Moncler

Moncler S.p.A adopts a traditional governance and control system with two bodies appointed by the Shareholders' Meeting: the Board of Directors and the Board of Statutory Auditors. The Board has 12 members (3 executive, 9 non-executive), with Remo Ruffini as Chairman and CEO. For FY2024 the female component was 42% (5 women, 7 men) and independent directors were 58% (7 of 12). Six board meetings were held in 2024 with roughly 89% average attendance. A Diversity Policy applies and induction sessions cover sustainability. The Board appoints three committees: the Control, Risks and Sustainability Committee (Gabriele Galateri di Genola as Chairman, plus Marco De Benedetti and Guido Pianaroli), the Nomination and Remuneration Committee (Diva Moriani as Chairman), and the Related Parties Committee (Alessandra Gritti as Chairman). The Board of Statutory Auditors, chaired by Riccardo Losi, has two women among three standing auditors (67%), average age 63. A Supervisory Body operates under Decree 231, and Deloitte holds the audit and assurance mandate for 2022-2030. The Sustainability Unit proposes and monitors strategy.

The Board of Directors oversees social and environmental issues and, with support from the Control, Risks and Sustainability Committee, examines and approves the Business Plan (including sustainability objectives), strategic sustainability guidelines and the Sustainability Plan, social and environmental policies, the CSRD Sustainability Statement, at least annually the results of the double materiality analysis in line with the ESRS, and the Remuneration Policy. The Board is informed at least every six months on the progress of projects contributing to the Sustainability Plan objectives. During FY2024 the Board and the Board of Statutory Auditors were provided by the Control, Risks and Sustainability Committee with a review of the new sustainability reporting regulations and the double materiality process, including an analysis of the list of relevant impacts, risks and opportunities. The Committee requests updates from the Sustainability Unit at least every six months on ESG matters and their management. To embed sustainability, the Group identified departmental Ambassadors, who raise awareness of social and environmental issues, and Sustainability data owners, responsible for the data published in the Statement and for relevant Sustainability Plan objectives.

Moncler's remuneration policy integrates sustainability objectives into both short-term and medium-to-long-term variable incentives for the Chairman and CEO, Executive Directors and strategic managers. The short-term incentive (Management By Objectives, MBO) includes an ESG indicator representing 10% of the total, based on the annual objectives of the 2020-2025 Sustainability Plan (climate, biodiversity, circular economy, responsible supply chain, diversity and local communities). The medium/long-term incentive, delivered through stock incentive plans (Long Term Incentive, LTI), includes an ESG indicator representing 15% of the total. The 2022 Performance Shares Plan (second cycle 2023-2025) sets three ESG objectives: carbon neutrality of directly managed sites (100% renewable energy, 90% low-impact fleet, compensation of residual emissions in 2025); 50% preferred nylon in 2025 collections; and Equal Pay certification for the Moncler brand in 2025. The 2024 Performance Share Plan sets three targets: 100% of management completing DE&I training by 2026, 55% preferred nylon in 2026 collections, and LEED plus WELL certification of the new headquarters by 2026. Both plans include an over-performance criterion tied to a high ESG rating (for example S&P Global, CDP, MSCI or Sustainalytics).

Moncler provides a mapping table linking the core elements of the due diligence process to the relevant paragraphs of the Sustainability Statement, in line with ESRS GOV-4. Embedding due diligence in governance, strategy and business model is covered by GOV-1, GOV-2, GOV-3 and SBM-3. Engaging with affected stakeholders across all key steps is covered by GOV-2, SBM-2, IRO-1, E1-2, S1-2, S2-1, S2-2, S4-2 and G1-1 (whistleblowing system). Identifying and assessing adverse impacts is addressed through IRO-1 (including the E1, E3 and E4 topical IRO-1 disclosures) and S2-4. Taking actions to address adverse impacts is covered by the actions and resources for climate (E1-3), water (E3-2), biodiversity (E4-3), own workforce (S1-4) and value chain workers (S2-4), plus the transition plan (E1-1) and remediation channels (S1-3, S2-3). Tracking effectiveness is addressed through the same action disclosures and the metrics and targets for climate (E1-4 to E1-7), water, biodiversity (E4-4), own workforce (S1-5 to S1-17) and value chain workers (S2-5).

The Sustainability Statement was subject to internal controls involving the data owners and the Sustainability Unit and to external controls by the auditing firm. In 2024 the Group launched a project to define a structured Internal Control System for Sustainability Reporting, developed to meet ESRS requirements and ensure accuracy and completeness of the information. The system was designed using the CoSO Internal Control Integrated Framework and fully integrated into the Group's Internal Control and Risk Management System. The project was led by the Internal Audit Function with a specialised external company and began by defining the governance model, processes, roles, tools and information flows. The scope was set through an analysis of the risk of misstatement based on four drivers: complexity, priority/materiality of the topic, ownership and potential impact of misstatement, categorising indicators into high, medium and low risk. Mitigation controls (Process Level Control, Entity Level Control and Group Wide Control) will be implemented from 2025 and recorded in a Risk & Control Matrix. From 2025 Internal Audit will run independent testing, with results reviewed regularly by the Control, Risks and Sustainability Committee. The Group plans to progressively extend the scope and number of indicators.

The Moncler Group operates the Moncler and Stone Island brands, offering technical and high-end clothing (jackets, down jackets, sweaters), accessories, footwear and bags. Collections are distributed in over 70 countries through directly operated physical and digital stores, selected multi-brand retailers, shop-in-shops and e-tailers. The Group's strategy rests on four pillars: reinterpreting luxury for new generations, fully exploiting brand potential globally, developing an omnichannel model, and promoting sustainable growth. Its business model directly controls the highest value-added phases from production to distribution, with production sites in Romania and Italy (Trebaseleghe smart factory, Padernello knitwear plant) and Stone Island development in Ravarino. Employees are distributed across EMEA with 5,429 (66% of total, Romania alone 24% of the region), Americas 576 (7%) and Asia 2,170 (27%). In 2024, 589 suppliers were involved, roughly 90% located in EMEA (primarily Italy), with the top 40 suppliers accounting for more than 50% of order value. The 2020-2025 Strategic Sustainability Plan focuses on five priorities: climate change and biodiversity, circular economy, responsible sourcing, valuing diversity and supporting communities, including science-based targets and a Net Zero by 2050 commitment.

The Group maintains ongoing dialogue with stakeholders and presents a stakeholder map, updated periodically through internal surveys, listing each group with its interaction channels and expectations. The stakeholder categories are: employees; trade union organisations and employee representatives; end clients; wholesale clients; suppliers and business partners; local communities; investors and analysts (traditional and sustainability); media; and local authorities, public authorities, regulators, trade associations and non-governmental organisations. Engagement tools include the MONVoice employee satisfaction survey, which achieved a 92% response rate involving 6,777 people, plus town halls, client feedback (VIBE), audits, roadshows and questionnaires. The Corporate Affairs & Compliance Function periodically updates the Nomination and Remuneration Committee and the Board on engagement with investors and proxy advisors on ESG topics, and the Committee analyses the MONVoice results. The Group contributes about 700,000 Euros to associations and working groups (up from 530,000 Euros in 2023), including Fondazione Altagamma, Camera Nazionale della Moda Italiana and anti-counterfeiting bodies, and has been a member of The Fashion Pact since 2019, focused on climate, biodiversity and oceans.

