Environmental & Social Information • Mar 26, 2018
Environmental & Social Information
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LETTER TO STAKEHOLDERS THE RESULTS OF OUR EFFORTS
VALUES PHILOSOPHY A HISTORY OF INNOVATION DEEPLY ROOTED IN TRADITION MARKET PRESENCE STRATEGY FINANCIAL PERFORMANCE Results
Creating value for stakeholders
GOVERNANCE MODEL
Corporate Governance Code of Ethics RISK MANAGEMENT Enterprise Risk Management model
Environmental, social and compliance risks CREATING SUSTAINABLE VALUE
Sustainability governance Materiality matrix Dialogue with stakeholders SUSTAINABILITY PLAN Sustainability planning process
Geographic areas and professional categories Age, length of service, and education levels Nationality of local management Employment contracts.............................................................. Turnover
MANAGEMENT AND DEVELOPMENT
Recruitment Training Remuneration Benefits Development Employee engagement DIVERSITY AND EQUAL OPPORTUNITIES OCCUPATIONAL HEALTH AND SAFETY
Management system From prevention to control Training and information Health and wellbeing INDUSTRIAL RELATIONS
SUPPLY CHAIN PROFILE
RESPONSIBLE SOURCING Animal welfare and traceability SUPPLIER ENGAGEMENT AND DIALOGUE
Listening as the key to tuning in on client expectations QUALITY
Product quality and safety Down quality THE FIGHT AGAINST COUNTERFEITING TRANSPARENT AND RESPONSIBLE COMMUNICATIONS
Marketing, advertising, and product information An increasingly digital dialogue
ENVIRONMENTAL POLICY AND MANAGEMENT RESOURCE MANAGEMENT AND CONSUMPTION
Energy consumption and CO2 emissions Use of raw materials Waste Logistics
Support to scientific research Initiatives for the social and economic development of local communities Natural disaster relief
GUIDE TO THE REPORT ADDITIONAL INFORMATION STATEMENT OF ASSURANCE GRI-G4 CONTENT INDEX GLOSSARY CONTACTS
The year 2017 was rich in accomplishments. Once again, we have achieved brilliant results that testify to the effectiveness of our strategy and, above all, to the passion, energy and extraordinary professionalism of Moncler's people.
We are proud of these achievements, which are not a point of arrival but a stepping stone toward increasingly ambitious challenges to reach new heights. Our ability to look forward guides us toward creating value in the long run, in the awareness that our growth needs to be first and foremost sustainable and that we have a responsibility towards people, the environment, the communities in which we operate and, more in general, towards all our stakeholders.
In a scenario that is changing at an ever faster pace and that at times poses questions on sustainability for future generations, Moncler, as a multinational company, firmly believes that it is called upon to take responsibility also on issues of global relevance. We are also engaged in making our contribution to achieving the goals published in the United Nations' 2030 Agenda for Sustainable Development, which sets out the priorities for contributing to global development, promoting human well-being and protecting the environment.
In 2017, we also met all of the commitments made in the Sustainability Plan while taking further steps forward.
After its implementation in all our offices and stores in Italy, the occupational health and safety management system has been extended to our production site in Romania.
Our commitment to promoting a greater awareness of ethical and social aspects in the supply chain continued by establishing a constructive and direct dialogue with our main strategic partners. In 2017, 100% of the down purchased was certified as per DIST Protocol (Down Integrity System & Traceability), developed by Moncler to ensure respect for animal welfare, traceability and quality across the supply chain.
Clients are placed at the centre of our priorities through a comprehensive approach. In particular, we have significantly increased interaction and loyalty and consolidated Moncler's digital presence worldwide.
As evidence of our attention to the environment, we set out the Group Environmental Policy and implemented an environmental management system certified under ISO 14001 at the production site in Romania.
Moreover, our commitment to communities through scientific research, social development initiatives and emergency relief has been unwavering.
These goals were also achieved through integrated sustainability governance, with top management personally engaged, and the fundamental contribution of all 3,500 Moncler employees around the world.
The future is open to all those who know how to meet challenges, love change and innovate with passion, without ever forgetting their values and heritage. All this guides us day after day in creating value in the long run.
REMO RUFFINI
THE CHAIRMAN AND CEO
"WE JUDGE THE VALUE OF OUR RESULTS ALSO BY HOW WE ACHIEVED THEM, BECAUSE WE ARE CONVINCED THAT LONG-TERM SUCCESS DEPENDS ON KNOWING HOW TO CREATE SHARED VALUE."
100% of down purchased was DIST certified
85 AUDITS
on the down supply chain to verify compliance with the DIST Protocol
updated in line with best practices
health and safety certification obtained for production site in Romania
environmental certification obtained for production site in Romania
93% stores with LED lighting(1)
(1) Excluding the 14 shop-in-shops in which lighting is provided by the host department store, where Moncler cannot take action.
+52%
hours of training delivered to employees compared to 2016.
70 social, ethical, and environmental audits on the supply chain
investment to support communities compared to 2016
VALUES PHILOSOPHY A HISTORY OF INNOVATION DEEPLY ROOTED IN TRADITION MARKET PRESENCE STRATEGY FINANCIAL PERFORMANCE
Moncler has always stood for authenticity, excellence and talent, for seeking challenges, and for pursuing shared and sustainable goals. These are the values at the heart of the 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 pursue challenging new goals. The client is the cornerstone of Moncler's business and the central focus of all decisions, while the talent of people is the most important asset.
Nurturing that talent has always been fundamental to the Group and people are absolutely crucial to Moncler. They are the architects of the Brand's past success and the key to its future growth, so the Company is always mindful that to create long-term value, it needs to act responsibly and inclusively.
There is only one Moncler, and our task is to protect its uniqueness while always evolving
Quality is at the heart of everything Moncler does
Moncler never stops innovating and seeking to set new standards
People are Moncler's greatest asset: their future is Moncler's future, and we are committed to their development
Long-term value creation can only be driven by respect and responsible behaviour
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.
Moncler has a unique heritage and positioning. With over 60 years of history, the Brand conveys its DNA through innovative and versatile products that withstand fashion trends, and are therefore timeless. Products are inspired by values stemming from the love for sports and nature, and deliver renowned elegance and quality excellence. 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. Promoting responsibility across the supply chain is an integral part of this process.
Clients have always been pivotal in every strategic decision made by Moncler, as further confirmed in 2016 with the launch of the Retail Excellence project. The uniqueness of the Brand is reflected in every Moncler store. Its presence in the most important multi-brand and luxury department stores, the selected location of its retail stores across the most prestigious shopping streets and holiday resorts, and a distinctive store concept always consistent with its DNA yet in constant evolution, are clear expressions of the Brand's values and philosophy.
Moncler has always considered its people as a strategic asset. Motivation, determination, and innovation are qualities that the Company has long supported and nurtures constantly. Helping people to grow and develop is a fundamental part of the Group's philosophy. Moreover, it is a clear objective for senior management, led by Remo Ruffini, who has built a cohesive, highly experienced and motivated team with a proven track record of delivering significant results.
Moncler's policy is to have a direct presence in the regions in which it operates, with local management and organisational structures acting in close coordination with the Parent Company. The Company operates through its headquarters and five regional organisations (called Regions): Europe, Asia Pacific, Japan, the Americas, and South Korea. Moncler firmly believes in the importance of strengthening and consolidating its presence in each of these areas, and has always promoted the hiring of local employees and managers who understand and can better analyse trends in each market.
Moncler judges the value of its results also by how it achieved them, believing there can be no long-term growth without responsibility and respect. Which is why, a few years ago, the Company started to integrate sustainability issues into its business model and decisions.
Moncler's communication strategy is innovative and unconventional, and conveys the product's uniqueness and the Brand's values in a highly distinctive manner.
Moncler's production site in Romania is certified as per the OHSAS 18001 and ISO 14001 international standards.
Moncler updates the Group Code of Ethics in line with best practices.
Moncler completes the set-up process at the production site in Romania by hiring about 600 employees in addition to the workforce previously taken over during the acquisition process, for a total headcount of approximately 900 employees.
The Group's turnover exceeds 1 billion euros.
Moncler's offices and stores in Italy are certified as per the OHSAS 18001 international standard.
Moncler prepares its first Sustainability Report and Sustainability Plan.
A joint venture is established in South Korea, giving Moncler direct control of all markets in which it operates.
On August 31, Moncler finalises the acquisition of a first production site in Romania, where it intends to create an industrial and technological R&D hub for down jackets and vertically integrate part of its production.
Moncler supplies the technical gear for the K2 - 60 Years Later expedition, celebrating the 60th anniversary since the Italian conquest of K2.
In December 2013, Moncler is listed on the Italian Stock Exchange operated by Borsa Italiana S.p.A., with a listing price of €10.20 per share.
Moncler opens its very first urban store, on the central Rue du Faubourg Saint-Honoré in Paris.
In the years following, other Moncler stores open on luxury shopping and high fashion streets around the world, starting in Milan (2008), New York (2010), and Hong Kong (2012).
Remo Ruffini acquires Group shares, marking the beginning of a brand repositioning process focusing on the creation of unique, premium quality, and timeless products that are versatile, innovative, and designed to be worn on any occasion.
Moncler products become popular in day-to-day urban contexts, sparking a true fashion craze among younger consumers, especially in Italy, France, and Japan.
Moncler becomes the official supplier of the French Alpine ski team at the Winter Olympics in Grenoble.
Moncler manufactures its first nylon down jacket.
Moncler products are chosen by the Italian expedition to K2 and, in 1955, by the French expedition to Makalu.
On the mountains near Grenoble, in Monestier-de-Clermont, René Ramillon and André Vincent establish the Moncler brand, dedicated to mountain sports clothing.
Moncler is present in more than 70 markets worldwide, through a retail distribution channel consisting of mono-brand Directly Operated Stores (DOS) and an online store, and a wholesale distribution channel consisting of multi-brand and mono-brand stores run by third parties within department stores (shop-inshops).
The Group operates in local markets through five regional organisations: EMEA, Asia Pacific, Japan, the Americas, and South Korea.
In recent years, the business has grown mainly through the retail channel, which in 2017 accounted for 75% of consolidated revenues, up 19% at constant exchange rates. Now active in 35 markets, the online store (www.moncler.com) is becoming increasingly important within the retail channel. The wholesale channel, which is of strategic importance to Moncler's business, grew by 10% at constant exchange rates in 2017, also through the development of mono-brand wholesale stores and online business on selected luxury platforms (high-end e-tailers).
At December 31, 2017, Moncler had 201 mono-brand retail stores and 59 mono-brand wholesale stores (shop-in-shops), 11 and 17 more respectively compared to the year before.
| Net Openings | |||
|---|---|---|---|
| 31/12/2017 | 31/12/2016 | FY 2017 | |
| Italy | 21 | 19 | 2 |
| EMEA (excl. Italy) | 59 | 55 | 4 |
| Asia and Rest of the | 96 | 93 | 3 |
| World | |||
| Americas | 25 | 23 | 2 |
| Mono-brand retail | 201 | 190 | 11 |
| Mono-brand wholesale | 59 | 42 | 17 |
| Revenues | % | Change vs. 2016 | Change vs. 2016 | |
|---|---|---|---|---|
| (at current | (at constant | |||
| exchange rate) | exchange rate) | |||
| Italy | 149.3 | 13 | +4% | +4% |
| EMEA (excl. Italy) | 352.4 | 30 | +16% | +19% |
| Asia and Rest of the | 495.5 | 41 | +18% | +20% |
| World | ||||
| Americas | 196.5 | 16 | +12% | +14% |
| Total | 1,193.7 | 100 | +15% | +17% |
Moncler's goal is to pursue sustainable and responsible growth within the global luxury goods segment, while remaining faithful to its unique heritage.
Creativity, multiplicity, and consistency have always been the creed of the Group, which leverages change to grow stronger as it continues to explore both known and new avenues, seeking constant dialogue with an ever-broader client base.
Moncler strategy is strictly related to the Group's philosophy and values, underpinned by six pillars.
Moncler's unique heritage represents its main asset and permeates its entire strategy. Heritage, quality, uniqueness, creativity and consistency define and characterise Moncler's products, making them timeless.
In recent years, Moncler's growth strategy has been inspired by two key principles, clearly devised and strongly endorsed by the Company's Chairman and CEO, Remo Ruffini: to become a global brand and to have no filters with the market. Today, 87% of Moncler's revenues are generated outside of Italy. This result was achieved by exercising significant control over the business and by maintaining direct contact with wholesale, retail, and digital clients alike.
Thanks to its strong tradition and credibility built over the years, Moncler has consolidated its position as a worldwide leader in the premium down jacket segment. The Group is now selectively expanding beyond its core business, into complementary product and market segments in which it has, or can surely achieve, high recognition and in-depth know-how. "To create special products with a specialist's approach" is the motto that drives and steers Moncler's present and future.
Engaging directly with clients through every channel and touch point, involving them, and understanding their expectations – even when unspoken – is a cornerstone of the relationship that Moncler strives to develop with its clients to never stop surprising them.
Moncler considers digital channels as a crucial and indispensable tool for brand communications and business growth at global level, in an omni-channel perspective.
For some years now, the Group has created a digital division that reports to Moncler's Chief Marketing & Operating Officer and is responsible for both e-commerce and digital marketing to develop online business and boost the presence of the Moncler brand on all major social media.
The Brand has been progressively strengthening its commitment to long-term sustainable and responsible growth, as a means to further meet stakeholder expectations and create shared value.
IN 2017, ONCE AGAIN, MONCLER REPORTED A DOUBLE-DIGIT GROWTH IN ITS FINANCIAL RESULTS, DRIVEN BY BOTH DISTRIBUTION CHANNELS AND BY ALL GEOGRAPHIC AREAS.
Revenues reached 1,193.7 million euros, a 15% increase at current exchange rates and 17% at constant exchange rates. This performance was driven by both the retail channel (+17% at current exchange rates compared to 2016) and the wholesale channel (+9% at current exchange rates compared to last year). In particular, the retail channel benefited from a significant organic growth in stores and on the online channel (+14% in comparable stores sales growth(1) ) and from the opening of new stores and relocations/expansions of existing ones.
Results in all geographical areas in which Moncler operates were significant, both in the domestic market and abroad. International markets grew by 16% accounting for 87% of consolidated revenues in FY 2017, with double-digit growth in all areas (EMEA, Asia and Rest of the World, Americas).
EBITDA(2) reached 411.6 million euros, representing a margin of 34.5% of revenues, up from 34.1% the year before. EBIT totaled 340.9 million euros with margin at 28.6%, unchanged compared to the year before.
Group revenues totaled 249.7 million euros, an increase of approximately 27% compared to 2016.
In 2017, capital expenditure amounted to 72.5 million euros and was mainly related to retail business development, while net working capital at 31 December 2017 was 89.7 million euros, equal to 8% of revenues in the last 12 months, down 10% compared to 31 December 2016. In addition, in 2017, Moncler generated 244.3 million euros in free cash flow and 199.1 million euros in net cash, with a net financial position at 31 December 2017 of 304.9 million euros.
(1) Increase in the sales revenues of retail stores (DOS) open for at least 52 weeks. The figure includes online sales but excludes outlets and stores that have been relocated or extended. (2) EBITDA Adjusted: operating income before depreciation, amortisation, and costs related to share incentive plans.
(Million euros)
(Million euros)
(Million euros)
(Million euros)
(3) EBITDA Adjusted: operating income before depreciation, amortisation and non-recurring costs.
(Million euros)
(Million euros)
(Million euros)
2013 2014 2015 2016 2017
244.3
(4) Net of asset disposal.
0
The economic value generated and distributed by a company represents its ability to create wealth and to share it among its stakeholders. In 2017, Moncler generated an economic value of 1,196.5 million euros, a 14% increase compared to 2016. The economic value distributed by the Group rose from 845.1 million euros in 2016 to 968.3 million euros in 2017, up by approximately 15%. An 81% share of the value generated by the Group was distributed to internal and external stakeholders, while the remaining 19% was retained by the Company.
(5) The figure refers to suppliers of goods and services.
(6) The economic value distributed to the public administration also includes deferred taxes.
(Thousand euros)
| 2017 | 2016 | |
|---|---|---|
| Economic value generated by the Group | 1,196,561 | 1,045,900 |
| Revenues | 1,193,704 | 1,040,311 |
| Other earnings | 7,733 | 7,801 |
| Financial income | 558 | 492 |
| Value adjustments of financial assets | - | - |
| Writedown of receivables | (1,783) | (1,527) |
| Exchange rate gains (losses) | (3,841) | (1,851) |
| Gains (losses) from disposal of tangible and intangible assets | 190 | 674 |
| Value adjustments of tangible and intangible assets | - | - |
| Economic value distributed by the Group | 968,354 | 845,155 |
| Economic value distributed to suppliers (7) | 643,871 | 574,394 |
| Economic value distributed to employees | 160,896 | 128,798 |
| Economic value distributed to lenders | 1,899 | 3,233 |
| Economic value distributed to shareholders (8) | 70,778 | 45,582 |
| Economic value distributed to the public administration (9) | 88,711 | 91,780 |
| Economic value distributed to communities | 2,200 | 1,368 |
| Economic value retained by the Group | 228,206 | 200,745 |
| Amortisation and depreciation | 47,274 | 41,635 |
| Provisions | 1,942 | 8,369 |
| Reserves | 178,990 | 150,741 |
(7) The figure refers to suppliers of goods and services.
