171 THInK CIRCULAR & BOLd170 THInK CIRCULAR & BOLd MONCLER GROUP 2023

target parameters on which suppliers are encouraged to improve and find alternatives.

The Group is aware of the importance of monitoring the chem- icals used in the production process to prevent potential contami- nation of materials, products, water and sludge. This monitoring is governed by the Manufacturing Restricted Substances List (MRSL) which, together with the PRSL, sets out the list of substances that suppliers and sub-suppliers have to monitor during the various phases of production in order to anticipate and reduce the risk of possible critical issues relating to products, materials and the envi- ronment, and provide the basis for proper production method and root-cause analysis. The Group s MRSL was defined taking into ac- count the main industry standards (e.g. Zero discharge of Hazardous Chemicals - ZdHC, to which Stone Island has adhered since 2019) and requires for further investigation and specific requirements.

The MRSL and PRSL apply to all levels of the supply chain in- volved in the production of materials and products. For parameters, substances, methods and detection limits, suppliers are required to refer to the MRSL and/or PRSL depending on the substrates an- alysed and considered.

The MRSL and PRSL govern more than 350 chemicals and are two important parts of the Group s strategy aimed at continuing to reduce potential environmental impacts.

Suppliers and sub-suppliers, primarily those that manage wet processes, are encouraged proactively to develop a chemical management system through which to monitor and test, including through qualified third entities, chemical products, such as waste water and sludge, in addition to materials, components, products and treatments. This includes keeping the chemical inventory and documentation up to date, as well as implementing batch tracking and screening and/or testing of different chemical formulations at least seasonally, if not via sampling or during inspections. Suppli- ers must verify that concentrations of substances identified in any substrate ensure compliance with legal requirements or with those of the Group, if more restrictive, and investigate the source of any problems, taking the appropriate corrective actions.

Both Brands monitor compliance with the requirements based on a sampling procedure that identifies the samples to be tested, frequency and tests to be performed. Test activities, carried out sea- sonally, start at the materials research phase and continue with the prototyping and sampling phases, up to production.

Samples and substances to be tested are selected consider- ing the type of materials (fabrics, leather, etc.) involved, formulations used in the production process (e.g. colours, finishing agents, etc.), availability of documentation, frequency and quantity of use in the supply chain, particularities and sophistication of certain effects, etc.

Tests on components, water, chemical formulations and finished products are carried out through ISO 17025 accredited third-party testing laboratories and are performed by both suppliers and the Group.

Production accessories undergo further inspection to anal- yse their technical compatibility with fabrics and with the indicat- ed garment care, such as the reaction with the detergents during washing, while for fabrics physical-mechanical properties such as water resistance, pilling, colour solidity, slippage of seams, tear re- sistance, breathability, etc., are checked. At Stone Island, special attention is paid to the garment dyeing process, and production ac- cessories and fabrics are subjected to in-depth preliminary tests including compatibility with the treatment and the presence of im- purities and other components that could result in anomalies in the dyeing phase in order to make, where necessary, changes and op- timisations to the process itself.

The Moncler Group does not tolerate any compromises in terms of health and quality standards: if a product does not pass the tests, the purchasing process is stopped until the suppli- er demonstrates that it can provide a product that complies with the requirements.

In terms of technical quality in the product production pro- cess, during the supplier selection phase the experts at both Mon- cler and Stone Island s quality management division carefully examine whether a partner has adequate skills and technologies that enable the production of garments in line with the required standards, and that can ensure constant and uniform quality levels. The experts then verify the progress of the process and compliance with the product quality standards on a weekly basis.

Before entering production, each model is subjected to various fit- tings, the purpose of which is to verify attention of each detail and alignment with the stylistic and model indications, and ensure max- imum comfort and fit.

Lastly, all Moncler and Stone Island products undergo an in- depth final quality inspection before being placed on the market. These controls, through a structured process subject to a proto- col, thoroughly check and ensure the aesthetics, characteristics, size, labelling and functionality of each of the Brands garments. In 2023 the department responsible for managing the quality of Moncler brand products obtained certification of its Quality Man- agement System, in accordance with the ISO 9001:2015 standard, to ensure constant improvement within the company towards sat- isfaction of clients, the internal team and suppliers. Finally, in this last phase the Group implements and verifies a complex anti-coun- terfeiting protocol using the latest-generation technology.

DOWN QUALITY down is the most important raw material to Moncler. Since the be- ginning of the Company s history, down has been the heart of all its jacket, gradually becoming the identity of the Brand itself.

Thanks to its long experience and constant research and de- velopment, Moncler now has unique expertise in terms of both its understanding of the raw material and the garment manufacturing process. Moncler requires its suppliers to comply with the highest quality standards, which over the years have been, and continue to be, a key element of product differentiation. However, for the Com- pany, quality is more than that: the origin of the down used and respect for animal welfare are also fundamental for Moncler and are taken into account in the raw materials purchasing process as much as quality. See also pages 136-138.

In particular, the technical quality of Moncler down is en- sured by a complex process that ensures that only the best white goose down is used to make garments. each batch of down is dou- ble-checked to verify it complies with 11 parameters, relating to quality (as well as aspects of hygiene and health), identified by the strictest international regulations and the restrictive requirements established by the Company: first through sophisticated analysis by an accredited independent body and then through further tests car- ried out at Moncler s internal laboratory, home to highly-specialised down technicians. In 2023, more than 1,300 tests were carried out.

down cluster content and fill power are the main indicators of down quality. Moncler garments contain at least 90% white goose down cluster and only 10% feathers/small feathers. This high per- centage of down cluster guarantees a high fill power, i.e. the ca- pacity of the down to occupy volume: the higher the fill power, the greater the performance in terms of lightness, thermal capacity and insulating properties. Moncler down has a minimum fill power level of 710 (cubic inches per 30 grams of down) translating into warm, soft and light garments, able to offer unique comfort.