The Group presents the actual and potential impacts, theoretical risks (assessed without mitigation actions) and opportunities identified as relevant in the double materiality analysis, grouped by ESRS sub-topic and mapped to the Sustainability Plan's strategic priorities. For each IRO the concentration in the value chain (own operations, upstream or downstream) and the time horizon (short, medium or long term) are specified, and potential impacts are flagged. Act on Climate & Nature covers E1 climate change (scope 1, 2 and 3 emissions, physical and transition risks), E2 pollution, E3 water and E4 biodiversity. Think Circular & Bold covers E5 circular economy opportunity and S4 product compliance risk. Nurture Uniqueness covers S1 own workforce impacts and risks. Be Fair covers S2 value chain workers and G1 business conduct (animal welfare, supplier payment practices). Additional IROs include an S4 privacy risk and an entity-specific community support impact under Give Back. In total the analysis produced 29 relevant impacts, risks and opportunities. The Group found no actual financial effects on its financial position, operating result or cash flows during the reporting period, and used the phase-in option for anticipated future financial effects (paragraph 48(e)).

With the CSRD, Moncler introduced a double materiality analysis combining impact materiality (impacts on people and environment) and financial materiality (risks and opportunities affecting financial position, cash flows, access to finance or cost of capital). The Sustainability Unit, supported by a specialised firm, revised the process following EFRAG's IG1 Materiality Assessment Implementation Guidance across phases: understanding the context (activities, value chain, peer benchmarking, legislative landscape); identifying IROs from the ESRS topics list, the Enterprise Risk Management register, the 2023 Consolidated Non-Financial Statement, due diligence results and public databases; and assessing and determining relevance. Impacts were assessed on scale, scope, irremediable character (negative impacts only) and likelihood (potential impacts), while risks and opportunities were assessed on likelihood and magnitude of financial, reputational or compliance effects. Results were plotted in two separate matrices, giving significance greater weight for potential negative human rights impacts (ESRS 1 paragraph 45), with the materiality threshold set in the medium-high and high relevance areas. Internal functions and external investors and experts (via interviews) were involved. The analysis produced 29 relevant IROs across all topical standards except S3 Affected communities, plus one entity-specific topic (support to communities). Results were approved by the Strategic Committee, assessed by the Control, Risks and Sustainability Committee and approved by the Board.

Moncler provides a content index table listing the ESRS disclosure requirements fulfilled, the related obligations under other EU legislation (SFDR, Pillar 3, Benchmark Regulation and EU Climate Law) and the location of each in the Sustainability Statement. It covers the ESRS 2 general disclosures (BP-1, BP-2, GOV-1 to GOV-5, SBM-1, SBM-2, SBM-3, IRO-1, IRO-2) and the material topical standards E1 climate, E2 pollution, E3 water, E4 biodiversity, E5 circular economy, S1 own workforce, S2 value chain workers, S4 consumers and G1 business conduct. As FY2024 is the first year of ESRS reporting, the Group applied several phase-in options: SBM-1 paragraph 40 (b, c); SBM-3 future financial effects (paragraph 48(e)); anticipated financial effects for climate (E1-9), pollution (E2-6); and value chain metrics for pollution (E2-4/E2-5) and biodiversity (E4-5). Several items are marked not material by the 2024 analysis, including involvement in chemicals, controversial weapons and tobacco (SBM-1), high water stress sites and ocean policy (E3-1), water and biodiversity financial effects (E3-5, E4-6), the E4-1 biodiversity transition plan and resource inflows (E5-4).

The Moncler Group's climate strategy is a core pillar of its Sustainability Strategy, developed and approved by the Board of Directors on the proposal of the Control, Risks and Sustainability Committee. It follows a phased approach that is constantly monitored and reviewed annually, covering both the Group's own sites and the value chain, from raw material extraction to garment production, transport and end-of-life. By 2030 the Group has committed to reducing absolute scope 1 and 2 CO2e emissions by 70% (in line with the 1.5 degrees C ambition) and scope 3 CO2e emissions by 52% per product unit sold versus 2021 (in line with the Well-Below 2 degrees C ambition). These targets were formally approved by the Science Based Targets initiative (SBTi). The Group is also committed to net zero emissions across the entire value chain by 2050, structured into two phases in line with SBTi: reduce scope 1, 2 and 3 GHG emissions by 90%, and neutralise all residual emissions with carbon removals. Main decarbonisation levers are adopting renewable energy, improving operational efficiency and using preferred materials. Resources for implementation are integrated into the Group's financial planning, covering both operating costs and investments, in line with what is reported as eligible and aligned under the EU Taxonomy.

The Moncler Group's Environmental Policy, aligned with the Code of Ethics and the Supplier Code of Conduct, confirms the commitment to improve environmental performance by preventing or minimising negative impacts through a risk-based approach and the definition of targets. It sets the Group's ambitions on reducing GHG emissions (both mitigation and adaptation), protecting biodiversity, water and waste management, preferred materials and promoting a culture of sustainability. The Policy is inspired by the 2015 Paris Climate Agreement, the UN Environment Programme, the European Green Deal and the Global Compact, contributing to the UN SDGs. It applies to all own operations and encourages adoption across the supply chain, with due diligence assessing how partners manage environmental matters. On direct emissions, commitments include 100% renewable electricity for owned and directly managed sites worldwide, alignment with best environmental standards, monitoring business travel and increasing low-impact fleet vehicles, and maintaining carbon neutrality by compensating residual direct emissions through certified projects. On indirect emissions, commitments include engaging suppliers on renewable energy and science-based reductions, promoting preferred materials, reducing transport impacts and encouraging sustainable employee mobility. The Policy was approved by the Board of Directors in 2017 and updated in 2024, and is available in Italian and English.

The Group describes actions to run an effective environmental management system at directly managed sites and to reduce scope 1, 2 and 3 emissions. In 2024 it maintained ISO 14001 certification at the Romania production site, Italian corporate sites and the Castel San Giovanni logistics hub, and operates an ISO 50001 Energy Management System with a dedicated Energy Policy. Since 2023 the Group has sourced electricity only from renewable sources for directly managed sites, through photovoltaic panels (over 458 MWh at Castel San Giovanni, about 38 MWh at Ravarino), conversion of around 20 retail contracts to renewable supply, and Energy Attribute Certificates, keeping scope 2 market-based emissions at zero. Energy efficiency measures include LED lighting (over 99% of Moncler stores) and Building Management Systems. The Group holds LEED certifications (eight stores for Operations and Maintenance, 27 for Interior Design and Construction) and BREEAM In-Use Excellent for the logistics hub, and raised its low-impact fleet to 98%. As scope 3 exceeds 98% of total emissions, levers include preferred materials (about 37% recycled or organic cotton, over 50% preferred nylon, about 70% certified wool, avoiding over 10,000 tonnes CO2e), regenerative agriculture projects in Tennessee and Australia, supply chain decarbonisation across over 115 production sites, logistics optimisation and sustainable employee mobility. A dedicated supply chain decarbonisation Committee was set up in 2024, and an environmental training course was launched for all employees.

