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Moncler-DNF2018 EN.Pdf 1 CONTENTS LETTER TO STAKEHOLDERS THE RESULTS OF OUR EFFORTS 1. MONCLER 3. PEOPLE VALUES EMPLOYEES IN NUMBERS PHILOSOPHY Geographic areas and professional categories A HISTORY OF INNOVATION DEEPLY ROOTED Age, length of service, and education levels IN TRADITION Nationality of local management Employment contracts.............................................................. MARKET PRESENCE Turnover STRATEGY MANAGEMENT AND DEVELOPMENT FINANCIAL PERFORMANCE Recruitment Results Training Creating value for stakeholders Remuneration Benefits Development Employee engagement DIVERSITY AND EQUAL OPPORTUNITIES 2. RESPONSIBLE OCCUPATIONAL HEALTH AND SAFETY Management system From prevention to control BUSINESS Training and information Health and wellbeing MANAGEMENT INDUSTRIAL RELATIONS GOVERNANCE MODEL Corporate Governance Code of Ethics 4. PARTNERS RISK MANAGEMENT Enterprise Risk Management model Environmental, social, and compliance risks SUPPLY CHAIN PROFILE Supply Chain Excellence CREATING SUSTAINABLE VALUE Sustainability governance RESPONSIBLE SOURCING Materiality matrix Animal welfare and traceability Dialogue with stakeholders DIALOGUE TO GROW TOGETHER SUSTAINABILITY PLAN Sustainability Plan process 1 5. CLIENTS 7. COMMUNITIES CLIENT EXPERIENCE SUPPORTING LOCAL COMMUNITIES Wholesale Excellence Support to scientific research Training as a strategic asset Initiatives for the social and economic development of Listening to understand and meet client expectations local communities QUALITY Natural disaster relief Product quality and safety Down quality THE FIGHT AGAINST COUNTERFEITING TRANSPARENT AND RESPONSIBLE 8. APPENDIX COMMUNICATIONS Marketing, advertising and product information An increasingly digital dialogue GUIDE TO THE REPORT ADDITIONAL INFORMATION STATEMENT OF ASSURANCE GRI CONTENT INDEX 6. ENVIRONMENT GLOSSARY CONTACTS ENVIRONMENTAL POLICY AND MANAGEMENT SYSTEM RESOURCE MANAGEMENT AND CONSUMPTION Energy consumption and CO2 emissions Use of raw materials Waste Logistics system 2 LETTER TO STAKEHOLDERS The numbers, initiatives and objectives presented in this document tell about Moncler, our culture of sustainability, the commitment of every single person in the company, what we believe in and what we are committed to. They tell about our aspirations. They tell about the awareness that no accomplishment can be considered a point of arrival, but is only a stepping stone along a path that always aims at achieving new goals. In 2018, our commitment to pursuing some of the Sustainable Development Goals set out in the United Nations’ 2030 Agenda continued. They were the focus of our programmes, along with the safety of people, the well-being of our employees, the promotion throughout the supply chain of an increasingly responsible conduct and the consolidation of our relationship with clients. In 2018, Moncler continued to create jobs by increasing the number of employees worldwide by 19%. This growth was significant not only in numerical terms, but above all for the diversity and energy that people belonging to different generations, cultures and backgrounds bring. We have continued to work for all our people to make Moncler an increasingly stimulating company to work for. Acting on the expectations emerging from the people satisfaction survey, MonVoice, we have implemented programmes aimed at well-being, internal communication and more cross-functional and participatory ways of working together. During the year, OHSAS 18001 certification for our occupational health and safety management system was extended to all offices and stores in Europe and the United States, while our ISO 14001-certified environmental management system was extended to the Italian sites in Trebaselghe, Milan and Castel San Giovanni. Great energy has also continued to be put into sharing our high social and environmental standards with partners. We have intensified the verification, training and sharing activities to spread our culture of sustainability through an open and constructive dialogue aimed at continuous and mutual improvement. Moreover, it was the fourth consecutive year of certification of our down supply chain according to the DIST Protocol, Moncler's technical standard for animal welfare, traceability and quality, developed in collaboration with a multi-stakeholder working group that continuously monitors the results and promotes its further development. Activities in support of scientific research, local communities and the most disadvantaged populations also continued. Over the past two years, thanks to the Warmly Moncler for UNICEF project, about 25,000 children living in particularly vulnerable situations in some of the coldest areas of the world have received aid. The year 2018 also saw the consolidation of our relationship with clients: we intensified our dialogue to offer a consistent and distinctive experience at each of the brand’s touchpoints in an omni-channel perspective. Thanks to the new business model launched by the Moncler Genius project and to digital technologies, our communications are now more direct, continuous and faster and in our stores we are devoting time and attention to building an authentic and personal relationship. 