199 ACT On CLIMATe & nATUReACT On CLIMATe & nATURe198 MONCLER GROUP 2023

The analysis of raw materials and their supply chain laid the foun- dations of a process aimed at safeguarding biodiversity, outlining a range of activities for more responsible use of natural resourc- es and for reducing the impact of the supply chain on ecosystems.

In fact, since 2021 the Group has actively involved its suppli- ers in identifying the main areas of supply of its strategic raw materi- als and quantifying, for each of them, the impact in terms of land use, climate change, water stress and land and marine pollution. The ap- proach, constantly evolving in alignment with the guidelines of the Science Based Targets for Nature (SBTn)35 and the AR3T (Avoid, Reduce, Restore and Regenerate, and Transform) framework, en- abled the identification and prioritisation of mitigation actions.

The analysis conducted by the Group in 2021 showed that the greatest biodiversity impacts are associated with animal fibres, mainly wool and cashmere, related to the use of soil during grazing. It also emerged the presence of some areas at risk of water stress along the down and cotton supply chain. On the basis of this analy- sis, the first projects were defined, both at the Group s activities and along the supply chain, aimed at minimising the impact on biodiver- sity by 2030. In particular, the Group is committed to supporting re- generative farming practices in the cotton and wool supply chains, with mitigation effects on both the impact on biodiversity and green- house gas emissions. Regenerative farming is an approach that aims to improve the health and fertility of the soil, increasing its capacity to absorb carbon from the atmosphere, while also protecting water resources and biodiversity.

In 2022 projects were identified to support regenerative prac- tices linked to the cotton and wool supply chains. In 2023 the Group took part in two specific projects related to the cotton sector: the pilot project Unlock Programme, organised by The Fashion Pact, and the Cotton 2040 project of the Ecosystem Services Market Consortium (eSMC)36, both of which aimed to provide incentives for cotton farmers to apply regenerative and low-impact farming prac- tices. At the end of the year, the Group also launched a regenerative farming project in the wool supply chain in Australia with PUR Pro- jet37, promoting the use of regenerative practices in animal rearing, with the aim of improving the farming practices used.

In view of constant improvement, thanks to the data obtained from the traceability project carried out throughout the supply chain, in 2024 the Group will update the analysis to quantify the im- pacts on biodiversity and align the methodology with the develop- ments of the new guidelines of the SBTn framework.

SAFEGUARD BIODIVERSITY

35 SBTn guidelines outline new methodologies for implementing and measur- ing targets on a scientific basis for freshwater and soil. These method- ologies, which are being validated by a small group of companies in various sectors, can then be used on a large scale by companies that wish to de- fine such targets.

36 A non-profit organisation that recognises and rewards farmers for their environmental practices.

37 An organisation active in insetting since 2008, PUR Projet is a certified B Corp and a global leader in the implementation of nature-based solutions.

THE GROUP S APPROACH TO BIODIVERSITY

ReSTORe & ReGeneRATe

RedUCe

AVOId

TRAnSFORM

2023 ReSULTS

>10% organic cotton

49% wool certified Responsible Wool Standard (RWS), Nativa or Sustainawool

Two regenerative agriculture projects launched in the cotton sector and one in the wool sector

Preparation of the Raw Materials Manual with the Group s goal of having 100% of the strategic raw materials aligned with it by 2024

Over 25% yarns and fabrics made with preferred materials

100% recycled wood used in logistics processes

Strategic raw materials traced in 2023 (2023 SS and FW collections)

100% of paper and cardboard packaging materials FSC or PeFC certified

Continuous involvement in SBTi, SBTn and Fashion Pact roundtables on climate change and biodiversity issues

ACTIOnS

Increase the use of raw materials from practices that offer opportunities to mitigate both biodiversity impacts and carbon emissions (e.g. organic and regenerative farming practices).

100% of key raw materials in line with the Raw Materials Manual by 2024, also considering requirements aimed to reduce impacts on biodiversity.

Over 50% of yarns and fabrics will be made from preferred materials by 2025, also considering reducing the use of virgin raw materials and promoting good land management practices for natural materials.

Continue using 100% recycled wood in logistics processes.

Key raw materials traced by 2023, with the aim to identify potential high-risk biodiversity areas.

Continue promoting sustainable forestry by sourcing 100% wood-pulp based packaging material (paper and cardboard) from deforestation-free supply chains certified under the Forest Stewardship Council (FSC) and/or Programme for the endorsement of Forest Certification (PeFC).

Continue participating in the Fashion Pact working groups and roundtables designed to address topics related to climate change and biodiversity.