(8) In 2017, the amount was estimated based on the suggested dividend. The 2016 amount was adjusted based on the actual dividend paid.
(9) The economic value distributed to the public administration also includes deferred taxes.
GOVERNANCE MODEL RISK MANAGEMENT CREATING SUSTAINABLE VALUE SUSTAINABILITY PLAN
SOUND CORPORATE GOVERNANCE, INTEGRATED RISK MANAGEMENT, DIALOGUE WITH STAKEHOLDERS, AND CLEAR AND TRANSPARENT OBJECTIVES SHOULD BE THE CORNERSTONES OF ANY LARGE COMPANY IN ITS DAILY ACTIVITIES.
THE TRUE LASTING VALUE OF A COMPANY LIES IN THE WAY IT CONDUCTS BUSINESS, ITS CONTRIBUTION TO SOCIETY AS A WHOLE, AND ITS ABILITY TO FULFIL ITS COMMITMENTS.
The corporate governance system adopted by Moncler plays a key role in the transparent and responsible running of business operations. It contributes significantly to the creation of sustainable medium and longterm value both for shareholders and stakeholders in keeping with the best corporate sustainability practices that can be applied in all the countries in which the Group operates.
The system complies with the principles set forth in the Corporate Governance Code for Italian Listed Companies issued by Borsa Italiana and adopted by Moncler and with the regulatory provisions governing Italian listed companies. It is built on four pillars:
The values set out in Moncler's Code of Ethics commit all employees to ensure that the Group's activities are carried out in compliance with the law, within a framework of fair competition, honesty, integrity and fairness, respecting the legitimate interests of shareholders, employees, clients, suppliers, commercial and financial partners, and the communities of the countries in which the Moncler Group is present. See also page 27.
Moncler implements a traditional administration and control system as provided for by articles 2380-bis et seq. of the Italian Civil Code. It ensures continuous dialogue between management and shareholders as follows:
operations; (iii) the procedures adopted by the Company to effectively implement the corporate governance rules set out in the codes of conduct that it has publicly claimed to adopt; and (iv) the effectiveness of the internal audit and risk management system, the auditing of accounts, and the autonomy of the external auditor;
• the independent auditors carry out the statutory auditing of accounts. They are appointed by the Shareholders' Meeting and in accordance with the bylaws, upon proposal of the Board of Statutory Auditors. Pursuant to the Civil Code, the external auditor operates independently and autonomously and therefore does not represent either the minority or majority of shareholders.
Moreover, the Supervisory Body was set up within the Internal Control and Risk Management System adopted by Moncler. It is a collegial body consisting of 3 members that reports directly to the Board of Directors and monitors whether the rules, mechanisms and internal controls in place in the Group are adequate for the purposes of Legislative Decree 231/2001 as amended. The Head of the Internal Audit division (third-level control), the Head of the Group Compliance function (second-level control), and the Director in charge of the Internal Control and Risk Management System also participate in the internal control and risk management system. See also page 32.
At 31 December 2017, Moncler's Board of Directors, including the Chairman, consisted of 11 members, of whom 6 were independent. With regard to the powers assigned to the members of the Board, there are 3 Executive and 8 Non-Executive Directors. Moncler believes that a Board of Directors composed of members of different ethnicity, gender and age, with a broad range of skills, and from the most diverse professional and cultural backgrounds can assure that the best decisions will be made for a Group operating at an international level. See also the Moncler Corporate Governance Report 2017.
The Chairman and Chief Executive Officer, Remo Ruffini, is also assisted in the definition and implementation of Group strategy by a Strategic Committee, which has advisory functions and bridges the main areas of the Group, ensuring consistency and the sharing of Moncler's guiding values.
In 2017, average attendance at Board meetings was 89%.
Moncler's Code of Ethics and corporate policies are one of the four pillars of its corporate governance system. They govern the decisions and conduct of both the Group and its employees towards stakeholders.
The Code represents the set of values that the Group identifies with, shares, and promotes, in the belief that a conduct inspired by principles of diligence, honesty, and loyalty can significantly drive economic and social growth. Moncler calls on all its employees and collaborators to act with honesty, passion, and integrity, and build relationships with stakeholders based on mutual trust, so that growth may be steered by the principle of shared value.
In 2017, a comprehensive update was carried out on the Code to align the document with the best international practices and to better integrate sustainability issues and anti-corruption guidelines. The Code of Ethics takes inspiration from the main regulations, guidelines and standards in force at national and international level on corporate social responsibility, corporate governance, human rights and the environment, such as the United Nations Universal Declaration of Human Rights, the Charter of fundamental rights of the European Union, decent work standards set out in ILO (International Labour Organisation) conventions, and OECD (Organisation for Economic Cooperation and Development) Guidelines for Multinational Enterprises. The Code of Ethics also enshrines the key principles set out both in the Supplier Code of Conduct, adopted by the Group, and in company policies, including: the Anti-corruption Policy, the Environmental Policy, the Health and Safety Management Policy, the Group's policies on taxation, the management of human and financial resources, and asset protection.
The Code of Ethics is applied uniformly across all countries in which the Group is present. It consists of a set of principles and guidelines that inspire and guide the way the Company operates each day, as well as the conduct of its employees and of those who collaborate with Moncler, in any capacity, in carrying out their tasks and responsibilities. The Code is duly shared with employees using the most appropriate means and in accordance with local standards and customs. It is available in both Italian and English, and can be downloaded from the Group's intranet portal and corporate website. In June 2014, an online and classroombased training programme was launched for all employees in Italy to ensure widespread dissemination of the Code's principles, their proper understanding, and the development of virtuous behaviours, as identified by the Code of Ethics.
The Code is also a fundamental and integral part of the Organisation, Management, and Control Model (hereinafter the Model) adopted by Moncler in accordance with Italian Legislative Decree 231/2001. The Model sets forth the principles, rules of conduct, operating procedures, and disciplinary code devised to prevent corporate crime and ensure the ethical conduct of all those who act on behalf of the Company, upholding the principles of legitimacy, fairness, and transparency.
Compliance with the Code of Ethics and the Model is monitored by designated supervisory bodies through audits and specific checks, which may also take place based on reported behaviour that does not comply with the principles of conduct required by Moncler. Audit findings may require disciplinary actions that, depending on the severity of the case, can also lead to the termination of employment. The Supervisory Body in Italy is tasked with supervising the suitability of, and compliance with, the Organisation, Management, and Control Model and its underlying principles. It is a collegial body consisting of three members – two external professionals with accounting and legal expertise and the head of the Group's Internal Audit division. The Supervisory Body holds a high position in the Company's organisational structure and reports directly to the Board of Directors to ensure its independence from any form of potential interference or conditioning.
In 2017, an assessment of risks and corporate processes was conducted and its results will be used in the early months of 2018 to the update of Moncler's Organisation, Management, and Control Model in accordance with the new offences recently introduced under Legislative Decree 231/2001, concerning illicit brokering and the exploitation of labour, racism, and xenophobia, as well as new regulations on whistleblowing and some changes concerning corruption between private persons. Following the assessment, there were no instances requiring significant corrective measures.
The audits performed in 2017 by the Internal Audit division on the Group's Italian companies focused on key corporate processes (payments, purchases, services and consulting, product shortages, quality control, credit management, recruiting, etc.) and on the main 'sensitive' areas identified by the Model. With regard to international subsidiaries, in 2017 the Internal Audit division audited Group companies in the United States, South Korea, Japan, China, Hong Kong, and France, focusing on the suitability of internal control and financial reporting procedures, with the aim to identify and/or prevent any potential cases of fraud. With regard to the management of store operations (receipts and sales management, stock management, protection of corporate assets, and theft prevention), in 2017 the Internal Audit division audited 49 stores, selected on the basis of turnover, risk level, and geographic diversification. The audits made it possible to verify, and implement improvements to, existing operating and control procedures.
In 2017, no breaches of the Code of Ethics were reported. Moncler considers the reporting of particular instances of non-compliance with the Code of Ethics – whether by employees or external entities – a serious matter. Any employee reporting a concern in good faith regarding suspicious, alleged or actual breaches of the Code of Ethics is protected by Moncler against any form of retaliation, discrimination or penalisation, without prejudice to statutory obligations in force or to the rights of the Company or people falsely or mistakenly accused of misconduct.
To this end, a Group-wide whistleblowing system was launched in March 2016, devised to ensure the proper management and timely verification of any reported breaches to rules, regulations and internal procedures, the adoption of appropriate measures, and the anonymity of the whistleblower. In late 2017, in an effort to further consolidate the internal whistleblowing process, also in compliance with recent legislation on whistleblowing, Moncler launched a study for the adoption of an ad-hoc web platform and telephone lines to be managed by a specialised independent supplier—in order to manage and record any reports from employees, suppliers, clients, and counterparts of all Group companies. This system will enter into force by mid-2018.
A single report was received through the whistleblowing system. It was timely analysed, assessed, and managed through an ad-hoc audit. It was carried out at the production site of a foreign supplier and did not confirm the allegations of the report received, nor did it find any evidence of breaches of the Codes adopted by Moncler and made binding also on suppliers. Therefore, no specific action was taken against the supplier.
To this end, in 2016, the Group also adopted a Supplier Code of Conduct. It addresses Moncler's expectations regarding responsible sourcing and consists of six sections describing the binding provisions related to: Labour and Human Rights, Occupational Health and Safety, Environment, Animal Health and Welfare, Safety and Quality of Products and Services, and Corporate Ethics and Intellectual Property Protection. Moncler requires its suppliers and subcontractors to comply with the binding principles set forth in the Code of Conduct and is also committed to carrying out training and awareness-raising activities on these provisions for internal departments and suppliers alike. The Group also conducts regular audits along the supply chain to verify compliance with the principles set out in the Code of Conduct. See also pages 74- 75.
In 2017, Moncler developed an Anti-Corruption Model. As part of this effort, it carried out a targeted risk assessment and regulatory review on corruption offences in the countries in which the Group operates based on the level of revenues and on each country's Corruption Perception Index (CPI). The areas at theoretical risk of corruption and existing internal controls, including those in need of improvement, were identified and an Anti-Corruption Policy was drawn up.
This Policy, approved by the Board of Directors, testifies to Moncler's steadfast commitment to fighting all forms of corruption in all the countries in which the Group operates and to set out specific rules to prevent, identify, and manage corruption risks. Specifically, the Anti-Corruption Policy sets out: (i) responsibilities for monitoring regulations; (ii) methods for the management and reporting of noncompliances; and (iii) specific measures to control the risk of corruption.
Moncler is fully aware that the first and foremost element in developing an effective strategy to fight corruption is a thorough knowledge of the available means of prevention and has set the goal of implementing a training programme for the Group's entire workforce. It will be delivered in 2018 through an online course.
The Company is committed to carrying out an annual risk assessment with Group companies to update the corruption risk profiles identified.
Following the first assessment carried out in 2017, the following areas were identified as theoretically exposed to a risk of corruption:
Each of these areas is extensively illustrated in the Anti-Corruption Policy and has also been addressed in the Group Code of Ethics, which was updated during the year to provide more detailed guidance on the conduct to be held. Moreover, Moncler's Internal Audit function carries out periodic audits to verify the adoption of controls to mitigate the risk of corruption in the areas identified as those most at risk. Annual audits are carried out on sponsorships, donations and gifts, management of consulting and professional assignments, acquisition and management of public grants and financing, recruitment of employees, supplier management, payments, expenses, and entertainment expenses. In 2017, no cases of corruption were reported.
Moncler has adopted an integrated Enterprise Risk Management (ERM) system based on international best practices. The system involves the Group's governance bodies, each acting within the scope of its respective competence. In line with the field's guidelines and best practices of reference, the main objective of ERM is to ensure the effective identification, measurement, management, and monitoring of risks.
The ERM system covers all types of risk that can potentially affect the achievement of strategic objectives, impair company assets, and/or undermine the value of the Brand. ERM is incorporated into strategic decisions and key decision-making processes.
Risks may be internal or external depending on whether they are identified within or outside the Company. In particular, external risks are linked to industry and market situations, as well as to the stakeholders' perception of how Moncler operates. Moncler's ERM system divides risks into four categories:
Strategic risks relate to changes in business or to inadequate responses to changes in the competitive environment. Sustainability risks fall within this risk category.
Business risks are associated with the sector of reference and company operations.
Business support risks concern the Group's organisational structure, control processes, and IT and reporting systems.
Generally speaking, compliance risks are connected with breaches of internal procedures, laws, and regulations applicable to company operations at national or international level.
With regard to internal risks, the objective of the ERM system is to manage them through specific prevention and control measures incorporated into company processes, designed to eliminate the risk, minimise its likelihood of occurrence, or contain its impact in the event of occurrence. With regard to external risks, the ERM system aims to monitor them and mitigate their impact in the event of any occurrence.
For each business area in which a risk has been identified, there is a 'risk owner' responsible for managing the risk and the related control system, and for implementing or improving mitigation measures. All risks and related mitigation actions are recorded in a Risks Register, which is updated regularly (in concert with risk owners) on the basis of an annual plan approved by the Board of Directors with the support of the Control, Risks, and Sustainability Committee. The plan is periodically updated to include any new elements of risk and/or to reflect any increases in the likelihood of occurrences or in the extent of impacts.
In 2017, the ERM model was updated to include the Human Resources Management area and the production process at the site in Romania and was further expanded based on the analysis of cyber risks in the Group's IT systems and processes. A detailed analysis was also conducted on the risks associated with: operations (with a focus on the supply chain); the retail, wholesale, and logistics areas, and the remaining risks of the IT area; and the business support processes of the administration and control, treasury, and legal divisions. The results of ERM activities are reviewed half-yearly by the Control, Risks, and Sustainability Committee, and by the Board of Directors, as part of the report by the Head of the Internal Audit division on the suitability and effectiveness of the internal control and risk management system. Moncler's ERM system involves the following governance bodies:
See also page 26.
Moncler has operations in several countries around the world and in each of these it is committed to the respect of people and human rights and to compliance with laws. It firmly believes that these are the prerequisites for truly responsible management of its business. To this end, it implements the necessary policies, carries out due diligence activities and appropriate checks and provides training and information on these issues to minimise the emergence of any related risks. These risks are described in Moncler's Enterprise Risk Management model, which indicates the probability of occurrence and level of impact for each.
As regards our people, Moncler has identified, in particular, the reliance on key figures and the difficulty to retain and develop talent among the main risks in the human resource management area. A performance evaluation system has been implemented to tackle these risks. It covers the Group's entire workforce (excluding workers) and takes into account both soft and hard skills. The system is designed to leverage and develop individual skills in the medium and long term, chart out succession plans, and nurture the best talent. See also page 61. The Group has also developed an incentive plan specifically aimed at managers and key personnel to facilitate retention. See also page 59. Finally, with the aim of creating a more attractive work environment, Moncler has implemented a welfare plan for its employees in corporate offices in Italy and specific initiatives aimed at promoting the wellbeing of employees at the production site in Romania. See also page 60.
The risk of human rights violations against the employees of Group companies is considered solely at a theoretical level, by virtue of the protections provided for both by law and/or collective labour agreements and by the working standards set out in Moncler's Code of Ethics and by the oversight activities carried out by the corporate offices. Moncler has adopted a Groupwide Personnel Search and Recruitment Policy to assure that it has a robust process for selecting and recruiting personnel while guaranteeing equal opportunities. The Group also provides its people with a whistleblowing system to enable anyone to report violations. To date, no human rights violations have been reported. See also page 29.
Moncler's business model provides that only part of the manufacturing activities for its products is carried out in-house, at our production site in Romania, and that the remaining activities are contracted out mainly to façon manufacturers and finished product suppliers in Italy and abroad.
The Group purchases raw materials from a large number of suppliers around the world and relies on the services provided by companies not belonging to the Group. The great variety of our partners and the geographical scope in which Moncler operates have led the Group to make huge investments in the prevention and monitoring of the risk of possible human rights violations along the supply chain, with a particular focus on façon manufacturers, specialised workshops, and the most important logistics operators.
Moncler conducts regular audits, also through certified specialised firms, on compliance by the supply chain with applicable laws and the principles set out in the Code of Ethics and the Supplier Code of Conduct. More specifically, these set out binding standards of conduct to be held by suppliers and provide that any violation will result in the termination of collaboration. The Group is also committed to raising awareness, through training, among its partners on the importance of the principles of responsible sourcing. See also page 78.
Moncler pays particular attention to environmental aspects in the conduct of its business, although its most significant environmental impacts are indirect. Therefore, the Group has set out rules, processes and control activities to prevent and manage any environmental risk linked to its suppliers of raw materials and manufacturing services who are called upon to adopt the Group Code of Ethics and Supplier Code of Conduct. Compliance with the binding provisions contained in these documents is monitored through environmental audits carried out by specialised third parties. See also page 75.
Moncler is engaged in numerous initiatives to minimise its direct environmental impacts, both through the adoption of an Environmental Policy and the implementation of an environmental management system aimed at reducing paper, toner, and energy consumption, and at promoting waste sorting by engaging, and raising awareness among, employees. In 2017, Moncler obtained ISO 14001 certification for its production site in Romania and aims to extend this certification to its corporate offices in Italy by the end of 2018. See also page 91.