The Group's climate targets sit within the Sustainability Plan under the Act on Climate and Nature pillar and were formally approved by the Science Based Targets initiative (SBTi). The near-term targets, against a 2021 base year, are a 70% reduction in absolute scope 1 and 2 (market-based) CO2e emissions by 2030 (in line with the SBTi 1.5 degrees C ambition) and a 52% reduction in scope 3 CO2e emissions per product unit sold by 2030 (in line with the Well Below 2 degrees C ambition). The 2021 base year values are 5,065 tonnes of CO2e for scope 1 and 2 market-based (2,332 scope 1 and 2,733 scope 2) and 206,932 tonnes of CO2e for scope 3 (excluding use of sold products). In 2024, scope 1 and 2 emissions fell 6% versus 2023 (down 53% versus 2021), while absolute scope 3 fell 5% versus 2023 (up 5% versus 2021). The long-term target is Net Zero by 2050. Ongoing targets include maintaining 100% carbon neutrality and 100% renewable energy at all directly managed corporate sites worldwide, and LEED certification for new buildings and stores. The 2024 target of 90% low environmental impact vehicles in the corporate fleet was exceeded, reaching 98% hybrid and electric vehicles.

In 2024 the Moncler Group recorded total energy consumption of 62,289 MWh at its sites, an increase of about 11% from 56,341 MWh in 2023, driven by higher direct production, new buildings, a 9% larger workforce and growth of the direct store network. Total energy consumption from fossil sources was 11,558 MWh, representing 19% of the total (down from 23% in 2023), including 3,550 MWh from crude oil and petroleum products and 8,008 MWh from natural gas. Total consumption of energy from renewable sources was 50,731 MWh, representing 81% of the total (up from 77% in 2023). This comprised 50,271 MWh of purchased electricity, heat, steam and cooling from renewable sources and 460 MWh of self-generated non-fuel renewable energy from photovoltaic systems. Renewable energy generation was 496 MWh, lower than 2023 due to a temporary failure at one photovoltaic plant. There was no consumption from nuclear sources. Energy consumption from high climate impact sectors per net revenues was 20.04, up from 18.88 in 2023.

In 2024 total scope 1, 2 (market-based) and 3 emissions amounted to 230,368 tonnes of CO2e, a 5% absolute reduction versus 242,867 tonnes in 2023. On a location-based basis, total scope 1, 2 and 3 emissions were 248,126 tonnes of CO2e. Scope 1 and 2 (market-based) emissions were 2,382 tonnes of CO2e, down about 6% versus 2023 and about 53% versus 2021. Scope 1 direct emissions were 2,382 tonnes of CO2e (mainly natural gas at about 61%), while scope 2 market-based emissions from purchased electricity were 0 tonnes of CO2e, reflecting exclusive sourcing of renewable electricity; scope 2 location-based emissions were 17,758 tonnes of CO2e. Scope 3 emissions were approximately 227,986 tonnes of CO2e, down about 5% versus 2023, with roughly 70% calculated from primary data. Raw material production, textile processing and finished garment production represented about 72% of scope 3. Major categories included purchased goods and services at 163,121 tonnes, transportation and distribution at 23,329 tonnes (down more than 15%), employee commuting at 13,175 tonnes and use of sold products at 10,384 tonnes. Emissions are reported following the GHG Protocol, using IPCC AR5 global warming potential factors and covering CO2, CH4 and N2O.

In 2024 the Group maintained carbon neutrality for all directly managed sites worldwide. To do so, scope 1 and 2 (market-based) emissions were reduced by 6% versus the previous year, while unavoidable residual emissions were compensated through three projects certified on the voluntary market and focused on the circular economy and renewable energy. The first project, certified under Gold Standard, relates to the expansion of a highly energy efficient plastic waste recycling plant in Romania. The other two increase access to renewable energy: a photovoltaic plant in Mauritius certified under the Verified Carbon Standard, and an off-shore wind plant in Vietnam certified under Gold Standard. The projects also generate social benefits, including new jobs and community awareness. Carbon credits purchased outside the value chain and verified according to recognised quality standards totalled 2,400 tCO2e (down from 2,542 in 2023), all from mitigation projects and none from removal projects (0% removal, 100% mitigation). By standard, 83% were Gold Standard and 17% Verified Carbon Standard, with 42% from projects developed in the EU. In line with SBTi requirements, these carbon credits do not contribute to the Group's scope 1 and 2 emission reduction trajectories.

In 2024 the Moncler Group did not apply internal carbon pricing schemes to support decision-making or to incentivise the implementation of climate-related policies and targets.

In line with its Code of Ethics, Supplier Code of Conduct and Environmental Policy, the Group commits to complying with applicable regulations and requires suppliers to do the same, promoting high environmental standards for both direct activities and the supply chain to prevent pollution incidents and impacts on the environment and local communities. The use of chemicals is governed by the Group's Product Restricted Substances List (PRSL), which applies to products and materials, and the Manufacturing Restricted Substances List (MRSL), which applies to production processes. These lists reflect applicable laws and voluntary parameters and support a proactive approach to identifying and progressively replacing potentially hazardous chemicals. Suppliers are contractually bound to adhere to these guidelines, which are published on monclergroup.com. The MRSL was defined considering key industry standards such as Zero Discharge of Hazardous Chemicals (ZDHC), to which Stone Island has adhered since 2019, and includes further specific requirements. The PRSL was developed with support from consultants and testing and certification companies, drawing on major industry standards including the American Apparel and Footwear Association (AAFA) and the Camera Nazionale della Moda Italiana. It lists relevant chemicals and formulations, CAS registry numbers, analysis methods, detection limits and reference parameters to be complied with.

The Group monitors the application of its chemical standards along the supply chain to prevent contamination of water, sludge, materials and products. The MRSL and PRSL define the substances suppliers and sub-suppliers must monitor at various production phases, together with the reference parameters to respect, and regulate over 350 chemicals across all levels of the supply chain. Suppliers managing wet processes are encouraged to develop chemical management systems to monitor and test chemicals, wastewater, sludge, materials, components, products and treatments, including chemical inventories, batch traceability and seasonal formulation testing. Both Brands monitor compliance through a sampling procedure, with testing carried out seasonally from the materials research phase through prototyping, sampling and production. Tests on components, water, chemical formulations and finished products are conducted through ISO 17025 accredited third-party laboratories commissioned by both suppliers and the Group. Environmental compliance is also checked during ethical, social and environmental audits, which verify hazardous chemical management and storage, wastewater compliance, waste management and environmental training. In 2024, nine specific environmental audits were carried out on a sample of fabric, finishing and dyeing suppliers, and wastewater analyses were examined on 60 companies with wet processes (32 in 2023), covering fabric, dye, spinning and tanning suppliers. No critical non-compliance was found. Cultivation-phase risks are mitigated by increasing use of organically certified cotton (GOTS or OCS).

The Group aims to continue the mitigation activities described in the coming years, strengthening its commitment to monitoring and managing chemicals. This includes the continuous updating of key documents such as the MRSL and PRSL to align with evolving regulations, while maintaining a proactive approach to identifying and progressively replacing and regulating potentially hazardous chemicals.

As stated in its Code of Ethics, Environmental Policy and Supplier Code of Conduct, the Moncler Group promotes the efficient use of natural resources, including water. The Group regularly assesses water consumption at its own sites and along the supply chain and identifies potential risks associated with the scarcity, quality and quantity of water, both at its directly managed corporate sites worldwide (offices, stores, production sites and logistics hub) and along the supply chain. The Group commits to ensuring compliance with applicable environmental laws concerning water through audits conducted by independent third-party entities, and to identifying opportunities for innovation and programmes to reduce water consumption.

