61 ReSPOnSIBLe BUSIneSS MAnAGeMenT60 ReSPOnSIBLe BUSIneSS MAnAGeMenT MONCLER GROUP 2023

RISK deSCRIPTIOn And IMPACT MITIGATIOn ACTIOnS

Intensification of extreme and chronic climatic phenomena The progressive intensification of extreme and chronic climatic phenomena (heavy rainfall, tornadoes, heat or cold waves, storms, fires, drought phenomena, etc.) could potentially impact the physical operational sites of the Group and its supply chain, resulting in possi- ble disruption or reduction of production levels (business continuity) or a potential increase in production costs.

The Group has adopted insurance coverage aimed at limiting the economic impact of any damage caused by extreme climatic events.

For new corporate sites, the Group carried out a detailed assessment of physical climate related risks (e.g. the area s exposure to hydrogeological and geomorphological risks). Based on the results of the risk assessment, the Group adjusted the project design to minimise its exposure to the identified risks.

The Group has defined specific action plans to deal quickly and effectively with any emergency situa- tions relating to its logistics services or its supply chain in order to guarantee business continuity.

The Group has adopted a procurement strategy aimed at diversifying its supply chain as much as possi- ble both in geographical terms and in terms of inde- pendence from individual suppliers.

Increase in the cost/decrease in the availability of raw materials

Climate change such as rising temperatures and droughts could impact the production capacity of some natural raw materials. This could affect both availability and pur- chase price.

The Group has adopted a strategy to diversify its sup- ply chain so that it can effectively manage any fluc- tuations in the price/availability of raw materials in cer- tain geographic areas, while establishing long-term relationships and agreements that result in beneficial business relationships.

The Group has set strategic objectives on the use of lower-impact materials compared to the conventional options used by the Group, considering that those deriving from organic or regenerative agriculture are more resilient to climate change and their cultivation has a lower environmental impact:

50% cotton from organic/regenerative agriculture or recycled by 2025;

70% wool certified under specific standards such as Responsible Wool Standard by 2025;

The Group is always looking for new and innovative solutions on materials.

The Group carries out specific analyses to quantify the potential financial impact of an increase in the price of natural raw materials due to chronic and acute climatic events (drought, higher average temperatures). In 2023, for example, an analysis was carried out on cotton.

RISK deSCRIPTIOn And IMPACT MITIGATIOn ACTIOnS

Introduction of legislation to curb climate change The adoption of energy and climate policies to limit emissions could potentially have an impact on business in terms of taxation on generated emissions.

As recommended by the guidelines of the Science Based Targets initiative, the Group committed to reduce by 2030:

absolute scope 1 and scope 2 CO2e emissions by 70% from a 2021 base year;

scope 3 CO2e emissions per unit of product sold by 52% from a 2021 base year.

Lastly, the Group is committed to achieving net zero emissions by 2050.

In line with the Science Based Targets commitment, the Group has formulated a strategy and has already invested in operating activities:

100% renewable energy (e.g. through the purchase of energy from renewable sources, renewable energy certificates (ReCs) and guarantees of origin (GOs)) at corporate sites worldwide in 2023;

90% of low environmental impact vehicles in the Group s company car fleet worldwide by 2024 (approximately 85% in 2023);

energy efficiency initiatives: over the years, traditional lighting systems have

been replaced with Led lights and thermal insulation systems have been adopted to ensure greater energy efficiency;

application of Building Management Systems (BMS) at Moncler stores for more efficient man- agement of energy consumption;

progressive replacement of air conditioning and gas heating systems with more efficient systems;

where necessary, replacement of obsolete of- fice windows to ensure thermal insulation.

The Group is working with its supply chain to promote certification of energy/ environmental management system, the use of energy from renewable sources and the production of materials with lower-impact com- pared to the conventional options to reach over 50% of preferred 7 yarns and fabrics in 2025 collections.

Change in client purchasing dynamics The increasing sensitivity of end and wholesale clients towards companies with strong social and environmental commitments, as well as products with lower environ- mental impact, could directly reflect on purchasing pref- erences. The impact of rising average temperatures in relation to direct sales of Moncler s core products (down jackets) is not currently quantifiable. In fact, despite the increase in average seasonal temperatures and the potentially shorter winter seasons forecasted by 2050, there is also evidence of the increase in extreme weather events, as demonstrated by studies by the MIT (Massachusetts Insti- tute of Technology), nSF (national Science Foundation) and GIST (Gwangju Institute of Science and Technology). When combined, these factors appear to be difficult to evaluate in terms of potential impact.

The Group pays particular attention to create value for its clients and establish relationship of trust; to this end, a Strategic Sustainability Plan has been defined and achievement of its objectives is periodically and transparently reported in the Group s public documen- tation, which describes the Group s commitment to sustainable development and underlines how environ- mental and social responsibility are increasingly an integral part of the business model, focusing on five strategic priorities: climate change and biodiver- sity, the circular economy, responsible sourcing, valuing diversity and supporting local communities.

Over the years, Moncler s product range has been ex- panded to include, in addition to other categories, such as t-shirts, sweatshirts, knitwear, shoes and other accessories, also light jackets (100 grams) that can be used at warmer temperatures.

7 Materials that aim to deliver reduced impacts compared to the con- ventional equivalents used by the Moncler Group (for example recycled, organic, or certified according to specific standards).