Moncler has also adopted a Groupwide compliance procedure to: (i) disseminate the meaning of compliance at Moncler; (ii) determine the areas of application; (iii) establish the general compliance principles adopted by Moncler; (iv) define employee roles and responsibilities; and (v) provide guidelines based on the pillars of the updated Group Compliance Program.
Since its creation in 2016, the Group's Compliance function has been engaged in activities aimed at strengthening the non-conformity risk monitoring and management system, starting from those areas that are considered to be most sensitive, such as antitrust, health and safety, privacy, and anti-corruption issues.
For instance, as regards antitrust issues, Moncler has drawn up and adopted a Group Compliance Antitrust Program, consisting of an Antitrust Policy, an Antitrust Compliance Manual and a Vademecum. These documents have been disseminated among all Group employees to minimise the risk that their conduct (whether active and/or through omissions) may result in unlawful behaviour.
Moncler considers the promotion of health, safety and wellbeing of people as a value and key priority of its operations. In keeping with this belief, it has implemented an effective management system in compliance with the OHSAS 18001 international standard, which provides for the application of uniform management rules, detailed in the Health and Safety Management Policy, as well as for periodic checks in all workplaces where the Group's employees work (offices, stores, showrooms, and logistics and production sites). Bolstered by training and awareness-raising activities among Moncler personnel and suppliers, the management system is the centrepiece of the Group's strategy to mitigate the risk of workplace accidents. See also page 66.
The Moncler Group has always been very attentive to privacy issues. In addition to having strengthened the relevant section of its Code of Ethics, it has done the groundwork necessary to adapt its model to the new European regulation that will enter into force in May 2018.
With regard to corruption prevention, Moncler has developed and adopted an Anti-Corruption Model, which provides, inter alia, for a regulatory review of corruption offences in the countries in which the Company operates, identifying the areas and business processes most at risk of corruption. An Anti-Corruption Policy has therefore been drawn up and adopted by each company of the Moncler Group. It sets out the responsibilities for monitoring regulatory changes, risk controls, training, audit activities, management, and reporting of any cases of non-compliance. See also page 30.
The main social risks identified by Moncler are primarily those affecting clients, i.e., product safety and counterfeiting, and animal welfare.
To ensure the protection of the health and safety of its clients, Moncler requires all its suppliers to perform in full compliance with the most stringent international regulations relating to hazardous and potentially hazardous chemical substances and regularly conducts thorough tests on the chemical composition and physical and mechanical properties of its products. They are also required by contract to comply with the guidelines of the Restricted Substances List (RSL), which outlines the most stringent standards for the use of certain substances. The proper implementation of these guidelines is verified through tests on the chemical composition of raw materials at independent specialised laboratories, at the request of the supplier and/or Moncler itself. The Group ensures comprehensive monitoring of this risk through an ad-hoc corporate function (Operations Compliance Department). See also page 83.
The Group's commitment to protecting its clients and Brand has also been pursued for years now through the fight against counterfeiting. To this end, Moncler has implemented a series of management and prevention tools, including the creation of an internal department specialised in Intellectual Property and Brand Protection, the issue of detailed procedures, collaboration with law enforcement agencies, customs, and other luxury brands, training and auditing of suppliers, and finally the use of anti-counterfeiting tags applied on all products. See also page 85.
In order to ensure animal welfare, Moncler demands and verifies that all its down suppliers comply with the strict requirements of the DIST Protocol (Down Integrity System and Traceability). With the support of specialised independent bodies, the Group conducts regular audits to ensure that animals are treated decently from the farm to the slaughterhouse. See also page 76.
For an overview of the different types of risks to which Moncler is exposed and to complete the information provided above, see also the Board of Directors' Report contained in the Annual Report 2017.
THE TRUE VALUE OF A COMPANY LIES IN THE WAY IT CONDUCTS BUSINESS, ITS CONTRIBUTION TO SOCIETY AS A WHOLE, AND ITS ABILITY TO FULFIL ITS COMMITMENTS. THE INCREASING INTEGRATION BETWEEN BUSINESS DECISIONS AND THE ASSESSMENT OF THEIR ENVIRONMENTAL AND SOCIAL IMPACTS IS AT THE CORE OF THE GROUP'S ABILITY TO CREATE LONG-TERM VALUE FOR ALL OF ITS STAKEHOLDERS.
In order to increasingly integrate sustainability into its business, Moncler has implemented a governance system based on the interaction of various bodies specialised in the supervision and management of these issues.
The Sustainability Unit is responsible for identifying sustainability risks, reporting them promptly to senior management, and managing them (in collaboration with the relevant divisions), as well as for identifying areas for improvement and relevant improvement measures, thus creating value in the long term. The Unit is also tasked with proposing the sustainability strategy, drafting the Sustainability Plan, preparing the Consolidated Non-Financial Statement, and fostering a culture of sustainability within the Group. Lastly, the Unit promotes a dialogue with stakeholders and, together with the Investor Relations division, handles the requests of sustainability rating agencies and the needs of Socially Responsible Investors (SRIs).
Each Company department has a number of "Ambassadors" responsible for raising awareness of social and environmental issues within their respective areas and promoting sustainability initiatives in line with the Group's objectives. In 2017, the figure of the Sustainability Data Owner was also created. They are responsible for the data and information relating to their area that are published in the Consolidated Non-Financial Statement, and for achieving the objectives set in the Sustainability Plan for the relevant issues.
The Sustainability Unit relies on the advice of the Sustainability Steering Committee, which comprises the members of the Strategic Committee and a number of heads of the Group's most relevant functions. In its advisory capacity, the Committee assesses the proposals of the Sustainability Unit, supervises the sustainability guidelines and targets, and analyses the extent to which they are achieved.
As further evidence of the degree to which the Company's senior management supports and promotes sustainability, the Control, Risks, and Sustainability Committee was established as a committee of the Board of Directors. It comprises three Non-Executive, Independent Directors. The Committee is tasked by the Board of Directors with: supervising sustainability issues associated with the business activities of the Company and its interactions with stakeholders; defining strategic sustainability guidelines and the relevant action plan (Sustainability Plan); and reviewing the Consolidated Non-Financial Statement.
Moncler considers the materiality analysis as an important tool to identify the most relevant environmental and social priorities that are consistent with its business strategy, and to define the contents of the Non-Financial Statement according to GRI-G4 international reporting guidelines.
In terms of sustainability reporting, the aspects deemed as material (or relevant) are those that have a significant impact on the economic, social, and environmental performance of the Company or that may substantially influence stakeholders' perceptions and decisions.
Accordingly, the materiality analysis is two-fold, as it takes account of the standpoint not only of the Company, but also of its stakeholders.
The analysis was conducted by the Sustainability Unit with the support of a specialist consultancy firm, through a structured process involving the Group's management.
The analysis was performed through a four-step process:
(1) World Economic Forum report, the Sustainability Manifesto for Italian Fashion, reports and studies of the Nordic Initiative Clean and Ethical (NICE), and the Sustainable Apparel Coalition (Higg Index).
(2) Global Compact, GRI-G4 Sustainability Reporting Guidelines, OECD Guidelines for Multinational Enterprises.
The materiality analysis identified 16 material aspects(3), including: brand reputation, product quality and safety, responsible sourcing, client relations and client satisfaction, performance assessment and career development, innovative solutions, animal welfare, and employee engagement.
In 2018, the materiality matrix will be updated, and the material aspects identified in 2015 will be reviewed. The update will take into account developments in the reference sector, mega-trend analyses and feedback from stakeholder dialogue activities.
For the correlation between material aspects and GRI-G4 aspects and indicators, please see the table on page 129.
Moncler believes in the importance of maintaining continuous and strong relationships with all of its stakeholders. Relationships that thrive on constant dialogue and active engagement reflect the Group's sense of responsibility towards the social context with which it interacts.
Stakeholders have a wide range of differing interests, therefore establishing and maintaining stable and lasting relationships is crucial for creating shared, long-term value.
Understanding specific requirements and priorities enables Moncler to tackle issues before they become critical, and to fine-tune its actions in response to stakeholders' interests. The first step toward building an effective engagement process involves the clear and timely identification of stakeholders, so as to establish the most effective communication channels, while continually monitoring expectations, needs, and opinions.
The Group pursues a proactive approach to all stakeholders worldwide. It does so through dedicated functions that interact with them continually, promoting ongoing dialogue and remaining responsive to their needs. Indeed, Moncler believes that such interactions are opportunities for mutual growth and improvement.
The following table, which illustrates the stakeholders map including their expectations, is periodically monitored through internal surveys with the corporate organisational units tasked with the day-to-day management of relations with each category.
(3) Within the scope of the analysis, aspects related to corporate governance, regulatory compliance, and economic performance were considered prerequisites; as such, they were not individually examined in the process, but were nevertheless accounted for in this Statement.
| STAKEHOLDERS | TOOLS AND CHANNELS OF INTERACTION | STAKEHOLDER EXPECTATIONS |
|---|---|---|
| Employees | Continuous dialogue with the Human Resources Department |
Information on Group strategies and results |
| Annual meetings to discuss career plans, | Responsible business management | |
| set individual targets, and review performance assessments |
Clear objectives and rewards system | |
| Meetings with staff to share the Company's | Training and career development | |
| results and goals for the future | Stimulating and safe work environment | |
| Meetings to raise awareness and share | Equal opportunities | |
| information on health and wellbeing | Involvement in Company life | |
| Training sessions | Wellbeing and health and safety initiatives | |
| Corporate intranet (MONCamp) | ||
| Induction programmes for new hires | ||
| Trade unions and workers' representatives | Meetings with trade union representatives | Responsible business management |
| Engagement and prompt information on issues affecting the Company workforce |
||
| Updates on the progress of training programmes |
||
| End clients | Direct, ongoing relationship with sales | Product quality, safety, and durability |
| personnel Customer care services |
Products manufactured respecting the environment, people, and animals |
|
| Engagement via phone, mail, email, and social media |
Style, uniqueness, innovation, and a complete product range |
|
| Design and delivery of personalised initiatives and experiences |
High level of service during and after the sale |
|
| Market research and focus groups | Competent, professional, and empathetic sales personnel |
|
| Client feedback | Personalised shopping experience and engagement |
|
| Wholesale clients | Events at Moncler showrooms and stores | Product quality and innovation |
| Ongoing engagement via phone and business updates via email |
Safety and transparency with regard to environmental, social, and animal welfare issues throughout the supply chain |
|
| Brand reputation | ||
| Suppliers, business partners | Daily interactions | Continuity of supply |
| Institutional meetings | Respect for contractual terms and | |
| Definition of shared standards | conditions | |
| Seasonal and annual training | Participation in the definition of supply standards, including social and |
|
| Dedicated portal | environmental criteria, and prompt notification of new requirements |
|
| Collaboration and support in managing production issues |
||
| Local communities | Meetings with representatives of local | Support or funding of initiatives |
|---|---|---|
| associations and organisations | ||
| Development of initiatives and projects | Support for awareness-raising campaigns | |
| managed directly or in partnership | ||
| Investors and analysts | Annual Shareholders' Meeting | More in-depth and consolidated knowledge |
| (traditional and sustainability analysts) | Regular conference calls following key | of the Group and its business model |
| announcements | Value creation (return on investment, | |
| Price-sensitive announcements and | business sustainability) | |
| information | Transparent and responsible management | |
| Seminars, industry conferences, road | Timely and open dialogue | |
| shows, and meetings | Suitable risk management, including social | |
| Daily engagement (meetings, phone calls, emails) |
and environmental risks | |
| Corporate website | ||
| Dedicated investor app | ||
| Questionnaires on sustainability | ||
| performance | ||
| Media | Press days | Access to timely and accurate information |
| Interviews with senior management | Information on upcoming season trends | |
| Press conferences | ||
| Media plan | ||
| Continuous dialogue | ||
| Fashion shows/events | ||
| Ad hoc meetings and events | ||
| Corporate website | ||
| Local bodies, public administrations, | Ad hoc meetings | Participation in projects of public utility |
| regulatory bodies, industry associations, and non-governmental organisations |
Participation in work groups | Integration of environmental, social, and |
| (NGOs) | Definition and development of joint | animal welfare considerations into |
| projects | Company strategies and supply system | |
| Disclosure of Company targets with regard to environmental, social, and animal |
||
| welfare issues | ||
| Active participation in round-table discussions |
||
| Efficient use of raw materials | ||
| Implementation of sustainability requirements at new stores |
||
Moncler firmly believes in dialogue and participation and collaborates with several organisations and round tables at both national and international levels. Indeed, it is active in a number of areas, from the promotion of the Italian fashion industry and its sustainability performance to the fight against counterfeiting, trademark protection, the promotion of women's leadership and talent, innovation, and the development of amendments to national and international standards.
The Group is a member of the following main associations and initiatives:
public bodies, research centres, educational and academic institutes, consumer associations, trade unions, third sector organisations, and non-governmental organisations, which together form a single multi-stakeholder forum for technical debate at national level. The association represents Italy in the European Committee for Standardisation (CEN) and in the International Organization for Standardization (ISO), supporting the harmonisation of standards and promoting and enhancing the 'Made in Italy' trademark.
The highest principles of transparency and ethics, as set out in the Group Code of Ethics, govern the Group's dealings with political parties and their representatives.
In 2017, Moncler did not make donations to any political parties and did not receive any significant form of public funding or subsidy. Any political commitment or donations made by Group employees are considered as personal and purely voluntary.
THE SUSTAINABILITY PLAN IS THE EXPRESSION OF THE GROUP'S COMMITMENT TO AN EVER-MORE SUSTAINABLE AND RESPONSIBLE GROWTH. IT IS UPDATED EACH YEAR TO REPORT ON THE STATUS OF PROJECTS UNDERWAY, AND TO SET NEW TARGETS FOR CONTINUOUS IMPROVEMENT, IN THE AWARENESS THAT SUSTAINABILITY IS AN ONGOING CHALLENGE WITH NO END.
Through the Sustainability Plan, the Group shares it medium- and long-term sustainability strategies with stakeholders.
In order to enhance the integration of environmental and social considerations into Company operations, the Plan focuses on certain priority areas:
Moncler, as a multinational company that firmly believes in sustainability, is committed to making its contribution to the achievement of the goals published in 2030 Agenda for Sustainable Development that was signed by the 193 member states of the United Nations. The Sustainable Development Goals (SDGs) set out the priorities for contributing to global development, promoting human wellbeing and protecting the environment. The SDGs call for joint global action between governments, businesses and society and are intended to mobilise all efforts around a common set of goals to be achieved by 2030. Of the 17 goals described by the SDGs (such as, ending poverty, fighting inequality, tackling climate change), the Group is contributing to 10 of them either directly or through organisations with which it collaborates. As a first step, Moncler also verified the degree to which the objectives already existing in its Sustainability Plan aligns with those defined by the SDGs and concluded that some of its objectives are already linked to 6 of the 17 United Nations Goals. The objectives relating to the 6 SDGs are clearly set out in the Sustainability Plan below.
The Sustainability Unit works with the heads of the relevant departments to identify areas for improvement and related projects, on the basis of which it formulates a draft proposal for the Sustainability Plan (planning stage).
The Plan is then submitted to the Sustainability Steering Committee, which analyses its contents and feasibility. The final stage involves the Plan's assessment by the Control, Risks, and Sustainability Committee, which verifies its consistency with Group strategy and gives its opinion to the Board of Directors, which is responsible for final approval.
Responsibility for achieving the targets of the Sustainability Plan lies with the liaison officers of the departments involved, who have the necessary resources, tools, and know-how to implement the Plan (operational stage).
