137 Be FAIR136 Be FAIR MONCLER GROUP 2023

dIMenSIOn deFInITIOn

6 A wage that complies with the regulations on social insurance payments and paid holi- days and that does not include disciplinary wage sanctions.

7 A wage on which workers receive sufficient in- formation in advance (through an individual work contract), during the production process (through regular communication channels) and at the time of the wage payment (through a detailed payslip).

A wage that is negotiated individually (with the employer only) and collectively in particu- lar through collective bargaining between the employer and the workers representatives who are freely accepted in the company.

8 A system based on equal wages for equal work that does not lead to wage discrimination and does not generate unjustified, too high and too rapidly growing wage differentials with- in the company.

9 A wage that progresses at least in proportion to price increases.

10 A wage that grows in proportion to the compa- ny s sales and profits and does not lead to a fall in wage share compared to the company s performance growth.

11 A wage whose progression does not lead to a dramatic reduction in wage costs within total production costs and as a percentage of employment.

12 A wage that progresses along with changes in intensity at work, technological contents and the evolving skills and tasks of the labour force.

In general, the Group is committed to work with all players in its supply chain, specialised associations and other strategic partners to increase awareness and understanding of the issue of fair wages.

ANIMAL WELFARE AND TRACEABILITY down is one of the most important raw materials for Moncler. For this reason, all suppliers are not only required to meet the highest quality standards, but also to act responsibly and with full respect of animal welfare.

To protect animal welfare, Moncler demands and verifies that its down suppliers comply with the strict requirements laid down in the Moncler technical DIST Protocol (Down Integrity System & Traceability), available on the page dist.moncler.com. The dIST Protocol, first implemented in 2015, regulates farming standards, animal welfare, down traceability and technical quality. Moncler only purchases down that is DIST-certified.

Among the basic requirements that must be respected across the entire supply chain:

down must be exclusively sourced from farmed white geese and as a by-product of the food chain

no form of live-plucking or forced feeding is permitted.

The protocol, drafted taking into consideration the peculiarities of the Moncler s supply chain, is the result of open and construc- tive dialogue within the scope of a multi-stakeholder forum set up in 2014, which considered the expectations of the various stake- holders to ensure a scientific and holistic approach to the topic of animal welfare and product traceability. The forum, chaired by a professor of Management at the Ca Foscari University of Ven- ice with specific knowledge and expertise in sustainability issues,

Remuneration system

Communication and social dialogue

Wage discrimination and wage disparity

Real wages

Wage share

Wage cost

Work intensity, technology and up-skilling

consists of Moncler people, experts from the department of Vet- erinary Medicine of the University of Milan, the Polish national In- stitute of Animal Husbandry Koluda Wielka, Compassion in World Farming (a non-governmental organisation dedicated to the wel- fare of farm animals), representatives from certification and con- sulting companies (SGS, Control Union, IdFL and KPMG). Starting in 2023, following the inclusion in the dIST Protocol of the specif- ic modules on human rights and environmental compliance, repre- sentatives of international organisations such as the International Labour Organization were added to the dialogue. From the belief that dialogue is a source of improvement, Moncler organised the tenth multi-stakeholder forum in March 2024. At the forum, the new updates to the Protocol aimed at further developing the docu- ment were discussed.

The dIST Protocol assesses animal welfare from an innova- tive perspective. In addition to the traditional approach that focuses on the environment in which the animal lives (in terms of availabili- ty of food and water, adequate space for movement, etc.), the Proto- col, in line with the european Commission guidelines, also assesses welfare by carefully observing the animal through the so-called An- imal-Based Measures (ABMs)6. ABMs allow a direct assessment of an animal s condition, by observing how geese respond to the dif- ferent factors of the environment in which they live (outcome ap- proach). The dIST Protocol features nine ABMs including, among others, those designed to identify unusual behaviours or aspects such as plumophagia7, dislocated or broken wings, feather irregular- ities, abnormal beak colour. These situations can be associated with environments in which welfare of geese is compromised by various factors, including high animal density, inadequate diet, lack of pas- ture or inappropriate animal management.

Another important, innovative indicator introduced in the Pro- tocol is the evaluation of the human-animal interaction through the response to a specific test (the HAR test, estep and Hetts, 1992).

All down suppliers must strictly comply with the Protocol s re- quirements to ensure raw material traceability, animal welfare and the highest quality at every link of the down supply chain. To verify compliance with the principles set out in the Protocol, Moncler con- stantly carries out strict field audits throughout its almost entire- ly vertically-integrated down supply chain. The down supply chain includes different types of entities: geese farms; slaughterhouses where animals are exclusively slaughtered for meat production and where down is subsequently collected; and companies responsi- ble for washing, cleaning, sorting and processing the raw material. Façon manufacturers who realise the finished products downstream the down purchasing process also have to be taken into account.

To ensure the utmost impartiality of audits: audits are commissioned and paid directly by Moncler and

not by the supplier the certification process is carried out by a qualified third-par-

ty entity, whose auditors are trained by veterinarians and zoo- technicians of the department of Veterinary Medicine at the University of Milan

the certification authority is in turn audited by another ac- credited external certification body.

In particular, in 2023 156 third-party onsite audits were carried out, verifying all entities in the supply chain. Where auditors found minor non-compliances, farms were required to take timely correc- tive action before obtaining certification. no cases of live-plucking of animals or forced-feeding were found during audits at any farm.

To transparently communicate the Company s commitment in this area, a tag indicating dIST-certified down is included in all Moncler s jackets. This important result was achieved by extending down traceability according to dIST Protocol across the entire sup- ply chain, all the way through the finished product.

In order to promote constant improvement and therefore sig- nificantly impact animal welfare, Moncler is committed to involve and raise awareness throughout its supply chain, including through training activities. In this regard, in 2023 training on the traceabili- ty procedure continued for façon manufacturers of outerwear and knitwear, with eight training courses totalling approximately 20 hours. In addition, several online training sessions continued to be held in 2023 with the auditors of the third-party specialised firm that

6 Animal-Based Measures are indicators that can be directly observed on animals and that assess their actual conditions in relation to their abil- ity to adapt to specific farming environments. These measures include physiological, pathological and behavioural indicators.

7 Plumophagia is an abnormal behaviour in avian species that consists of pecking the feathers of another bird or tearing them with the beak.