197 ACT On CLIMATe & nATUReACT On CLIMATe & nATURe196 MONCLER GROUP 2023

is mainly for sanitation and, to a minimal extent, steam production for ironing facilities and a small dyeing facility for Stone Island s pro- totyping department. Consumption increased compared to the pre- vious year due to the expansion of the Group s production capacity. Accordingly, water discharges are comparable to those of residen- tial buildings and are therefore drained into the sewage system.

DIRECT WATER CONSUMPTION28

m3 Moncler Group 2023 2022 Water withdrawal 71,070 57,787 Water consumption 992 847 Water discharge29 70,078 56,940

The most significant water consumption is the indirect consumption that occurs along the supply chain in the phases of production of the Group s natural and animal raw materials, particularly for the cultiva- tion of cotton, which is also the main material by volume purchased. Among synthetic fibres, the greatest water consumption occurs in the transformation and dyeing of yarns and fabrics.

INDIRECT WATER CONSUMPTION

m3 Moncler Group 2023 2022 Indirect water consumption for 6,074,618 7,193,090 the production of finished products of which for raw materials30 5,254,671 6,285,984 of which for processing 819,947 907,106

The results of the analysis are used internally to identify and prior- itise actions and projects aimed at reducing the impact on water consumption.

For example, in the supply chains for natural and animal fi- bres such as cotton and wool, the Group has identified regenera- tive farming projects that allow to increase the capacity of the soil to retain water, improving the resilience of crops and reducing the need for irrigation of the fields. For more details, see the paragraph Safeguard Biodiversity on pages 198-199.

In addition, in 2022 the Group launched a long-term research project in collaboration with the Umberto Veronesi Foundation fo- cused on identifying the mechanisms used by specific cotton vari- eties to survive or optimise growth in drought situations. The study aims to understand how to improve the resilience of species select- ed for agriculture in a less favourable environmental scenario and with limited water resources.

The Group s goal is to continue to refine the analyses carried out so far, enriching them with increasingly granular data, involving suppliers that operate upstream in the supply chain to collect infor- mation on water consumption of their production processes in or- der to identify potential risks and mitigate impacts.

In addition, with regard to indirect water impacts, the Group is monitoring developments in Science Based Target for Nature (SBTn) guidelines in order to define quantitative targets on the most important areas.

WASTE The waste generated by the Moncler Group s direct activity main- ly relates to packaging material, to office waste and textile process- ing scraps.

The Group is committed to limiting waste generation and continues to refine its processes in order to achieve this objective. At all corporate offices, production sites and logistics hub, where the amount of waste generated is significantly higher than at oth- er sites, the company implements an environmental management system certified according to the ISO 14001 standard.

In 2023 Moncler and Stone Island sent for recycling and/ or recovery approximately 89% of waste generated in Italy and at Moncler s production site in Romania. no waste generated at its cor- porate offices, production site and logistics hub was sent to landfills. This result was achieved through a series of programmes designed

28 For the direct water consumption of offices, the production site and logis- tics hub, primary data were used. For the water consumption of stores and outlets, water consumption data collected from a sample of Leed-cer- tified stores were used; water consumption indices were applied to this sample to estimate total consumption on the entire network of directly managed stores and outlets.

29 Since the Group s direct withdrawals are based on consumption simi- lar to sanitation services, practically all of the water withdrawn is in turn discharged into urban water systems. Water consumption represents the portion of water not returned to the system due to evaporation losses, mainly due to extraction and pre-sanitisation treatment and wastewa- ter treatment.

30 Indirect water consumption associated with the production and extraction of raw materials, such as cotton-cultivation, the livestock-raising phase for wool and transformation processes for synthetic fibres.

31 Indirect water consumption associated with processing such as spinning, weaving, dyeing, manufacturing, ironing, garment dyeing etc..

to maximise the material sent to recycling networks, implemented with the support of companies specialising in proper waste disposal.

In addition, the Group s offices and stores are equipped with special waste sorting containers and employees are informed of the importance of using proper practices so that waste can be re- cycled/recovered or, to a residual extent, disposed of. The sorting applies to: paper and cardboard, wood, plastic and IT equipment.

Total waste generated in 2023 was 1,809.6 tonnes (2022: 1,163.3 tonnes). The increase compared to the previous year is mainly due to the expansion of the Moncler production sites, which led to an increase in activities, an increase in the number of employ- ees (+19% vs 2022) and the opening of new stores.

WASTE GENERATED32

TONNES Moncler Group 2023 2022 20215 Non-hazardous waste 1,807.8 1,161.4 1,055.2 Paper and cardboard 647.7 472.0 442.1 Mixed packaging 333.2 248.9 191.8 Wood 254.1 177.7 180.3 Plastic 161.5 141.0 128.7 Fabric 346.5 118.3 68.7 Metal 29.2 0.5 41.0 Other 35.6 3.0 2.6 Hazardous waste 1.8 1.9 26.333 Total waste produced 1,809.6 1,163.3 1,081.5 of which recycled or recovered 89% 92% 89%

WASTE BY DESTINATION

TONNES Moncler Group 2023 2022 20215 Total waste recycled or recovered 1,614.1 1,074.3 959.9 Total waste disposed 195.5 89.0 121.6 of which landfilled - - 0.4 of which incinerated with energy recovery 182.1 85.7 97.9 of which incinerated without energy recovery 0.1 1.6 23.3 of which transferred to other disposal operations34 13.3 1.7 -

In the last years, in view of the potential negative impacts of inef- ficient, unethical waste management, the Group has implemented ad hoc procedures and processes for the management of textile materials, be they inventories, fabric scraps or unsold garments. In this regard, in 2023 the Group sent 99% of all textile waste mate- rial for recycling. This was made possible by continuous dialogue with partners and organisations to study innovative solutions and integrate recycling programmes to minimise the material sent to waste-to-energy and/or landfills.

Also in 2023, no unsold garments were sent to incineration with energy recovery or to landfill, rather, they were recycled to re- cover fabric, yarn or other materials. See also pages 161-163.

In addition, in 2023 100% of the nylon production scraps from the Group s direct sites was recycled. See also pages 72; 161-163.

For more details on the disposal method, broken down by waste type, see also page 238.

Lastly, since 2022 the Group has been a member of Re.Crea, the consortium founded by industry brands, coordinated by Camera nazionale della Moda Italiana, to manage textile and fashion prod- ucts at the end of their lives and to promote the research and devel- opment of innovative recycling solutions. See also pages 68.

32 The data refer to offices and logistics hub in Italy and production site in Romania. They do not include waste directly managed by local municipali- ties. The data do not include waste generated in stores in Group s retail network. This figure was estimated by the Group for the first time in 2023. The calculation is based on waste volume primary data collected for a sam- ple of stores subject to Leed certification. The waste relates mainly to packaging material from the products sold. The estimated total is around 442 tonnes (of which more than 87% is sent for recycling).

33 The figure includes the disposal of a chemical solution used to recover the metal tank previously held diesel to heat the production site in Romania.

34 The figure includes condensate water from air compressors and a mixed material part sent for disposal due to the emptying of a warehouse in United States.