To ensure adherence to the commitments made, the Sustainability Unit asks for regular progress reports on projects, and updates the Control, Risks, and Sustainability Committee accordingly (monitoring stage).
| ACTIONS | 2017 RESULTS | TARGETS | |
|---|---|---|---|
| CORPORATE GOVERNANCE AND SUSTAINABILITY | |||
| Foster a culture of sustainability within the Group | |||
| Implementation of an integrated sustainability management system incorporating environmental and social aspects into business decisions |
• Sustainability issues discussed with the Control, Risks and Sustainability Committee at about 50% of meetings |
Continuous in-depth analysis of sustainability issues at meetings with the Control, Risks, and Sustainability Committee |
|
| • Materiality matrix fine-tuned with the integration of two new aspects |
2018 Update of the materiality matrix | ||
| Monitoring of Key Performance Indicators (KPIs) for non-financial aspects |
• Mapping of information requests by sustainability rating agencies updated |
Ongoing analysis of information requests by sustainability rating agencies and identification of any additional KPIs |
|
| Integration of environmental and social aspects into employee performance targets |
• Sustainability aspects included among the goals of managers and key people |
Ongoing presence of environmental and social aspects among the performance targets of employees and management involved in the implementation in the Sustainability Plan |
|
| • Key positions in the Company for responsible sourcing identified |
2018 Introduction of responsible sourcing targets for key positions in the Company |
||
| Provision of classroom and/or online training to raise employee awareness of sustainability issues |
• Sustainability training delivered in the classroom in corporate offices in Italy (100% of employees covered) and via intranet worldwide |
Ongoing training and information on sustainability to employees | |
| Maintain corporate governance and risk management systems aligned with best practices | |||
| Update of the Code of Ethics and other corporate policies |
• Code of Ethics updated | 2018 Code of Ethics dissemination and training to all employees worldwide |
|
| • Preliminary assessment performed for the update of the Organisation, Management, and Control Model |
2018 Training on Organization, Management, and Control Model to all employees in corporate offices in Italy |
||
| • Environmental and Anti-corruption Policy approved by the Board of Directors and disseminated to all employees in Italy |
|||
| Broadening of the scope of business processes covered by the Enterprise Risk Management (ERM) system |
• ERM model updated to include the Human Resources Management area, the production process at the site in Romania and cyber risks |
Continuous update of the ERM system based on potential risk factors (also related to social and environmental issues) identified during regular assessments |
|
| Update of the corporate governance system | Continuous monitoring of best practices and guidelines of the Corporate Governance Code for Italian Listed Companies with regard to corporate governance, and updating of the system as needed |
||
| Implementation of a whistleblowing procedure | φ Study launched to adopt a web platform and ad-hoc telephone lines for the management of reports |
2018 Online training on whistleblowing procedure for all employees worldwide |
|
| Integrate sustainability issues in the dialogue with stakeholders | |||
| Reporting of sustainability performance and targets to analysts and investors |
• Frequency of contacts with socially responsible investors (SRIs) and analysts increased |
Continuous integration of sustainability issues into financial communications |
|
| Collaboration with fashion/textile companies to share best practices and enhance sustainability performance in the sector |
• Participation in roundtables focusing on down, potentially hazardous substances, and good sustainability practices |
Continuous participation in working groups focusing on sustainability issues |
|
| Closer dialogue with key stakeholders on environmental and social issues |
• 4th DIST (Down Integrity System & Traceability) multi-stakeholder forum on animal welfare of geese and down traceability and quality held |
2018 Meetings with key stakeholders focusing on relevant environmental and social issues |
• Achieved or in line with plan
φ Partially achieved
o Postponed
| ACTIONS | 2017 RESULTS | TARGETS |
|---|---|---|
| PEOPLE | ||
| Engage employees and meet their expectations | ||
| Execution of people satisfaction surveys to better understand employee needs and expectations |
• People satisfaction survey conducted on 2,000 employees around the world |
2018 Repeat of global people satisfaction survey |
| • Results of the people satisfaction survey assessed and working groups to define action plan set up |
2018 Action plan implementation | |
| Strengthening of internal communications | • Group intranet actively used by approximately 1,680 employees around the world |
Ongoing internal communication activities by Region |
| • Corporate Ambassador team consolidated to promote employee engagement projects |
||
| Offer equal opportunities | ||
| Management of vacancies through a Job Posting system |
• Internal Job Posting launched for employees in Italy |
2018 Launch of the Job Posting programme worldwide |
| Implementation of a policy to ensure equal opportunities in the recruitment process |
• Personnel Search and Recruitment Policy disseminated through different channels |
|
| Participation in associations and roundtables focused on enhancing the role of women in the workplace |
• Support provided to Italian association Valore D, dedicated to promoting women's leadership and talent |
Continuous participation in initiatives |
| Promotion of a work environment inspired by the highest principles and fundamental rights at work |
Continuous implementation of information and training activities worldwide |
|
| • Number of women in management positions increased by 14% versus 2016 |
Continued increase in the number of diversity candidates hired by Region, in accordance with local requirements and constraints |
|
| Nurture talent | ||
| Extension of the performance assessment programme |
• 94% of permanent employees assessed worldwide (excluding workers) |
2019 Launch of a study for an employee performance assessment at the production site in Romania |
| Definition and implementation of a training and development programme |
• MonCampus Project training programme for talented young people launched • Figure of Manager-In-Training (MIT), high-potential person, created for flagship stores around the world |
2018 Definition and implementation of a multi-year training programme and establishment of career paths for high-potential employees and managers |
| Definition of incentive plans | • Performance Share Plans for the two year period 2016-2017 awarded to 98 management figures and key persons of the Group |
Continuous provision of long-term incentives |
| 2019 Initial analysis for the definition of a Rewards Plan at the production site in Romania |
||
| Development of talent retention tools | 2018 Gradual extension of the accrual plan to Europe | |
| Promote employee wellbeing | ||
| Definition of an employee welfare plan | • Welfare plan dedicated to employees of corporate offices in Italy implemented |
2018 Extension of employee welfare plan to the production site in Romania, in accordance with local requirements and constraints |
| Enhancement of employee wellbeing during working hours |
2017 - 2019 Launch of renovation project at Italian corporate offices in Trebaseleghe (Padua) and realisation of the Moncler Village |
|
| Promotion of a culture of wellness, through targeted programmes aimed at encouraging healthy lifestyles, and at raising awareness of issues such as nutrition, smoking, and prevention |
• Awareness-raising meetings held on healthy lifestyles and smoking with the Umberto Veronesi Foundation for employees of corporate offices in Italy |
Continuous implementation of awareness initiatives by Region |
| ACTIONS | 2017 RESULTS | TARGETS |
|---|---|---|
| Foster work-life balance | ||
| Implementation of initiatives promoting work-life balance |
• Agreement for an integrated nursery and kindergarten for the children of employees at Italian corporate offices in Trebaseleghe (Padua) renewed |
Ongoing implementation of initiatives by Region to promote work-life balance |
| Support for volunteer work during working hours | • Dialogue launched with non-profit associations and organisations to start corporate volunteering activities in Italy. • Some employees involved in disaster relief efforts by volunteering a day's work in support of communities in central Italy |
2018 Implementation of corporate volunteering programmes by Region |
| Continue to improve occupational health and safety | ||
| Definition and implementation of a certification process for the occupational health and safety management system |
• Moncler production site in Romania and offices and stores in France, Germany, United Kingdom, and Switzerland certified as per the OHSAS 18001 international standard |
2018 Maintenance of OHSAS 18001 certification and extension to all offices and stores in Europe [SDG 3 - SDG 8] |
| 2019 Maintenance of OHSAS 18001 certification and extension to all offices and stores worldwide (existing at 2017) [SDG 3 - SDG 8] |
||
| Promotion of a culture of health and safety in the workplace |
• More than 14,000 hours of health and safety training delivered to employees of the production site in Romania |
Ongoing promotion of health and safety training and information tools for employees at the production site in Romania |
| Prevent work-related stress | ||
| Monitoring of work-related stress and definition of prevention plans |
• Action plan for the prevention of employee work-related stress implemented at corporate offices in Milan (Italy) |
2018 Gradual extension of employee work-related stress assessment to European offices |
| 2019 Implementation of action plans to prevent work-related stress across all offices in Europe |
||
| PRODUCT AND SUPPLY CHAIN | ||
| Promote a responsible supply chain | ||
| Fostering a culture of responsible sourcing among employees interacting with suppliers |
• Training course on sustainability and responsible sourcing principles delivered to quality staff and some employees who interact directly with suppliers |
|
| Definition and dissemination of social, ethical, and environmental standards for suppliers |
• Terms concerning compliance with the Group Code of Ethics included in 45% of contracts |
2018 Gradual inclusion of contractual clauses on compliance with the Supplier Code of Conduct |
| • Training course on ethical principles delivered to all direct suppliers of jacket manufacturing services |
2018 Provision of training to other direct suppliers on the Group's responsible sourcing principles |
|
| Analysis of risk within the supply chain | • Self-assessment questionnaires, also focused on sustainability aspects, distributed to 117 suppliers in the period 2016-2017 (81% of the value of orders) |
2018 Ongoing distribution and analysis of self-assessment questionnaires |
| 2018 Update of vendor rating system to reflect additional sustainability issues and the results of self-assessment questionnaires and audits |
||
| Implementation of audits to verify compliance with social, ethical, and environmental standards |
• 70 ethical, social, and environmental audits, involving 100% of direct suppliers of jacket manufacturing services, carried out. |
2018 Social, ethical, and environmental auditing of: - 70% of direct suppliers of manufacturing services (façon manufacturers) - 15 direct suppliers of other categories - 15 indirect suppliers of down and manufacturing services |
| • Tests of waste water on 4 suppliers carried out |
2018 Analysis of wastewater generated by the production processes of some suppliers [SDG 12] |
| • Suppliers formally notified of non conformities identified during audits and requests for corrective measures |
Continuous definition of joint supplier-Company plans to solve non-conformities identified during audits; monitoring of results |
|
|---|---|---|
| Certification of the down supply chain | • 100% of down purchased certified as per DIST (Down Integrity System & Traceability) Protocol regulating animal welfare and down quality and traceability • 85 external third-party audits performed |
Continuous purchase of down that is 100% DIST certified |
| • Training material for farmers disseminated in four languages |
2018 Dissemination of animal welfare training material for slaughterhouses |
|
| Ongoing review and monitoring of banned or restricted substances (Restricted Substances List, RSL) in products and production processes |
• Supply contracts amended following update to the Restricted Substances List (RSL) |
Ongoing review of the list of substances banned or restricted in Moncler products, in line with the latest and most reliable studies and/or changes in applicable laws |
| [SDG 12] | ||
| Promotion of good sustainability practices among suppliers |
2018 - 2019 Mapping of suppliers certified as per ISO 14001 and OHSAS 18001 standards, and launch of awareness campaign |
|
| 2019 Promotion of ISO 14001 and/or OHSAS 18001 certification among key suppliers |
||
| CLIENTS | ||
| Redefine the overall retail organisation to enhance client-centricity | ||
| Enhancement of retail personnel's skills, engagement, and sense of belonging to improve alignment with client expectations |
• Internal organisation of stores and of training and career pathways for retail personnel revised at global level |
Ongoing training activity and involvement of retail personnel |
| Strengthen relations and client satisfaction | ||
| Implementing dialogue activities by expanding the collection of feedback and expectations from clients |
• Systematic collection of feedback started in Europe and the United States |
2018 Extension of customer feedback collection to Asian countries |
| • Client Service project for a direct dialogue channel launched in Italy |
2019 Extension of the Client Service project to all Regions | |
| Sharing of Moncler's commitment to a sustainable future with clients |
2018 Training of retail personnel worldwide, focusing on the Company's activities in support of people, the environment, and animal welfare |
|
| ENVIRONMENT | ||
| Improve energy efficiency and reduce CO2 | emissions | |
| Environmental impact assessment of key offices and stores, and implementation of improvement and/or offsetting measures |
• Energy impact reduction plan set out at the logistics hub in Castel San Giovanni (Piacenza) |
2018 Implementation of improvement plans to reduce energy impact at the logistics hub in Castel San Giovanni (Piacenza) |
| [SDG 12] | ||
| • ISO 14001 certification obtained by the production site in Romania |
2018 Certification of corporate offices in Italy as per ISO 14001 standard and maintenance of certification of production site in Romania |
|
| [SDG 12] | ||
| Purchase of electricity from renewable sources | • 100% of electricity consumption at offices, stores, and logistics hub in |
Continued use of 100% of electricity at offices, stores, and logistics hub in Italy derived from renewable sources |
| Italy derived from renewable sources | [SDG 7] | |
| Integration of sustainability requirements at Directly Operated Stores, such as air conditioning and lighting systems with low environmental impact |
• 93% of stores around the world equipped with LED lighting Excluding the 14 shop-in-shops in |
Continued use of LED lighting in stores around the world [SDG 7] |
| which lighting is provided by the host department store, where Moncler cannot take action. |
| φ Sustainability requirements defined for new stores |
2018 Assessment of existing air-conditioning systems in owned stores |
|
|---|---|---|
| [SDG 13] | ||
| Reduce the environmental impact of logistics processes | ||
| Definition of a set of environmental key performance indicators (KPIs) |
φ Preliminary feasibility study of CO2 emissions monitoring of incoming finished products started |
2018 First monitoring of CO2 emissions from transport (excluding airfreight) of raw materials and finished products to the Italian logistics hub in Castel San Giovanni (Piacenza) |
| 2019 First monitoring of CO2 emissions from transport (excluding airfreight) of raw materials from the Italian logistics hub in Castel San Giovanni (Piacenza) to sub-contractors in Europe |
||
| • CO2 emissions from road transport of finished products from the logistics hub in Castel San Giovanni (Piacenza) to all owned stores or local warehouses monitored |
2019 Gradual extension of worldwide monitoring of CO2 emissions from transport of finished products from the Italian logistics hub in Castel San Giovanni (Piacenza) |
|
| Management of the environmental impact of transport |
2018 Feasibility study on increased transport with lower environmental impact |
|
| [SDG 13] | ||
| Reduce the environmental impact of the shopping experience | ||
| Design and production of an eco-friendly shopping bag, boxes, and other packaging |
• Eco-friendly shopping bags distributed and used worldwide |
Continuous use of eco-friendly shopping bag worldwide |
| • Eco-friendly boxes distributed and used worldwide |
Continuous use of eco-friendly boxes worldwide | |
| 2018 Study of other packaging solutions with low environmental impact |
||
| Promotion of good environmental practices across Directly Operated Stores (DOS) |
2019 Launch of a pilot project in Italy to define the environmental guidelines for stores |
|
| Raise employee awareness of the environmental impact of daily activities | ||
| Spreading of virtuous eco-friendly behaviour among employees: from encouraging the responsible use of paper, toner and energy, to the promotion of waste |
• 10 Golden Rules for the environment disseminated worldwide among all employees |
Continuous promotion of awareness initiatives focusing on the mitigation of environmental impacts |
| sorting and sustainable mobility. | [SDG 12] | |
| 2018 Gradual introduction of cars with low environmental impact | ||
| in the corporate car fleet | ||
| [SDG 13] | ||
| COMMUNITIES | ||
| Support medical and scientific research and innovation | ||
| Organisation of initiatives and funding of research | • Support provided to the Countdown | Continued support to scientific research |
| grants to raise awareness and support associations working in the field of research and innovation |
to a Cure for AIDS research initiative of the amfAR Foundation, aimed at finding a broadly applicable cure for HIV by 2020 |
[SDG 3] |
| • Support provided to various cancer prevention and research projects promoted by the Umberto Veronesi Foundation |
||
| Promote the social and economic development of local communities | ||
| Promotion of initiatives fostering the growth of local communities, also via partnerships with associations and non-profit organisations |
• New elementary school in Cascia, funded by Moncler through the Francesca Rava Foundation – N.P.H. Italia Onlus, inaugurated |
Ongoing support for initiatives to promote the social and economic development of the local communities in which the Group operates |
| • Warmly Moncler project, promoted by Unicef for children living in emergency situations, supported |
[SDG 11] |
EMPLOYEES IN NUMBERS MANAGEMENT AND DEVELOPMENT DIVERSITY AND EQUAL OPPORTUNITIES OCCUPATIONAL HEALTH AND SAFETY INDUSTRIAL RELATIONS
MONCLER IS STEADFAST IN ITS BELIEF THAT CREATING VALUE IN THE LONG RUN IS CLOSELY LINKED TO HUMAN RESOURCES: MONCLER INVESTS GREAT ENERGY IN RECRUITING THE BEST TALENT AND IN SUPPORTING THEIR PROFESSIONAL GROWTH AND
IT OFFERS THEM A WORKPLACE THAT IS BOTH HEALTHY AND SAFE,
MERITOCRATIC AND STIMULATING, WHERE DIVERSITY IS VALUED, AND WHERE INDIVIDUALS CAN THRIVE AND EXPRESS THEIR CAPABILITIES, POTENTIAL, AND TALENT TO THE FULLEST.
At 31 December 2017, the Moncler Group had 3,498 employees, up 9% compared to 2016 (equivalent to 282 more employees). Growth in staffing involved almost all the countries where the Group operates. See also pages 108-110.
By geographic area, the majority of Moncler's workforce is concentrated in EMEA. By country, most employees are concentrated in Italy (23%), Romania (26%), and Japan (12%).
White-collars account for the largest number of Company employees – a direct reflection of Moncler's business model, in which the largest share of workforce is concentrated in the retail area (52% of the Company's total workforce is employed in retail stores). See also page 108.
(1) Employees are divided into five categories: workers, white-collars, professionals, managers, and executives/senior executives.
Executives and senior executives include the first and second highest level decision-makers in a Company division or business unit; they contribute to the definition of both corporate and division strategy, and thus have a direct impact on their performance.
Managers are responsible for the implementation of certain operating activities and processes, usually by managing a group of people. This category also includes senior managers responsible for implementing corporate or division strategy, through leadership and people management.
Professionals have specialist skills and manage activities or parts of processes that are of significance to the organisation. They may be in charge of coordinating a team of technical experts.
White-collars are tasked with specific operational responsibilities and/or duties assigned by a senior officer.
Workers perform operational duties within the Company.
The majority of the Group's workforce (35%) is in the 31-40 age group; the average age is 36.5 years.
As regards length of service, the majority of employees (87% of the workforce) has been employed for 0-5 years, which reflects the rapid expansion recently experienced by the Group.
Most employees (74%) have a medium/high level of education (41% hold a university degree or equivalent, and 33% a high school diploma). See also page 108.
(2) In 2017, 164 employees could not be mapped as information on education level was not available.
Moncler operates directly in around 70 countries worldwide through local offices, where senior management works in synergy with the Company's corporate offices to manage the respective areas of competence.
Despite the lack of a specific policy, the Group has always favoured the hiring of qualified local professionals, whose skills and knowledge of the specific markets enable a better understanding of country-specific competitive dynamics and cultures. This approach, along with a strong organisational integration on a global scale, has led to the creation of significant value for the Group.
Over 98% of senior managers in the various Regions were hired locally, with no substantial difference in gender.
