- spect for human rights, observance of chemical substance standards, indicators relating to the results of compliance tests carried out on products, environmental practices, an- imal welfare, etc.)

quality (rate of production defects, quality complaints report- ed to client service, etc.)

delivery service level (flexibility, delivery punctuality, etc.) cost (price competitiveness, logistics costs, etc.) innovation (technological capacity, aptitude for innovation,

etc.) financial sustainability (degree of economic resilience of the

supplier).

With regard to indirect suppliers, i.e. suppliers of goods and services not related to products, since 2018 the mapping of suppliers quali- ty, social, environmental and health and safety certifications is con- tinuously updated. Of the Group s approximately 800 main indirect suppliers mapped, most have at least one certification, and around half already have ISO 45001 health and safety certification and/or ISO 14001 environmental certification. The Group also continued its awareness-raising activities to promote improvement objectives with suppliers relating to the importance of certification processes. Finally, since 2021 Moncler has verified the reliability of its partners, with the addition of information on the management of sustainability issues. Approximately 120 suppliers have been involved in this activ- ity. These indirect suppliers, mainly manufacturers and maintenance and service providers, have been evaluated according to 28 criteria, divided into four categories: environmental, work and human rights, health and safety, and ethics. This tool based on international prin- ciples, standards and guidelines such as the Global Compact, Global Reporting Initiative, ISO 26000 and the OeCd Guidelines provided a series of parameters making it possible to assess and compare the social and environmental performance of indirect suppliers.

For the Moncler Group, talking about quality also means talking about health and safety, respect for human rights, environmen- tal protection and, in general, ethics in business conduct along the entire value chain. Being a socially responsible company in- volves taking a commitment that extends well beyond its bound- aries, embracing the entire supply chain.

SUPPLY CHAIN DUE DILIGENCE Suppliers are strategic partners, this is why the Group s relation- ship with them goes beyond the economic and commercial sphere. For Moncler and Stone Island, excellence means quality, style, and innovation, but also a commitment to promote a supply chain that is attentive and respectful of workers rights, of animal welfare, and of the environment.

The focus on ethical, social and environmental aspects along the supply chain starts with the supplier selection phase and con- tinues with systematic awareness-raising and monitoring ac- tivities. Knowledge, traceability, sharing of best practices and verification are in fact fundamental, not only to limit situations of risk, but also, and above all, to generate culture and promote the re- sponsible, sustainable development of the business for the benefit of the entire supply chain.

To this end, the Group has developed a comprehensive, sys- tematic due diligence process that is constantly strengthened and updated in view of emerging regulations.

THe GROUP S POLICY SYSTeM The Moncler Group has adopted specific internal policies to ensure and promote transparent, responsible management of its value chain. These policies include the Moncler and Stone Island Brand Codes of ethics, the Human Rights Policy, the environmental Policy, the Anti-Corruption Policy, the Health and Safety Management Pol- icy and the Group Supplier Code of Conduct.

during the contracting phase, all suppliers4 must sign the Code of Ethics with the related policies, and the Supplier Code of Conduct outlining the principles and guidelines that inspire the Group s business and guide the behaviour and actions of all those with whom Moncler and Stone Island interact. By signing the Code, suppliers commit to comply with these principles and ensure that their subcontractors comply with them as well. Violation of these principles constitutes a breach of contract, with the right, depend- ing on the severity of the situation, to immediately terminate the re- lationship. See also pages 50-51; 53; 55-56.

More specifically, the Supplier Code of Conduct is inspired by the Universal declaration of Human Rights and the ILO Conven- tions, and sets out the Group s expectations for the main areas of responsible business. It consists of six sections (Labour and Hu- man Rights, Health and Safety, the environment, Animal Health and Welfare, Product and Service Safety and Quality and Business eth- ics) and contains the mandatory requirements that suppliers must follow in order to begin or continue working with the Group.

The Group procedure that governs the selection of all new sup- pliers was updated in 2021. The evaluation of a new supplier involves an on-site visit by the quality team to assess the supplier s alignment with the Group s quality standards. After this technical analysis, the evaluation process for new façon manufactures and new finished products suppliers involves an ethical, social and environmental au- dit by a third party. For raw material suppliers, the process requires the completion of an environmental and social evaluation question- naire supported by documentary evidence and then a third party on- site audit, that is carried out in line with the provisions of the audit plan. The Group thus commits to not include in its supply chain com- panies that do not comply with the Moncler and Stone Island quali- ty standards and basic ethical, social and environmental principles.

In 2023, the teams that manage the selection of new suppli- ers were involved in training sessions during which the steps of the procedure to be followed for the various types of suppliers were re- viewed. during these sessions, suggestions for improvement were collected in order to make the process increasingly effective.

RISK ASSeSSMenT The commitment to upholding the principles and guidelines that in- spire the Group s operations starts with the early, preventive iden- tification of actual or potential risks of violations of these principles

RESPONSIBLE SOURCING

4 Approximately 85% of significant contracts include compliance with the Brands Code of ethics (95% for Moncler).