139 Be FAIR138 Be FAIR MONCLER GROUP 2023

conducts on-site audits focusing on the requirements present in the new modules on human rights and environmental compliance.

The dIST Protocol is a stringent and innovative document and is intended to remain so. This is why it is constantly evolving and is subject to periodic review through the multi-stakeholder fo- rum. However significant these results may be, Moncler has no in- tention to stop there. Rather, it is determined to continue to strive to promote increasingly ambitious standards, while welcoming the in- sights provided by stakeholders.

Stone Island is also committed to ensuring that the down used in its products is obtained in a manner respectful of animal welfare. Since 2019 the Company has only used duck down cer- tified according to the RdS protocol. The standard aims to ensure that the down used comes from farms that protect animal welfare throughout the production chain, soil protection, biodiversity and full traceability of certified materials. In particular, since 2023, all Stone Island products containing down are labeled with the RdS logo and certification information according to the standard guide- lines. In addition, since 2023 all suppliers in the RdS-certified down supply chain have been subject to third-party audits according to the Group s new human rights and environment modules. With re- gards to other materials of animal origin, the Moncler Group does not use rabbit, including angora, and any other material from spe- cies at risk of extinction included in the CITES categories.

By 2025, the Group is committed to use only certified mules- ing free merino wool and up to 70% of wool certified according to the RWS (Responsible Wool Standard) Protocol.

Moncler had announced in January 2022 that it would phase out the use of fur8 in all its collections, adhering to the Fur-Free Re- tailer Policy. That year, the Company also stopped buying fur from animals farmed or captured in the wild exclusively for this purpose. The last collection to feature fur was Fall/Winter 2023. This deci- sion is consistent with Moncler s ongoing commitment to respon- sible business practices and builds on the Brand s constructive and long-term engagement with the Italian animal rights organisation LAV as a representative of the Fur Free Alliance.

For its part, Stone Island, which has not used fur since 2018, has also pledged not to use it in the future.

TRACeABILITY OF KeY RAW MATeRIALS The Moncler Group is aware of the growing importance of issues relating to the traceability of products and production processes issues that are becoming crucial in business strategies, with a view to both identifying and assessing the risks and social and environ- mental impacts of the supply chain. These issues are also becom- ing increasingly important to clients.

From this awareness, the Group s committed to trace its key raw materials, i.e. nylon, polyester, cotton and wool, in addition to down, traced since 2015. A working group was thus launched, mainly involving collaboration between the Operation & Supply Chain, IT and Sustainability teams, to reconstruct the origin of stra- tegic raw materials.

The project involved an initial phase of analysis and selection of the IT systems and tools necessary to collect and trace the da- ta and information of the various supply chains. Then, a subsequent phase was launched, to define the process methods for tracing strategic raw materials and the required level of information detail according to their nature. The result of this phase led to the identifi- cation of an approach diversified according to the type of raw ma- terial, taking into account the technical and production peculiarities and the complexity of each supply chain.

In 2023, the Group traced at the region level more than 80% by volume for each of the nylon, polyester, cotton and wool fabrics and yarns, in addition to the 100% already traced for the down raw material. In particular, raw materials of natural and animal origin, i.e. cotton and wool, were traced from the growing or farming stages, including, where applicable, the processes of spinning, warping or weaving, knitting, dyeing and finishing. Synthetic raw materials, i.e. nylon and polyester, were traced from the spinning stages, includ- ing, where applicable, the processes of warping or weaving, dyeing, printing and finishing.

depending on the types of materials and the maturity of tech- nical solutions on the market, activities and projects to verify the in- formation, including laboratory tests and certificates to support the

8 The term «fur» refers to any skin with hair from animals raised or caught in the wild exclusively or primarily for their fur, for example fox, mink, coyote, finn raccoon, ermine, etc..

reliability and robustness of the information collected, were then examined. For example, isotope tests are used for cotton materi- als to verify the declared geographical origin, while dnA tests are carried out for organic cotton materials to investigate the presence of genetically modified organisms (GMOs). Finally, for materials made from recycled polyester, tests are carried out to investigate the presence of specific indicators relating to the recycled content. For certified materials (e.g. GOTS, OCS, GRS, etc.), suppliers are required to certify and/or document that the material purchased complies with the required standard.

In 2024, the project will enter a new phase of progressive dig- italisation and consolidation of traceability data within a platform managed in collaboration with a third partner.

Transparent and constant dialogue is at the base of any relation- ship built on trust. It is a key element to foster shared growth, fruitful collaboration and mutual satisfaction.

The Group is attentive to dialogue with its suppliers and to share best practices both on technical aspects related to business activ- ities and on aspects aimed at promoting responsible behaviour. di- alogue is established through various channels, ranging from daily meetings to institutional events.

Interactions with technicians and inspectors from Moncler and Stone Island to oversee various production activities take place daily. Meetings with company experts aim to provide specialised support at all stages of production processes to transfer techni- cal knowledge and resolve any critical issues. The technical team for outerwear garments has been reinforced over the years to en- sure a more extensive presence at façon manufacturers in Italy and abroad, increasing the already numerous checks on quality and progress of work across the line of production. Periodically, Group technicians attend company meetings in order to analyse the sam- ple collection, share industrialization standards, results achieved in the previous season, and goals for the upcoming one.

To offer an additional tool for dialogue and to facilitate the exchange of information and documentation, a web portal entire- ly dedicated to Moncler suppliers has been active since 2017 and was extended to Stone Island suppliers in 2022. Through the por- tal, the supplier can directly access communications and docu- ments, including the Code of ethics, Supplier Code of Conduct and related guidelines. In 2023, the training and capacity-building pro- gramme was reinforced. In particular, Code of ethics training con- tinued through an ad hoc training module on the supplier portal. The course includes a section on human rights principles, which is mandatory for all suppliers registering on the portal. Given the im- portance of the issue, the Group has launched an important col- laboration with the International Training Centre of the International Labour Organisation (ITCILO) to develop ad hoc training and in- formation courses on human rights issues for both suppliers and employees of Moncler and Stone Island. The training, launched in 2023, has been made available to all suppliers and employees of the Group, with specific involvement from the Supply Chain and Procurement departments. The course, which will be updated an- nually, has also been translated into all the languages relevant to the Group, to ensure it can be used by all interested parties. Further- more, training and capacity-building activities on the living wage topic (see also pages 135-136) and on the relevance of energy effi- ciency mechanisms and promotion of renewable energy along the supply chain (see also pages 193-194) have continued, involving a total of 24 suppliers throughout the year.

during 2023, awareness-raising activities on ethical, social and environmental issues continued with some suppliers and sub- contractors (both façon manufacturers and raw materials suppli- ers), and the Company guidelines on compliance and sustainability continued to be spread by sharing technical, chemical and perfor- mance specifications, both during daily activity and through ad hoc video conferences.

DIALOGUE TO GROW TOGETHER