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| EMEA (including Italy) | 100% | 100% | 100% |
| Americas | 100% | 100% | 100% |
| Japan | 100% | 100% | 100% |
| Korea | 100% | 100% | 100% |
| China and Hong Kong | 91% | 80% | 89% |
A total of 77% of employees have a permanent employment contract, an increase over the previous year, with about 92% of them working full-time.
Temporary employment contracts are mostly related to the seasonality of certain business and sales activities. In 2017, 113 temporary employment contracts became permanent. See also page 109.
At year-end 2017, other forms of collaboration (such as internships, professional collaborations, etc.), as permitted by law and in relation to business needs, had involved 292 additional people.
In 2017, the Group hired about 1,600 people. This growth was mainly driven by the expansion of the network of Directly Operated Stores (DOS), the enhancement of corporate units, and the creation of new organisational divisions. As far as age is concerned, 58% of new hires were under 30, confirming the Company's ambition to invest in new generations. See also page 109.
During the year, a total of 1,300 employees left the Company, of whom about 600 for the termination of temporary contracts.
With regard to the 26%(3) negative turnover recorded, it is important to mention that it was mainly due to the departure of retail personnel, who accounted for 50% of the exiting employees, a phenomenon to be expected given the competitive dynamics of the sector.
| 2017 | |
|---|---|
| Employees at 31/12/2016 | 3,216 |
| New hires(4) | 1,581 |
| Departures(4) (5) | (1,299) |
| Employees at 31/12/2017 | 3,498 |
(3) The negative turnover was calculated by relating the number of permanent employees (654) who left the Company in 2017 with the total number of permanent employees (2,542) at 31 December 2016.
(4) The figure refers to both temporary and permanent employees.
(5) The figure includes 88 exiting temporary employees at 31 December 2016.
THE GROUP PLACES GREAT IMPORTANCE ON THE SELECTION AND RECRUITMENT OF PERSONNEL, AS WELL AS ON THEIR PERFORMANCE EVALUATION AND ENGAGEMENT. IT HAS INVESTED SIGNIFICANT ENERGY IN THE PROCESS – ESPECIALLY IN RECENT YEARS.
Moncler seeks to identify and attract the best talent, people who stand out not only for their strong technical, professional, and management skills, but also for their personal qualities, energy, flexibility, identification with Group values and, last but not least, their positive and effective interpersonal style and ability to adapt to an ever-changing environment.
Driven by the Group's growth and geographic expansion, the recruitment process is increasingly focusing on people with an international profile and a broad and diverse cultural and educational background, as well as on expertise and experience suited to meet the Group's future challenges.
The interest drawn by the Company and its appeal as an employer are reflected in the significant number of job applications it receives every year. In 2017, about 15,000 resumes were submitted via the corporate website.
The recruitment process follows the procedure set out in the Personnel Search and Recruitment Policy, also as a means to increasingly guarantee equal opportunities and to empower internal resources.
An Internal Job Posting system is also in place, enabling employees to apply for openings that better suit their profiles. The system contributes to spreading a culture of global mobility within the Group, and represents a new pillar of job rotation and development policies.
Collaborating with the best vocational institutes, universities, and business schools – with which Moncler has long-standing relationships – is also of great importance to the Company. Initiatives range from internships for students and new graduates, to the development of projects, participation in work groups, and visits to Company premises. Employer branding activities are a great opportunity to showcase the Company and its recent developments, increase its appeal, and reach out to a large number of talented people.
Every year, Moncler offers various internships to young people with high potential, giving them the opportunity to experience the Company and its business as they train. In 2017, about 120 internships were offered in Italy, ranging from alternating school-work programmes to curricular and extracurricular internships. With regard to curricular and extracurricular internships, 20% of those concluded in 2017 led to actual employment contracts. See also page 54.
In 2017, managers and personnel from the Pattern Making department continued their work with students attending the Modelling and Tailoring Master's programme of the Istituto Secoli of Milan, supporting them in the various stages involved in the development of a men's collection, from the sourcing of materials and accessories through to the final fashion show.
One of the year's most interesting achievements was the start of a partnership with the Università Cattolica del Sacro Cuore (Milan), within the framework of the Master in Luxury Goods Management (EMLUX). As part of this initiative, members of Moncler's management hold courses on subjects regarding the world of retail, present business cases, and propose project work.
Finally, in 2017, Moncler organised a series of meetings with students from partner schools. These included workshops, business cases and recruitment sessions, based on tailor-made programmes for each school. The Company boasts collaborations with prestigious institutions, including the IESE Business School, Glion Institute of Higher Education, Les Roches International School of Hotel Management, Università Cattolica, Stanford University, Università Bocconi, Politecnico di Milano, Istituto Secoli, and the Milano Fashion Institute.
Training plays a key role in the development of talent. It is an important tool for enhancing and strengthening individual skills while also disseminating the Company's values and strategy, thus supporting cultural and organisational growth.
In 2017, a total of around 733,000 euros was invested in training (+30% compared to 2016), with over 69,000 hours of training (about 52% more than in 2016) delivered to over 2,600 employees, of whom 74% were women.
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Training expenditure (EUR) | 732,820 | 513,030 | 435,905 |
| Hours of training (no.) | 69,050 | 33,127 | 12,333 |
| Employees involved (no.) | 2,616 | 2,600 | 1,339 |
Of the employees who participated in training activities, 47% were white-collars, 34% workers, 11% professionals, 6% managers, and 2% executives and senior executives.
Training was delivered almost entirely (about 99.5%) through classroom sessions, focusing mainly on professional training (73%) and on occupational health and safety (22%).
In 2017, at corporate level, Moncler kicked off the development of a training pathway dedicated to talented young people called the MONCampus Project. Planned to start in 2018, it aims at developing Company awareness among young people, as well as at improving knowledge and awareness of core business processes and activities, such as People Management, Finance, Supply Chain, Retail, and Digital & IT Transformation. Expert figures from the various functions will be engaged as teachers and will be responsible for the design and delivery of content.
Throughout the year, at both Italian corporate offices and at the production site in Romania, Moncler continued to offer training programmes. These were mainly devised to strengthen and spread a culture of personal health and safety, raise awareness of risks in the workplace while providing information on risk identification and management, and encourage responsible behaviours among all employees.
Moreover, employees at corporate offices in Italy received training on sustainability issues and corporate social responsibility, aimed at encouraging people to promote and support behaviours, actions, and initiatives that take account of social and environmental matters.
Finally, Moncler continued to support the training initiatives organised by the Italian association Valore D, by encouraging employees from the corporate offices in Italy to attend a series of in-house courses and workshops. These courses were designed to promote organisational models and develop a corporate culture of collaboration and dialogue between generations, genders and different cultures, as well as to facilitate the use of innovative and flexible tools to increase the wellbeing and motivation of staff.
At retail level, Moncler continued to invest in a number of initiatives aimed at boosting the professionalism of sales personnel, particularly through the Retail Excellence project. Training programmes covered multiple topics, ranging from technical product knowledge (of both raw materials and the production processes for footwear, handbags, and sunglasses), to understanding the Brand and its history, to the development of interpersonal and managerial skills, with a view to promoting a service model and sales style that make the shopping experience unique and distinctive.
At management level, Moncler implemented a Learning Management system designed to provide all employees at corporate offices and retail staff with an overview of their training pathway and to allow them to receive training online.
Following the update of the Group Code of Ethics, targeted training is planned to be delivered in 2018 to all Company staff around the world and will also address human rights issues.
Moncler's remuneration system is designed to attract, motivate, and retain people with the professional skills required to grow the Group's business. It is based on the principles of fairness, equal opportunity, and meritocracy.
As a listed company, Moncler's Remuneration Policy for Group directors and strategic executives is in line with the recommendations set forth in the Corporate Governance Code for Italian Listed Companies issued by Borsa Italiana. The Policy was defined with the contribution of the Human Resources Department, the Nomination and Remuneration Committee, the Board of Directors, and the Group's shareholders through the Annual Shareholders' Meeting (see the Report on Remuneration, available in the Governance section at www.monclergroup.com).
Remuneration for Company employees takes into consideration specific criteria, including market standards and internal fairness, roles and responsibilities, and distinctive skills and competencies, with every effort made to ensure the highest levels of objectivity to prevent any form of bias or discrimination. Annual compensation reviews are based on meritocracy, rewarding talent based on business results and individual performance outcomes.
In every country in which it operates, Moncler offers entry-level salaries equal to or above the minimum wage provided for by law or collective bargaining agreements, with no substantial difference between genders. And this was confirmed by the findings of an analysis conducted in 2017 on the entire Group workforce, including the production site in Romania.
The salary structure of 92% of professionals, managers, executives, and senior executives includes both fixed and variable components, balanced on the basis of the Company's strategic objectives. The variable component may be short-term (Management By Objectives for store managers and corporate employees, sales commissions for retail personnel, and performance bonuses for people employed at the corporate offices in Trebaseleghe, Italy) or long-term (stock option and performance share plans).
The Management By Objectives (MBO) system focuses mainly on quantitative targets related to overall Group performance (including EBITDA) and to specific functions and roles. These quantitative targets are mainly economic and financial in nature, whereas the qualitative targets relate to strategic and operational activities.
As an incentive to achieve outstanding results, there are mechanisms in place to reward over-performance, with higher bonuses offered when performance targets are exceeded by a certain threshold.
All those involved in the implementation of the Sustainability Plan are assigned social and/or environmental targets under the MBO system.
Since 2016, an individual sales commission system is in place for store client advisors (who are increasingly becoming a strategic asset) in addition to the team commission structure already in place. It applies to the top performers at each store, and is based on the quantitative and qualitative assessment of sales results.
With regard to long-term incentive programmes, Moncler offers both stock option and performance share plans. These plans enable linking the incentives for Group managers and key figures to the actual performance of the Company; steering resources towards strategies that focus on medium and long-term targets; aligning the interests of beneficiaries with those of shareholders and investors; and developing policies to attract and retain talented professionals.
The Stock Option Plan 2014-2018 Italian Corporate Structures was devised to reward employees at the Italian corporate offices for their contribution to the growth and success experienced by the Group in recent years; it links overall remuneration (and, in particular, the employee incentive scheme) to the Company's actual performance and to the creation of new value for Moncler.
Three stock option plans and one performance share plan have been introduced since the Company's listing on the stock exchange in 2013:
See also the 2017 Report on Remuneration, available in the Governance section at www.monclergroup.com.
Remuneration packages offered to employees feature a wide range of benefits, from life insurance and pension plans to wellness options. Moncler offers employee benefits based on their professional category, irrespective of type of employment contract (permanent/temporary, full-time/part-time). Benefits are provided according to international guidelines, with possible variations depending on country-specific policies.
| Financial benefits | Employees entitled to benefits |
|---|---|
| Supplementary pension plans | 25% |
| Supplementary health plans | 26% |
| Life insurance | 10% |
| Financial support for disability | 6% |
| Company cafeteria or lunch vouchers | 51% |
| Company welfare plans(6) | 17% |
| Other7 | 29% |
| Social benefits | Entitled employees |
| Fitness/sports centres(8) | 3% |
| Wellness and nutritional programmes | 4% |
In 2017, the Company implemented the new Moncler Corporate Welfare Plan aimed at all staff, including managers, working at Italian corporate offices, who are hired with permanent contracts or with apprenticeship contracts in force at 31st December each year. This two-year initiative was designed to ensure greater care for, and attention to, the wellbeing of our people who are Moncler's true strategic asset. The Plan offers a wide range of benefits and services, some of which are also available to employees' family members, and include the reimbursement of school expenses, vouchers, leisure time solutions, wellness packages and sports courses, as well as co-pay arrangements for supplementary pension funds.
During the year, the Company's welfare initiatives included an integrated nursery and kindergarten for the children of employees at the corporate offices in Trebaseleghe (Padua, Italy), the cost of which was covered entirely by the Group. From September 2018, the selected schools will enrol 27 children of Moncler employees.
(6) In addition to the Moncler Corporate Welfare Plan, it also includes kindergartens and other childcare services.
(7) Includes benefits such as a Company car and accommodation.
(8) Includes free admission to gyms, fitness courses, and other initiatives.
Identifying and retaining the best talent is of crucial importance to the Company. In order to enhance and develop that talent, for some years now, Moncler has a performance assessment system in place that measures the skills people use to achieve their set targets. It helps us to determine how well employees fit into their role and to chart out potential training and development pathways.
The assessment is underpinned by a series of values that everyone in the Company is expected to adopt and promote: integrity, passion, identification with the Company's culture, the ability to establish relationships built on trust, global vision, performance excellence, innovation, and talent development.
Conceived to improve performance throughout the company, the assessment system has a medium-to-longterm perspective, and is thus one of the key processes for managing and developing people, identifying succession plans, and retaining the best talent in the Company.
The assessment process requires managers to appraise their respective teams annually, using a digital platform developed in 2017. Assessments are then reviewed and finalised by a committee of senior executives, who compare and calibrate them to ensure objectivity and fairness. The final step of the process involves an open discussion on the assessment between manager and employee, addressing the results achieved and the areas identified for improvement.
The retail segment uses an assessment tool adapted to the needs of that particular business, based on the same principles and mechanisms.
At present, the assessment process applies to all organisational roles worldwide, including corporate office white-collars. The process has not yet been extended to the production site in Romania. In 2017, 1,575 employees were assessed, accounting for 94%(9) of the Group's global workforce hired with permanent contracts, excluding workers. The percentage of women involved in the assessment process is in line with the number of women employed by the Company.
The assessment model of reference for corporate roles was revised in 2017 and the updated version will be applied for the 2018 assessment process for performance in 2017. In 2018, the retail channel model will also be revised, in line with the corporate model, while taking into account the specific features of this reality.
Moncler firmly believes that a skilled and competent workforce can enhance the value of the Company's human resources and contribute to increasing employee satisfaction, thus helping to improve the Company's performance. As part of this effort, the Group promotes specific employee development programmes tailored to the needs of the Regions, the various corporate functions or distribution channels. See also page 57.
For instance, in 2017, Moncler added a new figure, called Manager In Training (MIT), to the staff of its flagship stores in each Region. An MIT is a high-potential individual, who has graduated from some of the world's best universities and business schools and has an innate feel and strong passion for the world of retail. They are embedded in a specific training pathway, with the aim of becoming a store manager within a set period of time. The experience and results achieved in this area will allow them to advance further in the Company's ranks, allowing them to make the most of the hands-on skills they have gained in the core business.
(9) Percentage calculated on the total workforce with permanent contract at 2016, which served as the benchmark for the 2017 assessment process.
At Moncler, employee dialogue and engagement are the keys to fostering the motivation and satisfaction of our people, thus creating strong long-term relationships. The Internal Communication & Engagement department has been created within the Human Resources function and is tasked with developing tailored strategies, actions, and tools to engage personnel while spreading the Moncler culture.
In 2017, use of MONCamp, the corporate intranet site launched at the end of 2016, was consolidated as a tool to share information and news and to build networks among colleagues. Through MONCamp, the Company aims to increase:
The news section is based on a specific editorial plan, and features news about products, events, and people, with interviews dedicated to employees belonging to different functions or organizational levels, thus developing knowledge, sharing and a growing sense of belonging to the Moncler world. An Editorial Board has been set up to oversee and approve the editorial plan. It meets periodically and includes representatives of the Human Resources, Marketing & Communication, Investor Relations and Sustainability functions. The social vocation of the platform has also become a crucial element of communication among employees, particularly in our stores, where it is used to share sales experiences, ideas and local events.
In 2017, the team of Ambassadors, consisting of one or more employees from each business division, was further consolidated, becoming an effective empowerment tool to spread tips, ideas, and initiatives that have become an integral part of the corporate culture through news to be included in the editorial plan.
About 1,680 people, i.e., around 70% of the potential Group workforce worldwide, actively used MONCamp during 2017.
For Moncler, 2017 was yet another milestone year in broadening its dialogue with employees through the first Employee Opinion Survey conducted on the Group's workplace climate. In collaboration with a major player in the sector, a questionnaire of 45 questions was sent to about 2,000 employees worldwide, equivalent to 76% of the workforce, excluding workers. The response rate amounted to about 90%.
The survey offered a snapshot of the Company's positioning on two aspects: employee engagement and enablement. By analysing the individual elements of each one, Moncler was able to identify the strengths and areas in need of more work to increase and improve overall positioning. The survey showed that the company has clear areas of excellence, including "pride in being a part of Moncler" and "quality and attention to clients." One of the main suggestions that emerged was "collaboration and communication between departments."
A well-structured communication plan was developed before and after the launch of the survey. The MONcamp intranet site was used to raise employee awareness in the pre-launch phase with dedicated news items and, later, to inform our people of the survey's findings with two dedicated news articles. In addition to function and regional meetings, plenary meetings open to all employees were also held at the various corporate offices to share the detailed results of each organisational area.
The Company's action plan provided for the creation of functional and cross-functional work groups, in which all employees could participate on a voluntary basis, with the aim of working on issues in need of improvement through a bottom-up approach.
In 2018, the survey will be repeated to measure the first results of the measures taken. The Group believes that employee opinion surveys are a precious instrument not only to have a clear picture of the level of employee satisfaction, but also to identify corrective actions to meet the expectations and needs of the entire organisation.
