163 THInK CIRCULAR & BOLd162 THInK CIRCULAR & BOLd MONCLER GROUP 2023

The assessment of the environmental impact of materials and com- ponents is supported by Life Cycle Assessment (LCA) analyses that quantify the potential environmental impacts. These analyses, which are based on a structured methodology and in line with ISO 14040, 14044 and 14067 and are certified by an independent, ex- ternal third-party, are a useful tool for various considerations on the sustainability of the products, processes and materials used.  To date, about 70% of the Group s products have been evaluated through an LCA methodology.

A dedicated training programme was launched in 2023 in or- der to continue to spread sustainability culture and provide tech- nical knowledge to Sales Assistants. The programme aims to increase knowledge of good environmental and social practices and the characteristics, certifications and corporate objectives of preferred materials and components used in the collections. This programme involved the entire sales force.

AdOPTIOn OF ReCYCLInG SOLUTIOnS One of the phases of the circular economy model to which the Group has devoted particular attention in recent years is the reuse of scrap materials through more efficient resource management.

To this end, the Group works actively at its production sites and with various suppliers, to reduce scrap and waste, and con- sequently textile waste, by optimising the use and cutting of fab- rics, while implementing the infrastructure needed to recycle and maintain the intrinsic value of unavoidable scrap. Through recycling networks, production scrap can be turned into recycled raw mate- rials, driving the production of new materials and contributing to the promotion of a circular economy. Since 2022, these activities have led to the inclusion in the recycling process of all nylon production scrap generated at the Moncler Group s direct sites in Italy and Ro- mania. This project was also extended to the Moncler brand s out- erwear production network, reaching over 55% of total outerwear nylon scrap in 2023.

This was made possible thanks to the collaboration of the Moncler Sustainable Innovation department, which set the scope, parameters and methods of recycling, and the Operations and Sup- ply Chain department, which implemented the Nylon Scrap Man- agement Process.

According to the procedure, during the year nylon scraps were classified and collected by line operators into specific recy- cling categories, weighed, recorded, stored and sent to the recycler. In order to monitor the correct assignment of scraps to the respec- tive recycling category, the Group carried out physical and process checks at the sites, as well as differential scanning calorimetry anal- yses performed on a sample basis at third-party laboratories.

At the recycler s site, nylon scrap may be subject to unravel- ling or to shredding, melting, cooling, extrusion, and finally cutting the material into chips to be used by as a secondary raw material .

In terms of other raw materials, production scrap of cotton, wool and mixed compositions from directly managed production sites are also sorted into various categories by composition and subjected to different recycling processes.

At Stone Island, the Closed Loop project continued, with the aim of recovering cotton scraps generated by suppliers during garment production by subjecting them to a mechanical recycling process. This process yields 50% recycled cotton fabric used to make about 20 models, including outerwear, trousers, sweatshirts and t-shirts, in- cluded in the 2024 summer and winter collection. In addition, the fin- ished garments were treated with pigments of natural, plant or mineral origin. The entire process was verified by a third party that validated the recycled content and its origin from production scraps.

Thanks to constant collaboration with its suppliers in further pursuit of innovative circular economy solutions for the business, in 2021 Moncler and a supplier specialising in recycling technologies pooled their expertise with down to create a machine used to recy- cle dIST down through an innovative mechanical process. In 2023 the patented process was finalised in Italy and launched at the in- ternational level. Over the last three years, this process has led to the recycling of approximately 5 tonnes of down present in Moncler garments, certified according to the R dIST module of the dIST pro- tocol, which sets the requirements for recycled down certification.

In 2023 the Moncler Group further refined its system for se- lecting and recycling garments that cannot be sold in collaboration

with several international companies with leading roles in fabric re- use and recycling. depending on the category, products are recy- cled and put to various uses such as the creation of new yarns or components for jackets, the production of furnishings and objects often used as visual merchandising for stores. In this direction, in 2022 the Moncler Group joined the Re.Crea consortium, with its ten brand members, under the coordination of the Camera nazionale della Moda Italiana. The consortium was founded to organise the management of textile and fashion products at end of life and to pro- mote research and development of innovative recycling solutions.

The Group s commercial strategy is based on the principle of scarcity and, from an operational point of view, on effective inven- tory management, translating into efficient production planning and the right quantities at the right time and in the right place in order to avoid excessive inventories. This approach, combined with a high level of sell-through, allows to limit the amount of unsold products.

The seasonal garments, i.e. those that are offered for one season only (which differ from carry-overs, which can be reoffered for several seasons) remain unsold, they are placed in the outlet channel operated by the Company or marketed through Family and Friends sales initiatives. In collaboration with some non-gov- ernmental organisations (nGOs), some of them are donated to peo- ple in difficult situations through the Warmly Moncler programme, designed to protect people from the cold. Lastly, the limited num- ber of remaining products are all recycled through innovative and also experimental processes.

ABILITY TO LAST OVeR TIMe Some of the key principles of the circular economy, such as gar- ments ability to last over time, have always been a part of Moncler s dnA. The high quality of its products and the way they stand above fashion and trends ensure that they have a very long average life. This characteristic was the foundation of the Extra-Life project, a service aimed at providing a second life to Moncler s jackets through specif- ic repairs. In 2021 the initiative was launched at a selected group of stores in Italy, France and denmark, involving tailors from local repair platforms and sharing with clients the available garment repair solu- tions. Thanks to efficient and personalised service, tailors are able to repair damaged fabrics, thus extending product life. In 2022 the project was extended to all Regions in which Moncler operates. This initiative is part of a process of increasing customers awareness of how they can contribute to avoiding the environmental impact asso- ciated with the production, purchase and disposal of new garments.

In 2023, through this initiative and the other services of the after-sales channel, the Moncler brand handled more than 30,000 requests for repairs of garments used by its customers, equal to about 27 tonnes, 87% of which were fulfilled. All garments that can- not be repaired and returned to customers are recycled.

In terms of how the customers should use products to in- crease their ability to last over time, information on guidelines for garment care and washing has also been included in product la- bels and in the appropriate composition and care section of the site. In particular, the washing phase should be carried out at low temperatures and without drying, in order to limit the deterioration of garment materials and prevent the potential risk of microplas- tics release. The majority of Moncler products are nylon outerwear that is not usually washed frequently (about once or twice a year) and not made of brushed fabrics, which are the type of fabrics most subject to microplastics release.

SeARCH FOR InnOVATIVe SOLUTIOnS The Group s innovation journey is based on an open innovation model that encourages the exploration and development of ideas, solutions, skills, processes and materials coming from the outside world, such as universities, innovation centres and suppliers of dif- ferent sectors as well as accelerator hubs or research bodies.

This includes collaboration with and support of national and international start-ups, institutes, accelerators and universities, to which research and development investments are allocated, as well as constant collaboration with suppliers to identify innovative solutions for the business.

The Sustainable Innovation team, among its various activi- ties, works closely with the Operations and Supply Chain teams in identifying partners in the various Regions that can guarantee the