3 I am grateful to our more than 4 thousand people who every day, in our offices, stores and production sites, do their best to make Moncler a company open to challenges and change, a company that is not afraid to question itself and that is constantly exploring innovative paths. Today's results and the trust we have earned from our stakeholders encourage us to continue along our path, because we believe that dedication and passion are the best foundations for building a desirable future for all. REMO RUFFINI CHAIRMAN AND CHIEF EXECUTIVE OFFICER 4 THE RESULTS OF OUR EFFORTS "WE JUDGE THE VALUE OF OUR RESULTS ALSO BY HOW WE ACHIEVED THEM, BECAUSE WE BELIEVE THAT LONG-TERM SUCCESS IS BUILT ON SHARED VALUE.” 100% of down purchased was DIST certified 100% of outerwear manufacturers audited on ethical aspects in the period 2017-2018 OHSAS 18001 health and safety certification extended to all offices and stores in Europe and United States ISO 14001 environmental certification extended to corporate offices and logistics hub in Italy 96% of stores with LED lighting(1) 54% women in management +40% in hours of training delivered to employees compared to 2017 5 +19% employees compared to 2017 89/100 VIBE SCORE which measures how willing clients are to recommend Moncler to others 2.7 MILLION Euros invested in local communities (1) Excluding the 15 shop-in-shops in which lighting is provided by the host department stores, where Moncler cannot take action. 6 1 MONCLER VALUES PHILOSOPHY A HISTORY OF INNOVATION DEEPLY ROOTED IN TRADITION MARKET PRESENCE STRATEGY FINANCIAL PERFORMANCE 7 VALUES Moncler has always stood for authenticity, excellence, innovation, and talent, for seeking challenges, and for pursuing shared and sustainable goals. These are the values at the heart of our Group. In everything it does, Moncler is driven by the desire to innovate while remaining true to itself and its heritage, to strive for continuous and uncompromising quality, and to grow through change and the pursuit of new challenging standards. The client is the cornerstone of Moncler’s business and the central focus of all decisions, while the talent of people is its most important asset. Nurturing individual talent has always been a core value of the Group, which considers its people a strategic resource, the architects of the Brand’s past success, and the key to its future growth. For this reason, the Company is always mindful that, to create long-term value, it needs to act responsibly and inclusively. AUTHENTICITY There is only one Moncler, and our task is to protect its uniqueness while always evolving. EXCELLENCE Quality is at the heart of everything Moncler does. AMBITION Moncler never stops innovating and seeking to set new challenging standards. COMMITMENT TO PEOPLE People are Moncler’s greatest asset: their future is Moncler’s future, and we are committed to their development. RESPONSIBILITY Long-term value creation can only be driven by respect and responsible behaviour. 8 PHILOSOPHY Moncler’s philosophy is inherently rooted in the Group’s values and intrinsically tied to its unique history. Over the years, the Brand has been at the centre of remarkable climbing expeditions and pioneering initiatives. Long associated with sports, mountains, outdoor activities, and nature at its purest, Moncler has consistently and faithfully based its philosophy on simple yet solid principles, summarised in the words of the Company’s Chairman and Chief Executive Officer, Remo Ruffini. “THERE IS NO PRESENT OR FUTURE WITHOUT A PAST. MONCLER IS A UNIQUE BRAND, AND ITS PRODUCTS ARE SYNONYMOUS WITH CREATIVITY, QUALITY EXCELLENCE, AND CONSTANT EVOLUTION WITHOUT EVER LOSING SIGHT OF THE BRAND’S TRUE ESSENCE” Moncler has a unique heritage and positioning. With over 65 years of history, the Brand conveys its DNA through innovative and versatile products that are inspired by values stemming from the love for sports and nature, deliver renowned elegance and quality excellence, and a lasting creative spirit. Moncler adopts an integrated business model that focuses on quality control, and directly manages and coordinates the higher value-added activities within its value chain. “THERE IS NO GROWTH WITHOUT RESPONSIBILITY AND RESPECT” Moncler judges the value of its results also by how it achieved them, believing there can be no long-term growth without
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