MONCLER OPERATES IN AN INTERNATIONAL AND MULTICULTURAL CONTEXT. IT CHERISHES DIVERSITY AS AN ASSET TO BE ENHANCED AND AS A SOURCE OF COMPETITIVE ADVANTAGE FOR THE COMPANY.
Bringing together people with diverse expertise, experience, and socio-cultural backgrounds enables the Group to rise to the challenges of an increasingly global and borderless market.
As stated in the Code of Ethics, respect for diversity and equal opportunities and the prevention of all forms of discrimination are key principles, which Moncler is committed to guaranteeing at every step of the employment relationship, from the recruitment process and definition of remuneration packages, to opportunities for professional growth, through to the conclusion of the employment relationship.
The Group does not tolerate any form of discrimination based on race, skin colour, gender, sexual orientation, religion, nationality, age, political affiliation, trade union membership, marital status, physical or mental disability, or any other personal characteristic or condition.
In 2017, no instances of actual or alleged discrimination were detected or reported.
Moncler believes that diversity, in all its expressions, brings cultural wealth and openness, and that the true value of diversity within the Company is best expressed when each and every person is encouraged to reach his/her potential to the fullest.
The Company's awareness of the value and opportunities arising from cultural diversity is also reflected in the absolute confidence that Moncler has in its local management and personnel. See also page 54.
With regard to gender differences, women make up the majority of Moncler's workforce. Around 70% of employees are women, more or less in line with the 2016 level, and the percentage is high in all of the Group's geographic areas and in all employee categories. In particular, they account for 52% of employees at managerial level (managers, executives, and senior executives).
With regard to gender breakdown by type of employment contract, length of service, age group, and level of education, there is nothing of particular note. See also pages 108-109.
Moncler is committed to offering equal pay for equal skills, competencies, and professional experience, thus guaranteeing the principle of equal opportunity in both theory and practice without bias. For senior executives, executives, managers, professionals, and white-collars, the differences in men's and women's salary levels range between 4 and 13%; salary levels are more aligned in the managers' and workers' categories. See also page 110.
The Company is also committed to employing people with disabilities. Moncler manages diversity in accordance with the rules and practices of the laws in force, and encourages Company departments to employ differently-abled people. All new hires are managed with due respect and consideration for their needs and capabilities, providing suitable workstations and adapting work hours as required. By doing so, people are protected and empowered to give their best.
At 31 December 2017, the employees with disabilities in Italy, Romania, Germany, Japan and the United States were 38 in total. In forthcoming years, the Group is committed to taking on additional people with various levels of disability, also by collaborating with institutions specifically tasked with helping the disabled find employment.
MONCLER CONSIDERS THE PROMOTION OF HEALTH AND SAFETY AS A KEY PRIORITY OF ITS OPERATIONS. FOR THIS REASON, OCCUPATIONAL HEALTH AND SAFETY ISSUES ARE MANAGED AS AN INTEGRAL PART OF THE COMPANY'S BUSINESS AND DAILY ACTIVITIES, SO AS TO PROTECT EMPLOYEES, CLIENTS, CONTRACTORS, AND ANYONE IN ITS SPHERE OF INFLUENCE.
Moncler operates in full compliance with the applicable laws in the countries in which it is present, with an approach always focused on continuous improvement.
From the Group's headquarters, a team of specialised professionals (the Health and Safety Staff) is responsible for: ensuring that workplaces worldwide are safe and compliant with applicable laws; defining occupational health and safety guidelines; coordinating monitoring activities and, where necessary, the interventions to improve safety conditions; supervising the activities of designers and architects; and ensuring an ongoing dialogue with Italian workers' safety representatives.
Every employee plays a fundamental role in safety. Making every effort to create and spread a culture of safety, individual responsibility, and risk awareness is pivotal in ensuring a safe working environment.
A big emphasis is also placed on the safety of workers and contractors who work within the perimeter of Moncler's operations. In Italy, all business operations involving contractors require a signed risk assessment report identifying any interference risks associated with the work to be carried out on Company premises, as well as the implementation of strict prevention measures for any work considered high risk.
Among its initiatives to protect and promote health and safety in the workplace, Moncler implements an efficient management system as per OHSAS 18001 international standard. This commitment is clearly stated in the Occupational Health and Safety Management Policy, which was shared with all Group employees around the world in 2017. The Policy sets the health and safety principles and guidelines to be implemented in every sphere of activity and provides for:
In 2017, Moncler obtained certification as per the OHSAS 18001 standard for the production site in Romania and for part of its stores in Europe (France, Germany, United Kingdom, and Switzerland), while all the offices and stores in Italy that were certified in 2016 and account for over 2,000 employees (i.e., about 59% of the workforce) maintained their certification. The Company aims to extend OHSAS 18001 certification to all offices and stores worldwide by 2019.
Moncler invests a lot of thought and considerable time and energy in the management of occupational health and safety, in an effort to minimise any risk of accidents.
Although the Group's business is not high-risk, Moncler adopts a preventive approach. Before the opening of any new workplace – be it an office or a store – occupational health and safety risks are carefully evaluated through in-depth audits. Offices and stores already in operation are regularly subjected to conformity checks through document analyses and workplace inspections (verification of work environments and equipment), with improvement plans drawn up as necessary. This monitoring process, originally implemented in Italy alone, was extended in 2017 to workplaces in France, Great Britain, Germany, and Switzerland, and is expected to be gradually implemented in other countries in the coming years.
In 2017, several on-site inspections to verify employee health and safety were also carried out at the production site in Romania. These on-site inspections were conducted both by in-house staff and by external bodies and were required in view of OHSAS 18001 certification.
In Italy, Moncler organises regular safety meetings with Company representatives, specialist physicians, prevention and protection officers, and workers' safety representatives. These meetings focus on the discussion of risk assessment analyses and outcomes, injury rates, training, and personal protection equipment.
In 2017, workplace accidents were kept to a minimum through the careful management of work spaces, ongoing information and awareness initiatives centred on prevention, and the monitoring of the proper implementation of improvement measures.
| 2017(13) | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Incidence rate(10) | 5.43 | 11.61 | 2.84 | 5.60 | 6.53 | 5.22 | 1.24 | 1.29 | 1.21 |
| Severity rate(11) | 0.07 | 0.11 | 0.06 | 0.03 | 0.06 | 0.02 | 0.01 | 0.01 | 0.01 |
| Frequency rate(12) | 3.39 | 7.37 | 1.76 | 4.79 | 4.59 | 4.89 | 0.89 | 0.79 | 0.95 |
No fatal accidents were reported during the year involving employees or contractors.
(10) Incidence rate: (number of workplace injuries/total employees) x 1,000.
(11) Severity rate: (number of days lost due to workplace injuries/total hours worked) x 1,000.
(12) Frequency rate: (number of injuries/total hours worked) x 1,000,000.
(13) Data refers to a scope of assessment covering 100% of the Group's global workforce and does not therefore allow a comparison with previous years.
Occupational diseases are a direct consequence of work, caused by the worker's exposure to the gradual and progressive harmful effect of the activities being performed. The Group monitors occupational diseases in order to identify any workplace conditions that may have contributed to their onset, assess any residual risks, and implement corrective measures as needed to prevent recurrence. In 2017, no cases of occupational diseases were reported. In Italy, the Group continued to require personnel exposed to specific risk factors to undergo regular health checks, in application of specific health protocols defined on the basis of the risk, with supplementary specialist visits as needed.
All workplace accident indicators are continuously monitored and measured. See also page 111.
Since 2010, the Group has also focused on work-related stress as part of an inclusive approach to employee wellbeing. In 2015, a work-related stress assessment was carried out at the headquarters in Trebaseleghe (Padua, Italy), revealing that most of the offices were at low risk. That said, in 2016 the Company decided to implement an action plan nonetheless. The same assessment was also performed at the corporate offices in Milan (Italy), which were also found to be at low risk of work-related stress. There too, in 2017, Moncler decided to adopt an action plan.
Training its people is part of the prevention initiatives promoted by the Group.
In 2017, more than 15,000 hours of training (15% more compared to 2016) were delivered on health and safety, of which more than 14,000 at the production site in Romania. Specific training programmes were developed and customised based on different roles and risk levels, so as to transfer the knowledge, skills, and values required to work safely. The majority of employees attended a training programme on general safety in the workplace, in keeping with legal provisions. With regard to people in positions of responsibility, additional training modules were specially designed for Company managers and officers, to improve monitoring and ensure that employees' behaviours are in line with law provisions and Company regulations on occupational health and safety.
Moncler's commitment to promoting and protecting the health of its employees goes beyond the workplace and occupational risks. This explains the meaning and purpose behind the various training and information initiatives organised by the Company, with the support of the Umberto Veronesi Foundation, on healthy lifestyles, the risks of smoking and the importance of vaccination. The initiatives organised during the year took place in Italy, and involved approximately 420 people for a total of more than 2,500 hours of training. Beyond the purpose of training, they were highly appreciated for being an important moment of interaction, giving employees the opportunity to voice their concerns and seek advice from highly-experienced specialists.
Alongside these initiatives, Moncler is committed to establishing agreements with local outpatient clinics, to ensure employees have access to the best medical centres at the most affordable prices.
MONCLER ACKNOWLEDGES AND RESPECTS THE RIGHT OF WORKERS TO BE REPRESENTED BY TRADE UNIONS, AND MAINTAINS AN ONGOING RELATIONSHIP WITH UNION REPRESENTATIVES BASED ON MUTUAL RECOGNITION, DIALOGUE, AND COOPERATION.
Dealings and negotiations with trade unions are managed according to the highest standards of transparency and integrity and in strict compliance with applicable laws.
In Italy, Romania, France, Belgium, Austria, the Netherlands, and Spain, all employees, i.e., 55% of the global workforce, are covered by collective bargaining agreements.
Moncler's industrial relations policy is built on a commitment to constructive dialogue, aimed at engaging workers' representatives and maintaining a good working atmosphere. The search for shared solutions results in the total absence of conflict.
Once again, thanks to the climate of cooperation built by the Company over the years, in 2017 no strikes or union protests were organised against Moncler by workers employed by Group companies. Similarly, there were no reported cases in which freedom of association and the right to collective bargaining were undermined or placed at risk.
During the year, several meetings with trade unions were held at the headquarters in Trebaseleghe (Padua, Italy), heart of all Group operations. The main issues discussed regarded the progress of the Company's mandatory health and safety training programmes and the schedule of closing days. In addition, in December 2017, a second-level company agreement was signed with trade union representatives in Italy granting all employees of the Group's Italian companies, who will become fathers as from 1 January 2018, a total of five days of paternity leave, i.e., one more than that established by law or the national collective labour agreement. A second-level agreement was also reached to raise the Company's contribution to supplementary pension plans for all employees in Italy as from 1 January 2018, bringing it to 2.5% for all employees who will pay a contribution of no less than 2.5% to the negotiated supplementary pension funds.
Although the Group did not make any collective layoffs in 2017, Moncler is aware that certain strategic decisions can have repercussions for employees. Accordingly, in the event of significant organisational changes (such as the reorganisation of processes or other significant interventions), the Group is committed to activating the disclosure and consultation procedures provided for by law.
RELATIONSHIPS WITH THOSE WHO NOT ONLY DEMONSTRATE TECHNICAL AND QUALITY EXCELLENCE AND RELIABILITY, BUT ALSO SHARE OUR VALUES AND OUR SOCIAL, ETHICAL, AND ENVIRONMENTAL PRINCIPLES.
SUSTAINABLE MANUFACTURING, ATTENTION TO HEALTH AND SAFETY, AND THE RESPECT FOR HUMAN AND WORKERS' RIGHTS, THE ENVIRONMENT AND ANIMAL WELFARE ARE THE INGREDIENTS THAT MAKE A TRUE QUALITY PRODUCT.
OUR SUPPLIERS ARE ESSENTIAL PARTNERS IN THIS COMMITMENT.
MONCLER BELIEVES IN THE VALUE OF STABLE RELATIONSHIPS BUILT ON TRUST AND COOPERATION, AND SEEKS LONG-TERM RELATIONSHIPS WITH SUPPLIERS THAT NOT ONLY GUARANTEE RELIABILITY IN THEIR MANUFACTURING PERFORMANCE, BUT ALSO ENDORSE THE SAME VALUES AS THE GROUP.
At year-end 2017, approximately 409 suppliers(1) were involved in the manufacture of Moncler's products. They are grouped into four categories: raw materials, façon, finished products, and services.
Over the years, Moncler has rationalised its supply chain by progressively reducing the number of suppliers, in an effort to gain greater control over supply and develop stronger and more profitable synergies and partnerships with those who share the Group's values and expectations, also in terms of environmental and social standards. Where possible, the Group avails itself of local suppliers situated near its main offices, which simplifies logistics and generates income and jobs across the local communities in which the Company operates.
(1) Excluding prototype and pattern making suppliers, and suppliers with sales orders of less than 1,000 euros per year.
The majority of Moncler's suppliers (93%) are located(3) in EMEA, primarily in Italy. Moncler diversifies its purchasing expenditure across a number of partners so as to avoid dependency on any given supplier, which would pose a potential business risk. The Company's top 50 suppliers account for about 70% of the total value of orders. The Group is careful to promptly identify any critical situations with the potential to cause supply disruption, addressing them accordingly so as to mitigate any consequences and thus ensure continuity.
(2) Percentage calculated on the total number of suppliers.
(3) For façon manufacturers and finished product suppliers, the geographic location corresponds to the country the product was 'Made in'; for service and raw material suppliers, it corresponds to the country in which the supplier's head office is registered. Percentage calculated on the total number of suppliers.
AT MONCLER, EXCELLENCE MEANS QUALITY, STYLE, AND ELEGANCE, BUT ALSO COMMITMENT TO PROMOTING RESPECT FOR WORKERS' RIGHTS, ANIMAL WELFARE, AND THE ENVIRONMENT ACROSS THE SUPPLY CHAIN.
Suppliers are strategic partners and Moncler's relationship with them goes beyond strictly economic and commercial aspects. The Group is actively engaged in the continuous sharing of best practices, so as to ensure responsible and sustainable business growth as per the
principles of the Group's Code of Ethics, which all partners(4) are contractually required to know and comply with and to ensure their compliance also by their subcontractors. Any violation of the principles set out in the Code constitutes a serious breach of contract that entitles Moncler to terminate the contract in place immediately.
In 2016, the Group formalised and disseminated the Supplier Code of Conduct and related operating instructions in order to provide even more precise guidance to its partners.
The Supplier Code of Conduct is consistent with the Universal Declaration of Human Rights and the main conventions of the International Labour Organization (ILO), and illustrates Moncler's expectations regarding responsible purchasing. It consists of six sections (Labour and Human Rights, Occupational Health and Safety, Environment, Animal Health and Welfare, Safety and Quality of Products and Services, and Corporate Ethics) and sets forth the mandatory requirements to become or continue to be a supplier of the Moncler Group.
The main requirements of the Code of Conduct were illustrated at a training event held during the convention with the Group's national and international suppliers involved in the production of jackets that was held in February 2017 at the corporate headquarters in Trebaseleghe (Padua, Italy). In addition, a section dedicated to online training was added to the supplier portal, which was also implemented in 2017.
Also in 2017, Moncler continued its commitment to conduct ethical, social and environmental audits on its supply chain to verify compliance with applicable laws and the principles set out in the aforementioned Codes. In line with previous years, the audits were conducted by a qualified and experienced independent body to ensure maximum impartiality.
Social and ethical audits focus on fundamental human and workers' rights, particularly on forced labour, child labour, freedom of association, working hours, minimum wages, and – last but not least – occupational health and safety. In 2017, the Company concentrated its attention on auditing all its façon manufacturers (of jackets - Tier 1) and on a significant sample of suppliers of other commodity groups.
Environmental and waste water audits were conducted with a specific focus on suppliers with internal production departments and on the analysis of their policies and processes to minimise impact.
The scope of the audits and the suppliers and subcontractors to involve in the audits are determined by the Internal Audit division based on a risk analysis, which takes into account various factors, such as the amount of orders placed with the given supplier, the type of good or service provided, and geographic location. The risk analysis also considers other parameters, such as the supplier's number of employees and plants, and/or the use of subcontractors and their geographic location. The outcomes of previous audits are also an important selection criterion.
Additionally, audits were conducted on animal welfare and down traceability as per the DIST Protocol (Down Integrity System & Traceability) across the entire down supply chain. See also pages 76-77.
In 2017, a total of 60 social and ethical audits were performed (on both suppliers and subcontractors), covering 81% of total jackets produced by façon manufacturers, 46% of knitwear, 41% of soft accessories (footwear and bags), and 100% of the volume of down purchased from direct suppliers. A total of 10 environmental audits were carried out on a sample of raw material suppliers (in particular fabric, down and suppliers with in-house galvanic processing). Additionally, 85 audits were also conducted on animal welfare and traceability across the down supply chain (covering 100% of the value of the purchased down).
SUPPLY CHAIN AUDITS (NUMBER)
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Social and ethical audits | 60 | 41 | 45 |
| Animal welfare and traceability | 85 | 119 | 120 |
| Environmental audits | 10 | 14 | - |
| of which on waste water | 4 | 3 | - |
| Total | 155 | 174 | 165 |
Moncler has a zero tolerance policy against major compliance breaches, which could indeed lead to immediate contract termination. That being said, the Group is committed to raising awareness and driving continuous improvement within its supply chain, requiring the implementation of corrective measures when deemed necessary. In this case, the Group verifies that measures are implemented by an agreed deadline through follow-up audits.