The Group has launched a series of activities to identify improvement actions supporting its Environmental Policy commitments. For direct consumption, it operates an ISO 14001 Environmental Management System at production sites in Italy and Romania, Italian corporate sites and the Castel San Giovanni (Piacenza) logistics hub, targeting efficient water use. Since 2021 it has pursued LEED certification for stores and new corporate buildings, which requires water-related efficiency measures. Direct water supply comes mainly from municipal aqueducts, with consumption primarily linked to sanitary facilities and, to a lesser extent, steam production for ironing and a small dyeing facility in Stone Island's prototyping department, so wastewater is comparable to residential buildings and discharged into the sewage system. The most significant water consumption occurs during the production of natural and animal-origin raw materials, while for synthetic fibres it is highest during yarn and fabric processing and dyeing. In 2024 the Group continued regenerative agriculture projects in cotton and wool supply chains to restore ecological functions and increase soil water-storage capacity, and continued a multi-year research project launched in 2022 with the Umberto Veronesi Foundation studying drought-resistant cotton varieties, including an experimental field in Milan. In 2024 it also introduced an environmental training course for all employees with a module on water resource management.

The Group aims to assess and continue the mitigation activities described in the coming years, strengthening its commitment to monitoring and managing water resources. It intends to keep refining the analyses conducted to date by enriching them with increasingly granular data, in line with compliance with the Corporate Sustainability Reporting Directive. This involves engaging upstream value-chain suppliers to collect information on water consumption in their production processes, identifying theoretical risks, finding solutions to mitigate potential impacts, and continuing to promote regenerative agriculture projects.

Since 2022 the Group has periodically assessed its impact on water resources through a water footprint analysis, carried out with a specialised external partner following the ISO 14046 standard. The method combines direct and indirect consumption data with the Available Water Remaining (AWARE) water risk index, which reflects water scarcity in each analysed geographical area, capturing both direct consumption (offices, stores, production sites, logistics hub) and indirect consumption along the supply chain during raw material extraction, production, processing and assembly. In 2024, total direct water consumption amounted to 1,057 m3, a slight increase of 6.5% versus 2023 (992 m3), driven by higher direct production, new buildings, roughly 9% workforce growth and retail expansion. Direct water withdrawals were 72,920 m3 and discharges 71,863 m3. Indirect water consumption along the supply chain for the production of finished products was 5,428,118 m3 in 2024, a 10.6% decrease versus 2023 (6,074,618 m3), of which 4,347,017 m3 for raw materials and 1,081,101 m3 for processing, driven by lower cotton use and increased use of preferred materials. In 2024 the Group integrated the water footprint with a water stress and risk assessment in Italy and Romania and for critical suppliers using the World Resources Institute Aqueduct Water Risk Atlas, which found that neither the Group's sites nor its critical suppliers are located in high water stress areas (withdrawal-to-availability ratio above 40%).

Moncler's biodiversity commitments are set out in its Environmental Policy. The Group commits to promoting the protection of natural habitats and animal welfare in the areas where its production sites and supply chains are located, recognising the importance of safeguarding ecosystems and biodiversity. It works with suppliers and external partners to assess biodiversity impacts across different stages of the supply chain by mapping the sourcing areas of strategic raw materials such as down, cotton and wool, in order to identify and manage potential issues. The policy also foresees defining and progressively implementing a biodiversity strategy aimed at avoiding operations in or near biodiversity-relevant areas, whether globally or nationally, adopting measures to minimise the intensity and extent of unavoidable impacts, and promoting the restoration of essential ecological functions in affected ecosystems where possible. This is pursued through more responsible procurement processes that favour lower-impact management practices for pastures, agricultural land and forests.

Based on its biodiversity impact analysis, the Group prioritised actions following the AR3T framework (Avoid, Reduce, Restore and Regenerate, and Transform), both in its own operations and along the supply chain. Under Restore and Regenerate, Moncler increased the use of certified lower-impact raw materials (GOTS, RegenAgri, OCS, RAS, RMS, RWS): about 37% of cotton in the 2024 collections came from organic practices (up from over 10% in 2023) and around 70% of wool was certified (up from over 45% in 2023). It supports regenerative agriculture projects in cotton (the Unlock Programme in India and the United States, involving more than 10,000 farmers, and the ESMC Cotton 2040 project) and wool (a project in Australia with PUR Projet). Under Reduce, over 43% of yarns and fabrics in 2024 collections used preferred materials (up from over 25% in 2023), and reused wood is used in logistics. Under Avoid, key raw materials are traced (over 80% by volume for nylon, polyester, cotton and wool, and 100% of down), supported by isotope and DNA testing and FSC/PEFC certification (100% of paper and cardboard). Under Transform, the Group participates in biodiversity working groups such as SBTi, SBTN and The Fashion Pact.

Biodiversity targets sit within the Group's Sustainability Plan under the Act on Climate and Nature and Think Circular and Bold pillars. In 2024 Moncler updated its analysis of the impact of strategic raw materials on biodiversity in line with the Science Based Targets for Nature. Targets include supporting zero-deforestation and sustainable forest management (all paper, cardboard and wood made from recycled/reused or FSC/PEFC certified materials, and continued EU Deforestation Regulation round tables), and launching regenerative agriculture projects in the cotton and wool supply chains, both of which progressed in 2024 through expansion of the Australian wool project with PUR Projet and continuation of the Unlock and ESMC cotton projects. Material-related targets include over 50% preferred yarns and fabrics by 2025 (over 43% achieved in 2024), 50% preferred cotton (around 37% achieved), and 70% certified wool (around 70% achieved). Following the new SBTN guidelines introduced in July 2024, the Group is updating its approach to establish a baseline for potentially defining Science Based Targets for Nature.

Moncler's resource use and circular economy policies are defined in the Environmental Policy. The Group commits to designing and manufacturing high quality products made to last, promoting circular economy models and eco-design across products and processes (selection of preferred materials, garments designed for recycling and recovery, lower-impact production and packaging, and product life-extension initiatives such as repair services), conducting annual LCA assessments in line with ISO standards, and progressively increasing the share of certified and lower-impact raw materials, prioritising the most used such as recycled nylon and preferred cotton. In 2024 the Group published its Raw Material Manual, defining shared criteria for R&D and Purchasing teams, identifying material hotspots and setting mandatory (must-have) and best-practice (good-practice) requirements. A packaging Manual, in place since 2021, guides selection of preferred materials based on reducing materials used, eco-design and mono-material or easily disassembled items, reducing virgin and fossil-based materials, designing for reuse and recyclability, and compliance with the Restricted Substances List. On waste, the policy commits to minimising waste generation, recycling and recovering non-hazardous waste, applying best practices for hazardous waste, using only authorised partners, and promoting reuse of textile production scraps.

The Group reviews the product life cycle from a circular economy perspective across products, packaging and waste. On products, it has expanded the use of preferred materials since the 2019 bio-based down jacket and the 2021 Born To Protect range; in 2024 over 43% of yarns and fabrics were lower impact, including over 50% recycled nylon, over 43% recycled polyester, around 37% organic or recycled cotton, about 70% certified wool, and 100% certified alpaca and mohair. About 80% of products have been assessed using LCA methodology (ISO 14040, 14044 and 14067). Recycling solutions include recycling more than 55% of total nylon scrap (100% at direct sites in Italy and Romania), Stone Island's Raw Beauty project producing yarns with at least 50% recycled cotton, a filtration system at the Trebaseleghe smart factory to recover down, and the patented R-DIST process that has recycled about 5 tonnes of down over three years. The Extra-Life repair service, active in all Regions, handled more than 41,000 repair requests in 2024 (about 40 tonnes), 89% of which were fulfilled. Unsold products are managed through outlets, Family and Friends sales, donations via the Warmly Moncler programme, and recycling. The Group is a member of the Re.Crea consortium and pursues open innovation with universities, start-ups and suppliers.

