135 Be FAIR134 Be FAIR MONCLER GROUP 2023

In order to verify that corrective measures are effectively imple- mented by the agreed deadline, the Group carries out both on-site and documentary follow-up audits.

With regard to the 389 suppliers audited in 2023, at year-end more than 89% of them were in line with the Group s social and en- vironmental standards (91% of critical suppliers). Relationship was terminated with around 4% of them (14 suppliers), and the remain- ing 7% turned out to have open non-compliances at the end of 2023, as the audit activity took place just before the last months of the year and not all the actions aimed at remediating the non-com- pliances had already been closed.

In 2023, with particular reference to social aspects, 190 of the 389 sites audited were found to have non-compliances and the relative improvement plan was issued. The main areas of non-com- pliance were related to occupational health and safety (73%) and, in 25% of cases, aspects relating to management of employment relationships, including non-compliance relating to salaries and re- muneration (12%), working hours (8%), employment contract man- agement (5%), and, in only 2% of cases, human rights issues. For the least critical non-compliances, it was agreed with the suppliers to implement a resolution plan promptly, while in the most critical cases, collaboration with the supplier was always ended.

Aware of the fact that promoting principles of responsibili- ty among its suppliers is beneficial to mutual sustainable growth, in addition to constantly raising awareness of ethical, social, environ- mental and animal welfare topics, the Moncler Group supports its supply chain in several ways. In particular, Moncler supports some strategic suppliers, making health and safety experts available to give advice and develop knowledge of best practices and providing operational support for investments in technologically advanced machinery for particular processes (21 suppliers in 2023). The pro- gramme was also extended to Stone Island suppliers in 2022.

FAIR WAGe PRACTICeS ALOnG THe VALUe CHAIn

In its Supplier Code of Conduct and Human Rights Policy, the Group recognis- es the importance of ensuring wages that are compliant with the law or binding collective agreements and, in any case, adequate to the cost of living, the em- ployee s basic needs, discretionary profit, market benchmarks and the type of professional performances.

Suppliers must provide a fair level of compensation and career develop- ment that reflects knowledge, skills, abilities, professional experience, benefits, salary and non-salary incentives.

Like the Group, suppliers are expected to provide all the benefits required by the law, including, but not limited to, social security, parental leave, annu- al holidays and calendar holidays, in addition to engage in regular social dia- logue on compensation issues. Moreover, all suppliers are required to bear the responsibility for taxes and other costs of recruiting and hiring workers, includ- ing migrant workers, temporary workers and fixed-term contracts.

In 2021 the Group, with the support of a third party, began carrying out specific assessments on the living wage on both its corporate sites and sup- pliers, with the aim of covering 100% of the Group s critical suppliers by 2025.

As of december 2023, the percentage of critical suppliers assessed and involved in a living wage analysis was 65%.

In particular, Moncler partners with the Fair Wage Network, an indepen- dent organisation dedicated to progressing fair wage practices across global supply chains. The methodology adopted by Fair Wage network focuses on the collaboration of companies and suppliers and assess wage practices through workers and managers questionnaires, identifying potential issues and sudg- gesting improvement activities.

The Fair Wage network assessment methodology is structured around 12 dimensions, covering the entire spectrum of wage indicators: the living wage is therefore only one of the dimensions analysed while other variables of the wages practices and pay systems are evaluated such as wage negotiation with workers representatives through collective bargaining, the presence of griev- ance mechanisms for complaints on remuneration issues, etc.. Another area of the analysis involves comparing the results of the assessment with sector and country parameters.

The implementation of this analysis and the gradual extension to oth- er Moncler suppliers have been assessed and prioritised on the basis of the risk profile associated with the geographical location of the supplier and oth- er factors, such as the presence of collective labour agreements, which ensure dialogue and respect for social and environmental aspects. To this regard, ap- proximately 70% of the Moncler Group s suppliers is located in Italy and is cov- ered by collective bargaining agreements.

The 12 dimensions of analysis of the assessment carried out by the Fair Wage network are:

dIMenSIOn deFInITIOn

1 A wage which is regularly and formally paid in full to the workers.

2 A wage that ensures minimum acceptable living standards.

3 A wage that complies with the regulations on legal minimum wage.

4 A wage that is comparable to wages in similar enterprises operating in the same sector in the same country.

5 A wage based mainly on ordinary working hours without requiring to use excessive overtime.

6 A balanced wage structure between base wage, additional bonuses and benefits.

A wage that reflects different levels of education, skill and professional experience, and that remunerates individual and collec- tive performance.

Payment of salaries

Living wage

Minimum wage

Prevailing salary

Payment of hours worked

Remuneration system