In 2017, most instances of non-compliance were related to occupational health and safety, and certain aspects concerning the management of employment relationships. All non-compliance cases were addressed through corrective actions agreed upon with the suppliers, which will be verified via follow-up audits. The audits performed in 2017 did not reveal any major supplier breach requiring contract termination.
Alongside its auditing activities, in 2017, the Group also sent raw material suppliers a self-assessment questionnaire containing information on social and environmental aspects, such as whether they have management systems in place.
In selecting its suppliers, Moncler attaches great importance to ethical aspects and requires that its prospective suppliers provide adequate information and documentation to have a thorough understanding of their actual commitment in this field.
Moncler is also continuing to update its own vendor rating system by incorporating new indicators – including sustainability aspects. Each indicator will be weighted, contributing to the assessment of each supplier based on scores achieved in the different areas. The macro-areas of the vendor rating system are:
As part of its commitment to ensuring animal welfare, Moncler demands and verifies that all its down suppliers comply with the strict requirements of the DIST Protocol (Down Integrity System and Traceability), first implemented in 2015, regulating farming standards, respect for the animal, down traceability, and down technical quality. Moncler only purchases down that is DIST-certified.
Among the key principles of the Protocol that must be respected across the entire supply chain:
Moncler's down supply chain is almost entirely vertically-integrated and includes various entities: white geese farms, abattoirs where the animals are 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 manufacture the finished products downstream of the down purchasing process. All down suppliers must scrupulously comply with Protocol requirements to ensure raw material traceability, animal welfare, and the highest quality standards throughout the down supply chain. The Protocol was the result of an open and constructive dialogue within the scope of a multi-stakeholder forum (established in 2014), taking into account the expectations of the various stakeholders involved. The forum is chaired by a Professor of Management at Ca' Foscari University, in Venice (Italy), who is an expert on sustainability issues. Its members include: Moncler officers; experts from the Department of Veterinary Medicine at the University of Milan (Italy), from the Polish National Institute of Animal Husbandry (Koluda Wielka), and from Compassion in World Farming, an NGO dedicated to the welfare of farm animals; and representatives from certification and consulting firms (Bureau Veritas, Control Union, IDFL, and KPMG).
In November 2017, the fourth multi-stakeholder forum was held to discuss Protocol updates to make it even
more stringent; the new Protocol release will be approved at the beginning of 2018.
The DIST Protocol assesses animal welfare using an innovative approach. In fact, alongside the traditional approach that focuses on the animal's environment (in terms of availability of food and water, space to pasture, etc.), it also provides for the careful observation of the animal itself (as per recent European Commission guidelines), through the so-called Animal-Based Measures (ABMs)(5), which enable the direct assessment of the animals' conditions 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 behaviour or aspects such as feather-pecking(6), 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 inappropriate animal management methods. Another important and innovative indicator introduced by the Protocol regards the human-animal interaction, which is assessed according to the responses to a specific test (HAR test, Estep and Hetts, 1992).
(5) The 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. These measures 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.
Moncler believes that, in order to have a significant impact on animal welfare and enable continuous improvement, it is important not to impose but rather explain, share, and involve its suppliers, so as to ensure a long-term joint commitment. Throughout 2017, the Company shared information material with them in an effort to support the dissemination of good farming practices across their respective supply chains. In 2018, Moncler will continue along this path to raise awareness by disseminating information material for slaughterhouses.
Moncler is continuously committed to verifying Protocol compliance in the field. To ensure the utmost impartiality:
An important change in 2017 was the inclusion in all Moncler jackets of the "DIST certified down" tag starting with the autumn-winter 2017 collections. This milestone was achieved by extending down traceability as per the DIST Protocol across the entire supply chain, including the finished product. This result was made possible by the extensive auditing activities on jacket façon manufacturers.
In 2017, 85 independent audits were conducted, some of which were attended by Moncler officers as well as experts from the University of Milan's Department of Veterinary Medicine. Although the down suppliers have made use of the best supply chain available, some of them were required to take corrective actions before obtaining certification. No instances of live-plucking or force-feeding were observed at any of the farms audited.
In addition to these audits to verify compliance with the DIST Protocol, other checks were carried out focusing on human and workers' rights. Some instances required the definition of specific improvement plans, the implementation of which will be verified via follow-up audits.
Moncler is aware that these results, however significant, are not a finish line but rather a new starting point, and its duty is to continue to promote increasingly ambitious standards, also based on the insights offered by its stakeholders.
SUPPLIER RELATIONS ARE A STRATEGIC ASPECT FOR MONCLER. CONSTANT COMMUNICATION AND INTERACTION ARE ESSENTIAL TO PROMOTING PROFITABLE COLLABORATIONS AND MUTUALLY BENEFICIAL RELATIONSHIPS.
The dialogue with suppliers is encouraged through regular institutional meetings and through daily interactions with the Moncler experts and inspectors tasked with overseeing the various activities involved in production. Indeed, Moncler's experts provide specialist support at all stages of production in order to share technical know-how and resolve any critical issues. An ad-hoc supplier web portal went live in 2017. It allows suppliers to directly access communications and documents, including the Code of Ethics, the Supplier Code of Conduct, and related operating instructions. It also includes a section dedicated to online training.
The experts in charge of the external workshops manufacturing jackets are regularly invited to visit Company offices to help analyse samples and share technical and production standards. Similarly, external knitwear workshop experts are invited at least once every season to train for one week alongside Moncler experts, focusing on procedures and on production and quality standards, with visits to the Group's quality control centres. At these seasonal meetings, experts also receive training on other topics relevant to Moncler, including ethical, social and environmental aspects as part of the Group's effort to spread its culture among suppliers. Moncler experts visit the various third-party production sites as well. The shared know-how thus becomes an integral and essential component of the bond between the Company and its suppliers.
In February, in an effort to further promote mutual knowledge, strengthen its relationship with the supply chain, elaborate on contractual and operational aspects, and involve its partners in its journey towards sustainability, Moncler organised a meeting at its corporate offices in Trebaseleghe (Padua, Italy) with its national and international suppliers involved in the production of jackets. The meeting addressed several topics, including quality, down traceability and management, safety, brand protection issues, and responsible sourcing principles. Awareness-raising activities on ethical, social and environmental issues continued during the year through one-to-one meetings at the production facilities of some façon manufacturers. Building on these achievements, in 2018, the Group aims to continue its supplier dialogue and engagement initiatives on these aspects.
THE IMPORTANCE OF THE CLIENT EXPERIENCE QUALITY THE FIGHT AGAINST COUNTERFEITING TRANSPARENT AND RESPONSIBLE COMMUNICATIONS
WE AIM AT ABSOLUTE QUALITY FOR OUR PRODUCTS AND PROCESSES. WE ARE COMMITTED TO INNOVATE – ALWAYS – WHILE STAYING TRUE TO OUR TRADITION, AND TO PERFORM AS A RESPONSIBLE COMPANY, INVOLVING OUR CLIENTS AT ALL TIMES AND DELIVERING THE BEST SERVICE POSSIBLE. THIS IS THE ESSENCE OF MONCLER'S CORPORATE STRATEGY, AND THE KEY TO THE LONG-TERM SUCCESS OF THE BRAND. HERITAGE, UNIQUENESS, QUALITY, AND INNOVATION ARE THE TERMS THAT BEST
DESCRIBE MONCLER'S CONCEPT OF
AT MONCLER, CLIENTS TAKE CENTRE STAGE. EVERY INTERACTION IS AN OPPORTUNITY TO RECEIVE AND LEARN, AS WELL AS TO SHARE AND ENGAGE. TO MAKE THE SHOPPING EXPERIENCE EVEN MORE CAPTIVATING, MONCLER HAS LAUNCHED AN AMBITIOUS RETAIL EXCELLENCE PROJECT.
In 2016, Moncler began to implement the Retail Excellence project, spanning a three-year period and covering 15 areas of intervention. It aims, among other things, to redesign the client experience, reorganise both stores and sales staff, and redefine store procedures and operations. The essence of each intervention is to design through the eyes of the client, which is key to achieving the sole objective of the project: to enhance the shopping experience for clients, involving them more and more in Moncler's world.
The many activities implemented in 2017 are all geared to building a direct relationship between our Client Advisors and clients. And training has been crucial. The new courses delivered through the Moncler Instant Sharing programme centred on the selling ceremony were designed to strengthen above all the key role of store managers in coaching the retail staff. Nurturing the growth of retail employees' skills and expertise is a strategic lever and a means to differentiate the Brand. The continuous training provided to boutique personnel focuses on the understanding of the Brand, its history, products, style, materials, and production processes, and on the interpersonal skills and style required to best engage with clients. More importantly, it emphasises the importance of listening and relating to clients, essential to providing a service that truly meets expectations.
The MonClient project too has been completed by extending it to 152 boutiques around the world and allowing approximately 1,000 Client Advisors to establish a direct and personal communication channel with their most loyal clients via their smartphones. In particular, in 2017, the Retail channel saw the launch of over 120 programmes centred on interaction with clients. They were designed to increasingly transform Client Advisors into genuine Brand ambassadors who are able to engage clients at an emotional level through storytelling, attention to detail, and opportunities to dialogue with Moncler and its world and to create a deeper appreciation of different perspectives and of the Company's sophistication. Smartphones are no longer simply a means to contact clients and are becoming increasingly a comprehensive and precious tool for Client Advisors. Today, 160 Client Advisors around the world are already completing sales transactions directly on their device making the selling ceremony in the store even more enjoyable.
Client relations are being expanded to include the after-sales experience. In this field, Moncler has developed a single global policy. In 2017, a specific organisational unit dedicated to improving this service identified a select group of tailor shops that are able to guarantee quality and efficiency in repairs, providing them with kits to help them deliver an even faster service. Projects aimed at improving the management of the after-sales experience are also planned for 2018, including training initiatives tailored to Client Advisors to provide them with the technical and relational skills needed to handle more complex situations.
The relational skills of sales staff are not the only ingredient of a gratifying shopping experience. The ambience and comfort of our stores and boutiques are just as crucial. That's why we have launched the Store Design project. Its goal is to make our stores and sales points increasingly efficient and comfortable for both our clients and Client Advisors. The identified actions include reorganising spaces, ensuring that store personnel always have the most effective and functional tools and technologies, and constantly monitoring safety.
Listening to clients is a strategic choice when it comes to aligning the services offered with client expectations and with what really matters to them.
Already in 2017, Moncler implemented a project in Europe and the United States providing for the systematic collection of client feedback after each purchase through a brief questionnaire exploring different aspects of the shopping experience, including hospitality, personalisation, and service. In addition to identifying and redressing any cases of customer dissatisfaction, the project aims above all to support and help Client Advisors focus even more on gaining an in-depth knowledge of its clientele to offer a service that fully meets its expectations. And now, in the early months of 2018, this service is available in Asian markets and is planned to be extended to tourist clients in the second half of the year.
In following this path, the Group launched the internal Client Service project in 2017. Fully operational in Italy, it will be implemented at European level in 2018. The goal is to cover all Regions in three years. This is not only a service unit set up to be the exclusive reference point for clients, but it is conceived to be a channel for a two-way dialogue between Moncler and its clientele with a view to continuous improvement.
In particular, this project is a milestone along the path that Moncler has charted out. It marks a new line of action for the future, namely the omni-channel approach, which spans from the redesign of the client experience in our boutiques to the reboot of the Moncler client experience on all channels of interaction with the Brand.
QUALITY IS AT THE HEART OF ALL OUR CHOICES.
MONCLER PURSUES UNCOMPROMISING QUALITY EXCELLENCE AT ALL TIMES.
Product quality and safety are at the centre of our attention. That's why we implement stringent controls along the entire value chain. Each and every Moncler product is designed and manufactured under the Company's direct and close supervision. The Group manages the creative stage, the development of prototypes, and the purchase of raw materials (including accessory components) internally, while it closely oversees the manufacture of final products at its production site in Romania or outsourced to external suppliers.
Quality and safety are priorities that we pursue already from the design of our clothing and purchase of the raw materials. The quality of the down, nylon, and all other fabrics, as well that of the raw materials used, is crucial to guarantee the excellence and safety of the final product. For this reason, Moncler selects its suppliers very carefully, and constantly subjects all materials to strict tests to identify their chemical composition and physical and mechanical features, which are essential to ensure the desired technical performance. Moncler requires all its production partners to perform in full compliance with the most stringent international regulations relating to hazardous and potentially hazardous chemical substances, including the European Union's REACH(¹) regulation, China's GB(²) standards, and JIS(3) standards in Japan. They are also required by contract to comply with the guidelines of the Restricted Substances List (RSL), which outlines the most stringent standards for the use of certain substances, and is constantly updated as per the best international standards and regulatory developments. The proper implementation of RSL guidelines is verified through tests performed at independent specialised laboratories, at the request of the supplier and/or Moncler itself. Accessory components used in production undergo additional testing to ensure their technical compatibility with fabrics and garment care (i.e., their reaction with washing detergents). Fabrics are tested for their physical-mechanical properties, such as resistance to water, pilling, colour fastness, seam slippage, tearing strength, breathability, etc.
Moncler accepts no compromise when it comes to quality. If materials do not pass the required tests, the purchasing process is suspended until the supplier can demonstrate it is able to deliver a product that fully complies with all requirements.
(1) Registration, Evaluation, Authorisation, and restriction of CHemicals.
(2) National Standard of the People's Republic of China.
(3) Japanese Industrial Standards.
Before selecting a production supplier, Moncler's quality assurance experts will first verify that the prospect has the technological capacity and is adequately equipped to produce garments that meet all standards required by the Brand, and that it can ensure consistent and reliable levels of quality. The experts will then perform weekly checks to verify the progress of the supply process and compliance with the required product quality standards. Before starting the production process, every model undergoes a series of fittings to verify every detail and consistency with design and model specifications, and to ensure maximum comfort and wearability. Prior to sale, all products undergo a final inspection to verify aesthetics, quality, size, and that they have the proper labels and tags. In this final stage, the anti-counterfeiting protocol is checked and activated using sophisticated last-generation technology.
Down is the most important thing to Moncler. Since the beginning of the Company's history, down has been at the heart of every Moncler jacket, gradually becoming the identity of the Brand itself.
Many years of experience combined with continuous research and development have enabled the Company to gain unique expertise in this area, in terms of knowledge not only of down as a raw material, but also of outerwear manufacturing processes. Moncler requires all its suppliers to comply with the highest quality standards, which have always been - and indeed remain - a key aspect differentiating Moncler's products. But the Company's notion of quality goes even further: indeed, when purchasing raw materials, the origin of the down used and respect for animal welfare are as essential and important as the quality of the down itself.
The technical quality of Moncler's down is the result of a well-structured process that ensures that only the best white goose down is used to make its garments. Each batch of down undergoes a two-step inspection procedure to assess its compliance with 11 key quality parameters, including health and cleanliness, set according to the strictest international standards and to stringent Company requirements. The procedure involves a series of sophisticated analyses carried out by an accredited independent body, followed by further tests at Moncler's own laboratory performed by highly-specialised down technicians. A total of about 720 tests were performed in 2017.
Down cluster content and fill power are the main indicators of down quality. Moncler's products contain at least 90% down clusters and only 10% feathers/small feathers. This high percentage of down cluster guarantees a high fill power, which is the amount of volume occupied by the down: the higher the fill power, the better the down's performance in terms of lightness, thermal capacity, and insulating properties. Moncler's down boasts a fill power equal to or greater than 710 (cubic inches per 30 grams of down), resulting in warm, soft, and lightweight products delivering unique comfort.
THE FIGHT AGAINST COUNTERFEITING IS YET ANOTHER ELEMENT OF OUR ATTENTION TO CLIENTS. MONCLER IS CONSTANTLY ENGAGED IN GUARANTEEING THE VALUE AND AUTHENTICITY OF ITS PRODUCTS, TO PROTECT ITSELF AS MUCH AS ITS END CLIENTS.
Moncler's approach to the fight against counterfeiting is built on a track record of many years of dedicated commitment to guaranteeing utmost protection to our clients. This is the guiding principle of Moncler's global strategy pursued by the Brand Protection&Intellectual Property Department.
Our strong portfolio of trademarks, designs, patents, and Brand and domain names can be rightly considered the weapons that we use in countering the production, distribution, and sale of counterfeit merchandise. By enforcing, maintaining, and safeguarding them, Moncler is able to protect its intellectual property rights in geographic areas of current and prospective commercial interest.
The fight against counterfeiting is waged at multiple levels and on all channels, both offline and online. Over the years, we have invested a great deal of resources in developing anti-counterfeiting systems, collaboration, awareness raising and inspection activities.
To date, all Moncler products feature a complex anti-counterfeiting system based on the most sophisticated Radio Frequency Identification (RFID) technologies currently available on the market. This new authentication-tracking system provides for the generation of a unique alphanumeric code, a QR code, and a Near Field Communication (NFC) tag. By registering their purchases on the code.moncler.com website, which is managed directly by the Company, clients can establish a direct dialogue with Moncler and verify product authenticity. Moncler has also created a special service dedicated exclusively to counterfeiting issues to further assist its clients. Where necessary, Moncler prepares expert reports for any deceived clients attempting to recover the amount paid for a counterfeit product from their electronic payment service providers.