Targets sit within the Sustainability Plan Think Circular and Bold pillar. For lower-impact materials, the 2025 target of over 50% preferred yarns and fabrics reached over 43% in 2024; 50% preferred nylon reached over 50%; 50% preferred cotton reached around 37%; 100% mulesing-free certified merino wool reached around 93%; and 70% certified wool reached around 70%. For extending product life, the target of recycling at least 55% of nylon production scraps was met (100% of scraps recycled at own direct sites and more than 55% of total outerwear nylon scraps across the external network), and the Extra-Life advanced repair service is available in all Regions. For lower-impact packaging, all end-client packaging for Moncler and Stone Island uses preferred materials, zero single-use virgin fossil-origin plastic was maintained, and 100% of logistics packaging uses preferred materials. For sustainability culture, an environmental training programme was delivered to all employees worldwide in 2024.

The Group reports resource outflows covering products, packaging and waste. On packaging, all end-client and logistics packaging uses preferred materials. In 2024, 80% of packaging materials (logistics and end-client) were both recyclable and recycled, and 79% of end-client packaging was reusable (up from 72% in 2023). For total packaging, 72% was paper and cardboard from responsibly managed forests (FSC/PEFC), made from 84% recycled material (2,949,295 kg); around 17% was plastic (685,318 kg), 99% recycled and 1% bio-based and compostable; and 7% was wood (298,697 kg) from reused logistics pallets, with the remainder synthetic fibres (100% recycled), natural materials, metals and other. Since 2023 all single-use virgin fossil-origin plastic has been eliminated; total single-use plastic in 2024 was 503,921 kg, 99% recycled. Total paper ordered was 3,489,471 kg, 72% recycled and 100% FSC or PEFC certified. On products, circularity is supported by recycled content (recycled nylon, polyester, cotton and R-DIST down), LCA-based design and repair and recycling of unsold and end-of-life garments.

Waste disclosures are reported within E5-5 Resource outflows. In 2024 the Group generated around 1,700 tonnes of waste at its corporate offices, production sites and logistics hub, about 7% less than in 2023, with no waste sent to landfill or incineration without heat recovery. Total waste produced was 1,691.9 tonnes (2023: 1,809.6), of which non-hazardous waste was 1,688.2 tonnes and hazardous waste 3.7 tonnes. Non-hazardous waste was mainly paper and cardboard (675.2 t), mixed packaging (317.5 t), wood (260.0 t), fabric (216.8 t), plastic (148.5 t) and metal (49.9 t). By destination, 1,683.7 tonnes of non-hazardous and 2.9 tonnes of hazardous waste were diverted from disposal (non-hazardous recycling of 1,421.1 t and other recovery of 262.6 t), while 4.5 tonnes of non-hazardous and 0.8 tonnes of hazardous waste were directed to disposal. Non-recycled waste was 268.2 tonnes, equal to 16% of the total (up from 12% in 2023 due to increased mixed packaging). In 2024 the Group sent 99% of all textile waste for recycling, in line with 2023, and recycled 100% of nylon production scraps from its direct sites; no unsold garments were sent to incineration with energy recovery or to landfill. The data cover offices and the logistics hub in Italy and the production site in Romania and exclude waste managed by municipalities and retail stores (store waste separately estimated at about 1,028 tonnes).

Principles guiding the management and protection of the Group's people are set out in the Code of Ethics, the Human Rights Policy and human resources policies, aligned with the highest standards, applicable regulations and collective labour agreements. These cover recruitment, selection and hiring, health and safety, equal opportunities, growth and development, remuneration and parental leave. Specific policies include the recently updated Recruitment, Selection and Hiring Policy, the Equal Opportunity for Professional Development and Growth Policy (developed after the EDGE certification process), a remuneration system offering entry-level salaries at or above legal or collective minimums without gender differences, the Global Mobility Policy, and the New Parents Policy introduced in 2024 providing 16 weeks fully paid leave. The Occupational Health and Safety Management Policy was reviewed and approved by the Board. A Diversity, Equity and Inclusion Committee promotes diversity, and policies are monitored by the Chief People & Organisation Officer.

The Engagement & Internal Communication Department, within the People & Organisation Function, develops employee involvement strategies. In 2024 several surveys were launched, notably MONVoice, the eighth annual people satisfaction survey involving 6,777 people worldwide with a 92% response rate and a 76% engagement rate. The second Inclusion Survey gathered 4,111 responses at 57% participation, prompting the Building Bridges programme. An EDGE survey involved more than 80% of employees across seven countries. Engagement also occurs through the Sounding Board (25 participants selected from around 200 applications), Regional listening sessions on diversity, equity and inclusion, and the Thank Boss It's Friday! programme, which involved approximately 205 employees in 2024. Corporate volunteering, including partnerships with Legambiente, Officine Buone and Dynamo Camp, further engages staff. On industrial relations, the Group respects trade union representation and manages dialogue transparently.

The Moncler Group provides channels for its workforce to report concerns and activate their management, together with processes defined within the Company to address or collaborate in resolving negative impacts on workers. These channels and processes, including the whistleblowing system, are described in detail on pages 229 to 230 of the report. As reflected in the S1-5 targets, the Group launched a new internal communication campaign on the whistleblowing procedure to strengthen employee protection systems. The reporting channels feed into the incident handling described under S1-17, where reports of potential Code of Ethics violations relating to working conditions and human rights are received, analysed and investigated, with outcomes ranging from termination of employment to awareness-raising activities carried out by the Human Resources department of the relevant Regions.

Under the Nurture Uniqueness pillar of its sustainability strategy, the Group defined objectives and actions in the Sustainability Plan to maximise positive impacts and minimise potential negative impacts and risks. On recruitment, the Talent Acquisition Department revised inclusive language and internal job posting filled around 15% of positions globally at Moncler and about 10% at Stone Island. An Employee Value Proposition was defined in 2024, over 40,470 CVs were received (up 25%), around 170 internships were activated (31% converting to contracts), and a new Applicant Tracking System was implemented. Training programmes include the Leadership Academy, eMpower (875 hours, 193 participants), Connections, Building Leadership (16 managers, about 370 hours), Building Bridges, MONCampus (23 participants), MAKERS LAB (over 1,100 hours, 650+ employees) and MATE (over 19,000 hours). Development uses the PIUMA Leadership Model. Remuneration, benefits, welfare, MINDCARE (256 sessions) and health and safety actions support the workforce.

Targets sit within the Nurture Uniqueness pillar of the Sustainability Plan. On promoting an inclusive culture, the 2024 target of 100% of employees involved in a DE&I training programme was achieved, and MONCampus was extended globally. On representation, against 2025 targets of at least 50% women, 2024 results were 70% women in the total workforce, 52% in all management, 56% in junior management, 41% in top management, 55% in management of revenue-generating functions and 61% in STEM-related positions. Equal pay certification for the Moncler brand was achieved at the Italian Headquarters, with the certification process started in South Korea, Japan, Chinese mainland, France, the United States and Romania. Other actions included the whistleblowing communication campaign, the Ferie Solidali community hours bank signed in October 2024, integrating DE&I indicators into reporting, the MONVoice survey and the second Inclusion Survey, and Regional DE&I working groups.

