133 Be FAIR132 Be FAIR MONCLER GROUP 2023

throughout the supply chain. The risk analysis is carried out using various tools at all the entities of the value chain: all Moncler Group offices, existing and potential business relationships (e.g., mergers or acquisitions), suppliers, sub-suppliers and their employees, in- cluding women, children, indigenous peoples and local communi- ties, in any way connected to or affected by, directly or indirectly, the Group s activities.

In particular, in 2023 the Group, with technical support from a specialised international partner, conducted a specific assess- ment of the risk of human rights violations throughout its supply chain. The analysis, carried out at country level, covered all stages of the production process. As a result of this project, the potential risk profile for each of the main human rights was mapped, includ- ing decent wages, health and safety at work, discrimination in the workplace, child labour, forced labour, trafficking in human beings, migrant workers, freedom of association and collective bargaining.

The theoretical risk assessment analysis confirmed that the services and production processes carried out by the Group in di- rectly managed locations do not present a significant risk profile of potential human rights violations, while those managed by the Group s direct suppliers are characterised by diversified levels of risk. In particular, the stages of the supply chain related to cotton cul- tivation and intermediate processing of finished products could po- tentially be characterised by higher risk profiles compared to other stages. For this reason, the Group has for years implemented struc- tured monitoring and prevention processes aimed at mitigating these risks throughout the entire supply chain. Among the human rights an- alysed within the supply chain, ensuring decent wages has emerged as one potentially at risk. Indeed, for years the Group has been com- mitted to monitoring this issue through specific analyses on the liv- ing wage (see also pages 135-136). Lastly, country-level analysis has highlighted the presence of higher potential risks in Southeast Asian countries, where the Group s supply chain has very limited presence.

This risk-based approach is essential for the prevention and mitigation of negative impacts on human rights. This includes prior- itizing audits based on criteria that take into account the potential risk level of human rights violations, as well as selecting new sup- pliers considering the risk of human rights violations as one of the evaluation criteria.

The Supply Chain and Procurement departments are regularly involved in training activities where the results of the assessments of the risk of human rights violations along their supply chain are shared.

In addition to the periodic analysis of the risk of human rights violations throughout the value chain, various analyses are carried out annually to identify the main risks and impacts, including envi- ronmental aspects, with particular attention to issues such as cli- mate change (see also pages 58-62), biodiversity (see also pages 198-199) and water consumption.

PReVenTIOn And MITIGATIOn OF IMPACTS The integration of the analyses carried out during the risk as-

sessment allows the Group to obtain a complete, in-depth risk map and is the basis for defining the actions to prevent and mitigate ad- verse impacts throughout the supply chain.

The main tool implemented by the Group to prevent and mit- igate impacts throughout the supply chain is the periodic and sys- tematic ethical, social and environmental auditing of suppliers with which the Group already has a working relationship, in order to verify compliance with applicable laws and the principles con- tained in the Group s Codes.

In order to ensure maximum impartiality, audits are regularly conducted by qualified, experienced third parties. The audits focus on verifying respect for fundamental human and worker rights, with particular attention to issues of forced labour, child labour, free- dom of association, working hours, guaranteed minimum wage and health and safety. The Group s proprietary checklist, used to per- form audits, is regularly updated to take account of changes in ref- erence standards and local and international regulations. In 2023, an updated and revised version was used with the technical sup- port of the International Labour Organisation (ILO), including even stricter requirements than in previous versions.

The Group has a three-year audit plan that ensures all façon manufacturers and finished product are audited at least once ev- ery three years.

In 2021-2023, Moncler conducted 564 ethical, social and envi- ronmental audits (on both suppliers and subcontractors), account- ing for approximately 100% of the volumes assigned to outerwear façon manufacturers, 81% of the volumes assigned to suppli- ers of other outerwear processes (dye houses, printing works, embroideries, etc.), 99% of footwear and bag suppliers, 39% of tanneries, 97% and 94% of the volumes assigned respectively to knitwear suppliers and soft accessories suppliers, and 96% of the 2022 turnover of pattern making and prototyping suppliers.

Stone Island, which has a three-year ethical, social and en- vironmental audit plan aimed at ensuring the highest coverage of suppliers in its supply chain, also carried out 2815 ethical, social and environmental audits during the same three-year period (on both suppliers and subcontractors), equal to around 99% of the val- ue of orders assigned to finished products suppliers and 98% of the value of orders assigned to façon manufacturers.

Moreover, during 2023 both Brands also conducted ethi- cal, social and environmental audits on major raw materials suppli- ers representing 79% of total material purchases for Moncler and 93% for Stone Island. In particular, with regard to the down sup- ply chain, 100% of Moncler s suppliers were also found to comply with the new human rights and environmental compliance mod- ules officially included in the dIST Protocol. Those environmental and social modules were also applied to Stone Island s down sup- plier verification processes.

Lastly, ethical, social and environmental audits also contin- ued to be carried out on strategic service suppliers: logistic plat- forms, external quality control platforms, providers of services at Group offices and stores for which no significant non-complianc- es were identified.

In addition to the standard environmental module included in ethical, social and environmental audits, in 2023 Stone Island con- ducted 18 specific environmental audits on a selection of fabric, finishing and dyeing suppliers, while Moncler examined the anal- yses of the waste water of 32 companies with wet processes on a sample of fabric, down, dyeing, weaving and tannery suppliers to identify impacts related to potential spills or cases of water con- tamination. no critical non-compliances have emerged from the conducted activities. It is the Group s objective to continue moni- toring these activities in the coming years.

These audit activities were complemented by audits on ani- mal welfare and on down traceability as per the dIST (down Integ- rity System & Traceability) Protocol across the entire supply chain for Moncler and according to the Responsible down Standard (RdS) for Stone Island. See also pages 136-138; 145; 161-163.

SUPPLY CHAIN AUDITS: ETHICAL, SOCIAL, ENVIRONMENTAL AND ANIMAL WELFARE

NUMBER Moncler Group 2023 2022 2021 ethical, social and environmental audits 389 239 180 Animal welfare and traceability (dIST) audits down supply chain 156 136 136 Total 545 375 316

The increase in the number of ethical, social and environmental au- dits during the last year is due to the verification activity for new human rights and environmental compliance modules within the dIST Protocol.

CORReCTIVe MeASUReS AdOPTIOn In case violations of applicable laws or principles contained in the Group s Codes and Policies are identified during audit activities, the Group commits to implementing appropriate actions to reme- dy the situation.

notwithstanding the zero-tolerance approach for major breaches, for which the Group reserves the right to terminate imme- diately the existing contractual relationship with the supplier, both Brands are committed to support their supply chain raising aware- ness and driving continuous improvement, requiring the implemen- tation of corrective actions where needed. Following each audit, an improvement plan is issued and its implementation is then verified.

The Group undertakes to proactively support all suppliers in implementing the agreed corrective actions.

5 The figure includes 37 ethical, social and environmental audits carried out by Stone Island prior to the closing of the acquisition by Moncler S.p.A. of the entire share capital of Sportswear Company S.p.A., the company that owns the Stone Island brand.