As for indirect suppliers, that is suppliers of goods and services not related to products, in the three-year period 2018-2020 the Group finished mapping the quality, social, environmental, and health and safety certifications held by its suppliers. Of the approximately 380 principal suppliers, almost all of them have at least one certification and one third of these already have UNI ISO 45001 health and safety and/or UNI ISO 14001 environmental certification. During the year Moncler continued its efforts to raise awareness of the improvements its suppliers can achieve in connection with the certification process. It also moved forward with partner reliability checks, enhanced by findings from infor- mation providers. This was carried out by Moncler s Internal Audit department for suppliers considered to be strategic. Last but not least, the Company finished creating a sus- tainability scorecard with 20 indicators in four categories: environment, labour and human rights, health and safety, and ethics. Based on international principles, standards and guidelines such as the Global Compact, the Global Reporting Initiative, ISO 26000, and the OECD Guidelines, this tool will provide a set of parameters for evaluating and comparing the social and environmental performance of indirect suppliers by means of periodic measurement.
ANIMAL WELFARE AND TRACEABILITY
Down, the heart of every single jacket, is the most important thing to Moncler. Suppliers are not only required to meet the highest quality standards, but also to act responsibly and respect animal welfare.
To ensure animal welfare, Moncler demands and verifies that all its down suppliers comply with the strict require- ments of Moncler technical DIST Protocol (Down Integrity System and Traceability), available for consultation at dist. moncler.com. First implemented in 2015, DIST regulates farming standards, animal welfare, and down traceability and technical quality. Moncler only purchases down that is DIST-certified. Among the core principles of the Protocol that must be re- spected across the entire supply chain: down must be exclusively sourced from white geese
raised and as a by-product of the food chain; no form of live-plucking or force-feeding of animals is
permitted. Developed based on the unique features of Moncler s sup- ply chain, the Protocol is the result of an open and con- structive dialogue within the scope of a multi-stakeholder forum (established in 2014), taking into account the ex- pectations of the various stakeholders involved. It ensures a scientific and holistic approach to animal welfare and product traceability. The forum is chaired by a Professor of
Management at Ca Foscari University, Venice, who is an ex- pert on sustainability issues. Its members include Moncler officers, experts from the Department of Veterinary Medi- cine at the University of Milan, the Polish National Institute of Animal Husbandry in Kołuda Wielka, and Compassion in World Farming, an NGO dedicated to the welfare of farm animals, and representatives from certification and con- sulting firms (SGS, Control Union, IDFL and KPMG). In the firm belief that dialogue drives improvement, in February 2021 Moncler organized the seventh multi-stakeholder fo- rum where participants discussed updates to the Protocol, including a specific module on human rights and the pro- cedure for reusing and recycling DIST-certified down. Mon- cler has set a target of having 100% of its down suppliers compliant with DIST s new human rights and environment modules by 2023.
The DIST Protocol assesses animal welfare using an innovative approach. Alongside the traditional approach that focuses on the animal s environment (in terms of avail- ability of food and water, space to pasture, etc.), the Pro- tocol also provides for the careful observation of the ani- mal itself (as per recent European Commission guidelines), through the so-called Animal-Based Measures (ABMs)5. The ABMs enable the direct assessment of the animals condi- tion by observing how the geese respond to various factors within their environment (outcome approach). The DIST Protocol features nine ABMs (welfare indicators), including, among others, those designed to identify unusual behav- iour or aspects such as feather-pecking6, twisted or broken wings, feather irregularities, and abnormal beak colour. These phenomena occur when the welfare of the geese is compromised owing to a number of reasons, including high stocking density, poor diet, lack of pasture, and inappropri- ate animal management methods.
Another important and innovative indicator introduced by the Protocol regards human-animal interaction, which is assessed according to responses to a specific test (the HAR test, Estep and Hetts, 1992).
All down suppliers must scrupulously comply with Protocol requirements to ensure raw material traceability, animal welfare, and the highest quality standards at each link of the down supply chain. Moncler constantly assess- es compliance with the Protocol through stringent audits in the field throughout its almost entirely vertically-integrat- ed down supply chain. It includes various types of entities: white geese farms, abattoirs where the animals are exclu- sively slaughtered for meat production before the down is collected, and companies responsible for washing, cleaning, sorting, and processing the raw material. It also comprises façon manufacturers who produce the finished products downstream of the down purchasing process. To ensure the utmost impartiality: audits are commissioned and paid directly by Moncler,
not by the supplier;
5. Animal-Based Measures are indicators that rely on the direct observation of the animal to assess its actual conditions in relation to its ability to adapt to specific farming environments. They include physiological, pathological, and behavioural indicators. 6. Feather-pecking is an abnormal behaviour in avian species that occurs when one bird repeatedly pecks (sometimes tearing out) the feathers of another.
121120 CONSOLIDATED NON FINANCIAL STATEMENT 2020BE FAIR