At 31 December 2024 the Moncler Group had 8,175 employees, up 9% (655 more people) on 2023, driven by partial internalisation of production and strengthening of the retail and corporate structure. Women numbered 5,709 and men 2,466, with women representing around 70% of the workforce, in line with 2023. Geographically, EMEA including Italy holds 66% of employees; by country Italy accounts for 28% (2,282), Romania 24% (1,959), China 11% (883), Japan 9% (773) and the United States 6% (464). White-collar workers are the largest professional category at 52%, with workers growing fastest (+14%) and managers +13%. In 2024, 88% held permanent contracts (94% full-time) and fixed-term contracts were around 12%; 354 fixed-term contracts became permanent. Negative turnover was 17.8% (13.8% for permanent staff), approximately 3,029 people were hired and 2,364 left.

At the end of 2024, 406 people were employed under other forms of collaboration such as internships and temporary work, in accordance with the law and business needs, down from 555 in 2023. Around 94% of these non-employee workers were interns, considered an important source of future talent, numbering 383 (435 in 2023). Self-employed workers and workers provided by companies that mainly carry out placement activities fell sharply from 120 in 2023 to 23 in 2024, thanks to the steady stabilisation of the workforce. The reported figures do not include the category of consultants and self-employed workers who carry out regular working activity at the Group's sites.

All employees in Italy, Romania, South Korea, France, Austria, Spain, the Netherlands, Belgium, Brazil and the Czech Republic, as well as a portion of employees in Switzerland, are covered by collective bargaining agreements, giving coverage of approximately 65% of the workforce worldwide. In Italy, Romania and France, all employees are covered by workers' representatives. The Group presents coverage bands showing collective bargaining coverage of 80 to 100% for Italy, Romania, France, Austria, Spain, the Netherlands, Belgium and the Czech Republic within the European Economic Area, while EMEA countries outside the EEA and the Americas fall in the 0 to 19% band. Workplace representation of 80 to 100% within the EEA is recorded for Italy, Romania and France. The Group bases its industrial relations on constructive dialogue, and in 2024 recorded no strikes or trade union protests.

Diversity metrics are reported alongside employee characteristics. At top management level (including executives and senior executives) there were 147 people in 2024, of whom 60 were women (41% of total top management, down from 42% in 2023) and 87 were men (59%). Across the broader managerial category (managers, senior managers, executives and senior executives) women represent 52%. Women make up around 70% of the total workforce. By age group, the greatest concentration is in the 30-50 band at 58%, followed by under-30 at 27% and over-50 at 15%, with an average age of 38 years. Reported representation results include 56% women in junior management, 55% in management of revenue-generating departments and 61% in STEM-related positions, reflecting the Group's diversity, equity and inclusion commitments.

All Group employees, regardless of gender, receive entry-level salaries that are equal to or higher than the minimum required by law or collective bargaining in every country where the Group operates. This is confirmed by an annual living wage analysis conducted on the entire workforce, including the production site in Romania, according to the Fair Wage Network methodology (described on pages 202 and 206). In 2024, in all the countries where the Group operates, employees receive an average salary above the living wage. Remuneration takes into account the cost of living and essential needs to ensure a decent standard of living for employees and their families, and the Group ensures compliance with contractually agreed payment schedules, without gender-based differences including in overtime pay and benefits.

Social protection levels offered by the Group comply with the legal standards in force in the countries where it operates and are in some cases improved through specific policies. One example is the New Parents Policy, which introduces a global minimum standard providing 16 weeks of fully paid leave for all new parents employed by the Moncler and Stone Island brands, regardless of gender, marital status and sexual and affective orientation, taking into account both fixed and variable components of pay. Regarding illness, unemployment from the start of the employment relationship, workplace injuries, acquired disability and retirement, the Group adheres to local legislation to ensure coverage. In eight countries (Italy, Japan, the United Kingdom, the United Arab Emirates, Ireland, Denmark, Norway and the Netherlands) local regulations impose limitations on contribution requirements, company seniority or participation in private funds.

The Group manages the inclusion of people with disabilities in accordance with the rules and practices set by applicable laws and encourages its various departments to employ people with disabilities. Each placement is assessed by respecting and considering the needs and abilities of each individual, ensuring appropriate workstations and, where necessary, adjusting working hours so that people are protected and placed in the best position to perform. At 31 December 2024, there were 98 employees with disabilities across Italy, Romania, South Korea, Germany and China, an increase of 18% compared with 2023. In the coming years the Group plans to continue integrating additional people with varying degrees of disability, including through collaboration with institutions focused on targeted job placement.

In 2024 approximately 3 million Euros were invested in training, up 48% on 2023, and 290,537 hours of training were delivered (around 305,000 in 2023) for more than 7,607 employees (7,141 in 2023). The average hours per person were 35.5, approximately 41 for women and 23 for men. Trained people were 49% white-collar employees, 30% blue-collar workers, 11% professionals, 8% managers and 2% senior managers and executives. Technical and professional training accounted for 77% of courses, occupational health and safety for 16%, and other topics for 7%; around 6,600 hours of human rights training were delivered (+55%). On development, 7,006 people were evaluated (86% of the year-end workforce), of whom 71% were women and 29% men, equal to 100% of the eligible population, using the PIUMA Leadership Model.

All employees of Moncler and Stone Island and workers of service providers at the Group's sites (security, cleaning, porterage, maintenance) are covered by the health and safety management system under ISO 45001, giving 100% coverage in both 2023 and 2024. In 2024 there were 28 employee accidents (recordable work-related accidents), up from 22 in 2023, mainly in the retail channel. No fatal accidents were recorded among employees or service provider workers, and no cases of work-related illness occurred. The rate of recordable work-related accidents was 2.0 (1.8 in 2023), and days lost to work-related injuries totalled 1,387 (729 in 2023). Around 48,000 hours of health and safety training were delivered. At the SA8000-certified logistics hub in Castel San Giovanni, the severity rate was 0.11 and the frequency rate 3.25; the total frequency rate for all monitored suppliers was 4.25.

During 2024, 86% of Moncler Group employees were entitled to all types of family-related leave, including maternity, paternity, parental and caregiving leave. Among these employees, 577 effectively took advantage of these leave options, representing 8% of those eligible, with a distribution of 79% among female employees and 21% among male employees. The Group's commitment to supporting parenthood and work-life balance is further demonstrated by the New Parents Policy, which provides 16 weeks of fully paid leave for new parents. Most employees are entitled to family caregiving leave in accordance with national legislation in the countries where such leave is provided, and in countries where it is not mandated the Group supports employees with appropriate measures to safeguard the well-being of those who need it.

In 2024 the average gender pay gap within the Group, calculated as the average pay difference between men and women for each job level weighted according to workforce distribution across professional categories, stood at 7%. Women's salary levels showed differences of between 4% and 20% compared with men's, except in the managerial category where women's salaries are higher. Calculated as a simple arithmetic mean of salary levels, the average gender pay gap would be around 32%. Since 2023 the Group has used the EDGE methodology to conduct pay analyses, and to date unexplained gaps under the 5% threshold have been found. The ratio of the total remuneration received by the Chairman and Chief Executive Officer for 2024 to the median annual remuneration of all Group employees is 192:1 (271:1 in 2023 and 216:1 in 2022).

In 2024, 29 reports of potential violations of the Code of Ethics relating to working conditions and human rights were received through the reporting channels made available to employees, such as the whistleblowing system. Of these, seven cases were considered relevant and worthy of analysis and further investigation and concerned incidents of harassment and/or violent and/or discriminatory behaviour. Based on the investigations conducted, it was decided to terminate the employment relationship in five cases, while in the remaining two cases no disciplinary action was taken but awareness-raising activities were carried out with the concerned parties by the Human Resources department of the respective Regions. None of these incidents gave rise to fines, sanctions or compensation for damages. Finally, there were no severe human rights incidents during the year.

The Moncler and Stone Island Codes of Ethics set out shared values requiring partners to reject relationships with parties violating labour standards, with particular reference to child and forced labour and health and safety. The Group's Supplier Code of Conduct sets mandatory requirements across six sections: Labour and Human Rights (prohibiting all forced and child labour), Health and Safety, Environment, Animal Health and Welfare, Product and Service Safety and Quality, and Business Ethics, which suppliers must meet to begin or continue working with the Group. The Human Rights Policy, an integral part of the Code of Ethics prepared with technical support from the ILO, is inspired by the International Bill of Human Rights, the Universal Declaration of Human Rights, the EU Charter of Fundamental Rights, ILO conventions, OECD Guidelines for Multinational Enterprises and the UN Global Compact. All suppliers must sign these documents during contracting; approximately 90% of significant Group contracts include Code of Ethics compliance (95% for Moncler). The Board of Directors approves and supervises the documents, and Moncler publishes an annual Modern Slavery Statement.

The Group engages suppliers through multiple channels ranging from informal periodic meetings to structured institutional occasions, coordinated by the Sustainability Unit, the Operations and Supply Chain Department and the Internal Audit Function, with a dedicated web portal for suppliers. To capture the views of suppliers' employees, ethical, social and environmental audits conducted by qualified third parties include dedicated interviews with a representative sample of workers, carried out anonymously without management present. Interviews explore working conditions, respect for human rights, employee well-being, labour law compliance, awareness of grievance mechanisms, freedom of association and health and safety, with particular attention to vulnerable groups such as migrant and refugee workers. The Group also collaborates with expert organisations, including the Fair Wage Network, which annually updates its living wage database, and relies on the ILO Helpdesk for Business for guidance on international labour standards and industrial relations. This ongoing dialogue with international organisations gives the Group an up-to-date understanding of industry challenges.

The Group has adopted an integrated due diligence system aligned with OECD guidelines, covering standards and policies, risk analysis, mitigation actions, third-party compliance verification, remediation plans where needed, and whistleblowing and grievance platforms. The due diligence process verifies compliance with all human rights in the Group Human Rights Policy, including prohibition of forced labour, child labour, discrimination and human trafficking, freedom of association, collective bargaining, fair wages and working hours, and occupational health and safety, and was developed by the Sustainability Unit with the Internal Audit Function, Legal Function and Operations and Supply Chain Department. A whistleblowing system enables collection and management of reports of unlawful or non-compliant behaviour while ensuring anonymity, and can be used not only by employees but also by external parties, including value chain workers. Suppliers must display the Code of Ethics in workplaces, detailing whistleblowing channels and procedures, and the Group verifies during audits that suppliers' workers are aware of the whistleblowing system.

Ethical, social and environmental audits are conducted on potential and existing suppliers by qualified accredited third parties (including SGS, Control Union, IDFL and KPMG), using the Group's proprietary checklist benchmarked against SMETA, the Responsible Business Alliance and amfori BSCI and reviewed with ILO support. A three-year plan ensures all façon manufacturers and finished product suppliers are audited at least once every three years. In 2022-2024 Moncler conducted 794 audits covering 100% of outerwear façon manufacturer volumes, and Stone Island carried out 380 audits. In 2024 alone the Group performed 546 ethical, social and environmental audits (up from 389 in 2023 and 239 in 2022), plus 210 animal welfare and DIST traceability audits, totalling 756. Of the 546 sites audited in 2024, about 94% met the highest standards, relationships were terminated with about 3% (16 suppliers), and 104 sites had non-compliances, mainly occupational health and safety (73%). The living wage assessment with the Fair Wage Network has involved more than 16,000 workers over three years.

Targets sit under the Sustainability Plan's Be Fair pillar. On traceability, the Group achieved 100% of down suppliers compliant with the new human rights and environmental modules in the DIST Protocol, with Stone Island adopting the same modules in its RDS-certified supply chain, and key raw materials (nylon, polyester, cotton, wool and down) traced, alongside publication of the Group's Raw Material Manual and fur-free collections. On promoting a fair and safe workplace, the target of at least 80% of critical suppliers aligned with the highest social compliance standard by 2025 was exceeded, with over 95% aligned; 546 ethical, social and environmental audits were carried out and 100% of outerwear suppliers were audited on ethical and social aspects across 2022-2024. The target of 100% of critical suppliers evaluated and involved in a living wage analysis by 2025 stood at 86% at the end of 2024. Awareness-raising activities on health, safety and environmental certifications at supplier sites continued on an ongoing basis.

Policies address two material areas: data management and protection, and product compliance. In line with the Code of Ethics and Human Rights Policy, the Group protects the privacy of clients, employees, collaborators, suppliers and partners and processes personal data in compliance with applicable regulations such as the EU GDPR (Regulation 2016/679). Moncler and Stone Island have adopted internal procedures, tools and guidelines including the Data Protection Master Policy, a register of processing activities, a Data Protection Impact Assessment (DPIA) procedure, a data breach management procedure and rules on employee use of IT tools; privacy responsibilities lie with the Board of Directors. On product compliance, the Group contractually requires manufacturing partners to comply with international legislation on chemicals and performance through Compliance Specifications, which incorporate the Group's Manufacturing Restricted Substances List (MRSL) and Product Restricted Substances List (PRSL) and, for Moncler, a Manual of Performances. Responsible communication is governed by the Ethical Marketing and Advertising Policy, published in 2022, ensuring non-discriminatory messaging and special protection of minors in children's collection communications.

Listening to clients is treated as a strategic activity to mitigate risks and improve experience. The Moncler brand's global VIBE project systematically collects post-purchase feedback via a five-question survey rated 1 to 5 on aspects such as hospitality, personalisation and service; feedback appears in the Client Advisor's clienteling app, and dissatisfaction is escalated to the Store Manager. At the end of 2024 Moncler maintained a VIBE score of 94 (scale of 1 to 100), in line with 2023, and a VIBE After Sale score of 90, six points higher than 2023. Moncler operates a worldwide Client Service channel across physical and digital touchpoints, strengthened in 2024 through social media, instant messaging and web chat, supported by the MonClient clienteling app; Stone Island uses the MyStoneCompass app. Moncler also commissioned a CAWI quantitative study across seven cities involving 800 participants each, totalling 22,400 annual interviews collected anonymously. Operational responsibility spans Retail, Omnichannel, Client Service and Aftersales, and Media and Brand Partnership functions.

Clients can express opinions, raise concerns or ask questions through several channels: direct interactions with Client Advisors in person or via instant messaging, Client Service accessible through the Contact Us sections of moncler.com and stoneisland.com (telephone, email, instant messaging and live chat), and the whistleblowing channel. Reports and requests are managed by the relevant company departments with the aim of providing timely responses and effective solutions. For privacy protection specifically, both Brands have established dedicated email addresses, dpo@moncler.com and dpo@stoneisland.com, through which the respective Data Protection Officers can be contacted for information, clarifications on personal data handling, or to report privacy law violations. These are in addition to existing addresses privacy@moncler.com and privacy@stoneisland.com and dedicated addresses for each Region. Privacy reports and requests are handled in full compliance with applicable legislation and internal procedures, given the highest priority, through structured processes including thorough case analysis, implementation of corrective measures and, where necessary, prompt notification of parties concerned and competent authorities.

On data protection, the Group applies a structured approach with appointed Data Protection Officers for Moncler, Stone Island and German subsidiaries, plus a dedicated privacy and cybersecurity officer in China. A Privacy Committee established in June 2019, meeting every one to two months, coordinates information exchange, and the DPO provides periodic updates to the Control, Risks and Sustainability Committee and the Board. The Internal Audit Function continued privacy audits in 2024, including on compliance in China. In 2024 Moncler received about 1,367 requests through official channels (including GDPR Article 17 deletion and Article 15 access requests) and Stone Island about 156; no complaints were notified by the Italian Data Protection Authority under Article 77, and no disciplinary proceedings were initiated. On product compliance, the Group monitors raw materials and production processes, applies strict sampling plans and updates its MRSL and PRSL; more than 90% of 2025 collection products already contain no PFAS. Moncler's product quality department holds ISO 9001:2015 certification, and an anti-counterfeiting protocol is applied.

Targets are described qualitatively for both material sub-topics. For data management and protection, the Group commits to updating internal procedures and documents to align with regulatory developments and best practices, ensuring continuous training and specific sessions for various corporate functions, and continuing verification activities conducted by the Internal Audit function. For product compliance, the Group commits to continuing its established activities in the coming years, confirming its commitment to monitoring and managing chemical substances and continuously updating key documents such as the MRSL and PRSL in line with regulatory developments, while maintaining a proactive approach to identify and progressively replace or regulate potentially hazardous chemicals. On responsible communication, the Company aims to maintain an excellent VIBE score for 2025, consolidating performance in the range of excellence. No specific numerical target values are attached to the data protection and product compliance commitments, which are framed as ongoing continuous-improvement obligations.

The Code of Ethics is a pillar of the Group's corporate governance, applying to Moncler and Stone Island employees, suppliers, contractors, consultants and partners across all countries of operation. It sets behavioural norms covering human rights, fair competition, financial management, environmental protection, anti-corruption and anti-money laundering, and conflicts of interest. The Board of Directors adopts and amends the Code, while the Head of Corporate Affairs & Compliance monitors conduct. Corporate policies, including the Anti-Corruption Policy, form an integral part of the Codes. The Codes draw on international frameworks such as the UN International Bill of Human Rights, the Universal Declaration of Human Rights, the EU Charter of Fundamental Rights, ILO conventions and OECD Guidelines. The Code of Ethics and Anti-Corruption Model are integral to the Organisation, Management and Control Models under Legislative Decree 231/2001. A Group whistleblowing system, run by a specialised third party via web platform and phone lines available in multiple languages, protects reporters in good faith from retaliation, with the Head of Internal Audit analysing reports. Online training is provided regularly to all employees.

The Group requires suppliers to adhere to the Code of Ethics and Supplier Code of Conduct, and has adopted a Purchasing Policy under the responsibility of the Chief Corporate & Supply Officer. The Policy defines roles, responsibilities and principles for purchasing, ensuring transparency, fairness and regulatory compliance across all Group companies, and governs supplier selection, qualification and relationship management. Selection verifies ethical, legal, economic and financial reliability as well as technical, organisational and management skills, with compliance on environment, health and safety and labour rights checked through different tools. The Policy commits to respecting payment times, with particular attention to small and medium-sized enterprises (SMEs), and to collaborating on delivery planning. The Group commits to building lasting relationships and behaving responsibly if relations are interrupted. Training and capacity-building programmes cover social matters, including living wages, and environmental topics. A risk-based approach identifies critical suppliers, and a vendor rating system scores suppliers across sustainability and compliance, quality, delivery, cost, innovation and financial sustainability. Indirect suppliers undergo a qualification process in place since 2018.

Corruption prevention was not identified as relevant in the 2024 double materiality analysis, but Moncler discloses it voluntarily to ensure continuity with previous years' reporting. The Group adopts an Anti-Corruption Model, approved by the Board of Directors, based on a targeted risk assessment and regulatory analysis of corruption offences in the countries where it operates, selected using the Corruption Perception Index and invoice value. The Anti-Corruption Policy defines regulatory monitoring responsibilities, management and reporting of non-compliance cases, and specific corruption risk controls. Areas identified as theoretically exposed include relationships with public administration, suppliers and external consultants, agents and intermediaries, business partners, management of donations, sponsorships, gifts and samples, and human resources management. Model policies and procedures have been circulated globally, and all employees are regularly offered specific training on active and passive corruption, with a new e-learning platform programme introduced in 2024. The Internal Audit function periodically conducts on-site audits at Group companies, carried out annually on marketing costs, sponsorships, donations, gifts, consultants, recruitment, supplier management, payments and entertainment costs. Results are shared with the Control, Risks and Sustainability Committee and Supervisory Bodies.

Although corruption prevention was not identified as relevant in the 2024 double materiality analysis, Moncler discloses this information voluntarily to ensure continuity with prior years' reporting. The Group states that no cases of either active or passive corruption were ascertained in 2024, consistent with 2023. On broader compliance, during 2024 no final decisions were handed down against Group companies in any of the following areas: unfair competition and antitrust; product health and safety; product labelling; marketing, including advertising, promotion and sponsorship; disputes impacting the community; environment; or intellectual property. The Internal Audit function verifies compliance and reports on investigated cases to the Board of Directors at least every six months, while audit results on corruption risk controls are shared with the Control, Risks and Sustainability Committee and the Supervisory Bodies of Moncler and Stone Island. No fines or confirmed incidents are reported for the year.

Political influence and lobbying were not identified as relevant in the 2024 double materiality analysis, but Moncler addresses them voluntarily to ensure continuity with previous years' reporting. The Group states that it manages relationships with political parties and their representatives based on the highest principles of transparency and ethics. In 2024, the Moncler Group did not make any contributions to political parties, lobbying activities or any other activities beyond those with associative purposes. Political commitments and contributions made by the Group's employees are considered personal and entirely voluntary. Regarding lobbying, the Group mainly operates through industry associations, without excluding the residual possibility of directly interacting with institutions, always in accordance with the principles described and to ensure that activities and decisions taken are aligned with the Group's Environmental Policy.

The Moncler Group pays invoices according to agreed contractual terms and in compliance with market standards. For the services category, which accounts for 66% of annual invoices by value and also includes facon manufacturers, the Group pays within approximately 60 days from the invoice date, in line with the standard payment term. These practices and average payment times also apply to SMEs. In 2024, the average time taken by the Group to pay supplier invoices across all purchasing categories was 67 days. There are no currently pending legal proceedings due to payment delays.