Digital channels are another crucial front in our fight against counterfeiting. Our monitoring and enforcement activities also span the main sales platforms, search engines, and active websites. In 2017, special efforts were made to counter the publishing of sponsored ads and accounts promoting the sale of counterfeit Moncler merchandise on major social networks. In 2017, through constant surveillance of online channels, the Company was able to shut down about 69,000 online auctions of counterfeit Moncler products and 2,500 websites promoting the sale of counterfeit merchandise, to delist almost 170,000 pages featuring counterfeit products, and to delete about 15,500 pages and sponsored ads on social networks promoting the sale of counterfeit products. As part of the fight against online counterfeiting, the Memorandum of Understanding project, promoted by the European Commission and signed in 2016 between leading brands and European e-commerce platforms, continued its activities aimed at establishing a solid collaboration to counter the presence of counterfeit products online.
Moncler also carries out a thorough and constant control activity on its finished product suppliers through periodic checks at the workshops where logoed material and anti-counterfeiting tags supplied by the Group are managed and applied. A total of 30 Brand Protection audits were conducted in 2017. Feedback on the results of the audits and periodic training at workshops on Moncler guidelines on the management of logoed material and anti-counterfeiting tags ensures constant and progressive improvement in the production process.
Dialogue, awareness raising, and cooperation within the Group and with authorities are key factors in this effort. A constant and synergistic relationship between corporate functions allows Moncler to analyse, evaluate, and strategically define the best methods to protect new products, processes, and projects starting from the drawing board. Events have been organized to raise awareness among the various functions on intellectual property issues related to their activities, spanning from style, through product development, to communication.
The Group is also engaged locally in close knit cooperation with the main customs and law enforcement agencies around the world to identify counterfeit Moncler products, issuing, where necessary, an expert report attesting to their illegal nature. In 2017, the Company's main brands were registered with new customs agencies, among which Taiwan with aim of covering Greater China. We continued successfully to deliver training sessions to law enforcement officers to train them in, and raise their awareness on, Moncler's products, lines, and intellectual property rights. In 2017 alone, we held 64 training sessions for those authorities tasked with blocking and inspecting products in transit and for local law enforcement agencies. We also organised the first training and awareness-raising event for the Carabinieri, Italy's military police corps. This unceasing collaboration allowed us to manage almost 2,800 seizures worldwide, clearing the market of more than 87,400 counterfeit Moncler finished products and almost 790,000 items branded with non-authentic logos and labels for the production of counterfeit clothing and accessories. In achieving these results, a crucial role was also played by the coordinated monitoring and investigation activities carried out with teams of local investigators and attorneys who made it possible to uncover individuals and companies behind the distribution and sale of counterfeit products.
Moncler also protects its brand by participating and collaborating as an active member of the main national and international associations against counterfeiting, including INDICAM in Italy, QBPC in China, UNIFAB Tokyo in Japan, UNIFAB in France, and ACG in the United Kingdom, as well as INTA and BASCAP at global level.
MAXIMUM TRANSPARENCY AND CLARITY ARE MONCLER'S RALLYING CRY UNDERPINNING ALL BRAND MARKETING AND COMMUNICATION ACTIVITIES TO PROMOTE ITS PRODUCTS.
Although the Group does not currently adhere to any specific codes or voluntary standards in advertising, it has always taken a highly responsible approach to marketing communications. All images and messages delivered through any communication channel are carefully vetted to ensure that they accurately convey Company values, respect human dignity, are non-discriminatory, and do not depict violent behaviour or dangerous conduct. An even greater attention is given to marketing communications related to children's collections, which must guarantee absolute and constant respect for the fundamental principles underlying the protection of minors. To this effect, Moncler fully complies with all applicable regulations in force in each country in which it operates. As evidence of this unrelenting commitment, Moncler's product marketing communications, advertising, and sponsorships have never once breached any regulations in force.
As part of the Group's commitment to enforce responsible communication with clients, great importance is also placed on product labelling, which must deliver clear, transparent, and accurate information. Moncler guarantees full compliance with all national and international labelling regulations in force. Accordingly, the Group works closely with its suppliers to obtain reliable information on the materials and processes involved in the various stages of production. All Moncler products feature a global label providing accurate information on the composition of all materials and components, washing and care instructions, and country of manufacture. All information is translated into 9 languages. In addition, custom labels are applied to products to be distributed to specific markets, such as China, Japan, and Korea. Products made with specific types of materials carry additional information, such as: the common name of the animal, in the case of leather; the common and scientific name of the animal, origin, and dyeing treatment (if any), in the case of furs; and the scientific name of the animal and percentages of down and feathers, in the case of down.
Moncler's communication strategy has been relying more and more on digital channels to stay close to, and ensure, constant interaction with the Brand's clients and aficionados. Moncler is currently present across all digital channels: internet, social media, and mobile media.
Significant energy, in terms of human resources and investments, goes into to social networking, not only as a means to convey the Brand's messages, but also as a relational and clienteling tool. This applies to the main social media, such as Instagram, Facebook, and Twitter (1.1 million, 2.9 million, and 1.2 million followers, respectively, in 2017), where Moncler's engagement is growing at an impressive rate. But this is also true of mobile-oriented apps such as WeChat in APAC. Moncler launched an official account on the latter to deliver personalised client messages and Brand communications through the subscribing stores. In November 2017, it was followed by the go-live of a temporary e-commerce platform to regularly promote new initiatives dedicated to special collections. In Japan, the Company opened an official account with Line in 2016, positioning itself among the top luxury brands.
In 2017, Moncler launched its first influencer marketing projects on the US, APAC and European markets. They are aimed at increasing brand awareness through targeted social posting activities by selected microand mega-influencers to reach key market groups such as millennials.
In view of the launch of a global omni-channel strategy, aimed at strengthening not only the business but also client relationships, the Company avails itself of technologies to monitor and manage social media sentiment, transferring requests to client service or informing other relevant Company divisions tasked with addressing any sentiment signals gauged online. Detailed quarterly analyses are performed in each geographic area to assess digital users' Brand perceptions and the profiles of those interacting with Moncler online.
In July 2015, the Company's new website, www.moncler.com, was launched in 35 languages, with 5 home pages differentiated by geographic area. The website is a virtual forum in which shopping experience and brand equity are presented side by side, delivering an editorial approach and user experience that draw on the Company's physical store concept, as part of the global implementation of the omni-channel model. In October 2017, the Company kicked off the pilot phase of this strategic project, which involved the Milan Montenapoleone, Turin and London Old Bond Street boutiques with the launch of the "Click from Store," "Pick up in Store," "Return in Store," and "Product Store Availability" services (the latter only in all Italian stores, except for airports and resorts). And in December 2017, the Korean language version of the moncler.com brand website went live.
Moncler is one of the few luxury brands present on all mobile platforms available on the market. The Brand's focus on mobile technology is driven by the realisation that almost 70% of digital traffic related to Moncler is generated by smartphones. In 2017, the iOS e-commerce app was upgraded with new graphics and enhanced usability.
With regard to digital advertising, Moncler adopts programmatic ad banners and performance solutions focusing on online sales with the strong engagement of social network users. The Company's digital communications projects are always evolving and constantly growing. As part of its efforts to break new digital ground, Moncler is currently exploring new opportunities in the fields of mobile-based proximity marketing and augmented reality.
ENVIRONMENTAL POLICY AND MANAGEMENT RESOURCE MANAGEMENT AND CONSUMPTION
IN THE CONDUCT OF ITS BUSINESS, MONCLER IS COMMITTED TO PRESERVING NATURAL RESOURCES AND COMBATING CLIMATE CHANGE BY TAKING STEPS TO MINIMISE ITS ENVIRONMENTAL IMPACT.
LONG-TERM GROWTH CAN BE ACHIEVED ONLY THROUGH RESPECT AND
IT IS A COMMITMENT THAT REQUIRES THE INVOLVEMENT AND PARTICIPATION OF EVERYONE AT THE COMPANY.
AS EVIDENCE OF ITS ATTENTION TO THE ENVIRONMENT AND THE COMMITMENT TO CHARTING OUT A PATH OF CONTINUOUS IMPROVEMENT OF ENVIRONMENTAL PERFORMANCE, IN 2017, MONCLER SET OUT THE GROUP ENVIRONMENTAL POLICY, IMPLEMENTED AN ENVIRONMENTAL MANAGEMENT SYSTEM CERTIFIED UNDER ISO 14001 AT THE PRODUCTION SITE IN ROMANIA, AND CONTINUED ADOPTING SOLUTIONS TO REDUCE CONSUMPTION AND EMISSIONS INTO THE ENVIRONMENT.
In 2017, Moncler set out the Group Environmental Policy which, in addition to reasserting its constant attention to complying with all legislative and other applicable regulatory requirements, sanctions Moncler's commitment to continuously improving its environmental performance, minimising the impact of its production site and facilities (offices, warehouses, and stores), as well as its activities, services, products and logistics. Moncler makes substantial investments in the technical, economic and professional resources it needs to fully achieve its policy objectives. The document is available in both Italian and English, and can be downloaded from the Group intranet portal and corporate website.
A tangible result testifying to Moncler's commitment and investments in environmental protection is the ISO 14001 certification obtained in 2017 for the production facility in Romania. The Group aims to continue this improvement process targeted at obtaining ISO 14001 certification for its environmental management system in place at its corporate offices in Italy.
With regard to direct environmental impacts (scope 1 and scope 2), i.e., those caused by offices, stores, logistics centres, and the production site in Romania, the Group concentrates its efforts mainly on:
Given the nature of Moncler's business model, in which production is mainly outsourced to external suppliers, its most significant environmental impacts are indirect. The Company uses its influence insofar as possible to promote sound environmental practices among its production and logistics suppliers, in an effort to limit the indirect impact generated by the production and distribution of its products.
In addition to heating, air conditioning, lighting, and computer equipment, Moncler's energy consumption is mainly related to the production activities at its site in Romania.
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Direct energy consumption | 6,846,732.75 | 5,545,428.09 | 2,184,123.04 |
| From non-renewable sources: | |||
| Natural gas(1) | 4,278,224.09 | 2,723,458.50 | 2,182,656.00 |
| Diesel(2) | 2,469,692.90 | 2,697,831.52 | 1,467.04 |
| Fuel(2) | 98,815.76 | 124,138.07 | N/A |
| Indirect energy consumption(3) | 15,310,797.63 | 13,603,169.64 | 8,273,353.50 |
| Electricity from non-renewable sources | 10,271,534.25 | 10,076,736.29 | 7,435,554.50 |
| Electricity from renewable sources | 5,039,263.38 | 3,526,433.35 | 837,799.00 |
| Total energy consumption | 22,157,530.38 | 19,148,597.73 | 10,457,476.54 |
| Total energy consumption/number of employees |
6,513.09 | 6,346.90 | 7,085.01 |
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Direct emissions (scope 1) | 1,636.36 | 1,437.74 | 403.00 |
| From non-renewable sources: | |||
| Natural gas(1) | 787.88 | 502.34 | 402.59 |
| Diesel(2) | 826.94 | 904.11 | 0.41 |
| Fuel(2) | 21.54 | 31.29 | N/A |
| Indirect emissions (scope 2) | 5,480.05 | 5,163.81 | 3,944.61 |
| Electricity from non-renewable sources | 5,480.05 | 5,163.81 | 3,944.61 |
| Electricity from renewable sources | - | - | - |
| Total emissions(4) | 7,116.41 | 6,601.55 | 4,347.61 |
| Total emissions/number of employees | 2.09 | 2.19 | 2.95 |
(1) For 2016, figures include direct consumption in Italy and Romania only, which account for about 82% of the total cost of natural gas. Increased consumption in 2017 is due to the broader scope of reporting, which covers the total cost of expenditure in natural gas (except for cases where the data is managed by the host department stores). (2) In 2017 and 2016, the monitoring of consumption and emissions includes the car fleets in Italy and Romania (which accounts for about 100% of the company fleet). The 2015 data were not available (n/a).
(3) The increase in indirect consumption in 2016 and 2017 compared to 2015 is due to a progressive and significant expansion of the scope, which in 2017 covers the entire Group. (4) The coefficients used to calculate emissions were published by: DEFRA (Department for Environment, Food & Rural Affairs) in 2015, and the Department for Business, Energy & Industrial Strategy (BEIS) in 2017. The calculation of CO2eq (which includes CH4, NO2, HFC, PFC, and SF6 emissions when present) was carried out in accordance with the indications of the "Global Warming Potential" guide. It is based on the latest scientific studies of the Intergovernmental Panel on Climate Change (IPCC): "IPCC Fourth Assessment Report, (AR4)."
In 2017, 100% of the energy purchased in Italy came from renewable sources.
During the year, the Group also assessed the environmental impact of its employees' business travel. Based on a number of employees accounting for 53% of the total workforce, travel by air, train, and car in 2017 generated approximately 1,490 tonnes of CO2 emissions.
In order to reduce the carbon footprint of the company car fleet, low environmental impact cars will be introduced during 2018.
In addition to the major goals achieved in 2017, as illustrated above, including ISO 14001 certification of the environmental management system at the Romanian production site and the use in Italy of 100% green energy, the Group is currently implementing several initiatives across its shops and offices, and at the production site in Romania, to reduce energy consumption and CO2 emissions. They range from gradually replacing traditional lighting systems with LED lights, to using green ICT technologies, to identifying new methods to use energy more efficiently, to mitigating the environmental impact of employees' business travel.
With regard to improving the efficiency of lighting systems, thanks to the investments made in 2017, to date, 93%(5)of stores worldwide (100% in the United States and over 97% in Europe) are equipped with Light-Emitting Diode lights. Latest-generation LED technology delivers high-quality lighting and about 50-70% in energy savings compared to the former lighting systems, with less residual heat. In terms of environmental impact, LED lights have an average life of five years, versus the six months of traditional light bulbs, and are made almost entirely of recyclable materials. In 2017, Moncler invested about 710 thousand euros to replace traditional lighting systems with LED lights.
Further steps along the path of energy saving were made in 2017 as part of the project to renovate the corporate headquarters in Trebaseleghe (Padua, Italy). An entire area has already been equipped with more efficient lighting systems, thanks to the use of LED lamps, and insulation systems to ensure greater energy efficiency.
Moncler is also engaged in assessing sustainability requirements in the store design process in order to gain a better understanding of the initiatives that could feasibly reduce the environmental impact of stores. Indeed, in addition to style, aesthetics, sophistication, and practicality, Moncler is paying more and more attention to sustainability aspects in the design and realization of its stores. While it is fundamental that stores feature good lighting, layout, climate control, and functionality, the Group is aware that these aspects need to be managed as soundly as possible to limit their impact on the environment. Moncler relies on the market's best specialists to design its stores, choosing to work with companies offering innovative solutions that also take account of environmental protection.
Moncler is also committed to minimising the environmental impact of Information and Communication Technology (ICT) through increasingly efficient and innovative solutions and consequently providing all offices with guidelines for the purchase of environmentally sustainable IT equipment. Moncler also leverages the potential offered by new technologies that favour remote communication, reducing the impact of travel on the environment and people's quality of life, thanks also to the use of the most innovative video conferencing and telepresence systems.
(5) Excluding the 14 shop-in-shops in which lighting is provided by the host department store, where Moncler cannot take action.
To date, Moncler has 18 conference rooms equipped with modern video conferencing or telepresence technology, 4 more compared to 2016 (thanks to the set-up of new facilities at the offices in Shanghai, Hong Kong, New York, and Trebaseleghe). In theory, in 2017, these systems prevented over 19 million kilometres of business travel, estimated to be equal to approximately 2,900 tonnes of CO2 emissions(6).
Moncler is also careful when it comes to the selection of eco-efficient ICT components and equipment. The Group mainly uses multi-functional devices that print, copy, and scan all-in-one, which reduces energy consumption and simplifies maintenance. Existing devices are progressively being replaced with lower energy consumption units. Over the years, the Group has been replacing all hardware components and monitors in Italy with new Energy Star-certified devices. Energy Star is a voluntary energy efficiency programme, one of the most well-known worldwide. Developed jointly by the United States Environmental Protection Agency and Department of Energy, Energy Star was devised to reduce costs and help protect the environment through the adoption of energy-efficient products and practices. Products carrying the Energy Star label guarantee excellent energy performance.
In recent years, the Group has also continued to reduce, replace, consolidate, and virtualise its servers, which has led to considerable benefits in terms of energy consumption and related CO2 emissions. In particular, the extension of virtualisation technologies led to smaller, low-consumption servers, designed to both minimise the amount of energy required to cool the machines, and optimise the use of space and overall performance. In 2017, the virtual infrastructure used by the Moncler Group reached 305 virtual servers (50 more than in 2016, 45 at the corporate virtual centre and 5 at the virtual centre of the logistics hub in Piacenza). Finally, the server room at the production site in Bacau (Romania) was re-engineered by installing an IBM PureFlex Blade host with new data storage, which allowed the virtualisation (and elimination) of all physical servers present.
The main raw materials used by Moncler are fabrics, yarns, and down. The Company works continuously with its suppliers, requiring that production processes be structured so as to optimise material usage and cutting, thereby avoiding waste.
The same attention is given to paper and cardboard used for office purposes or product packaging, with improvement projects focusing on origin certification, the percentages of recycled content, and, where possible, usage limitations and waste sorting for recycling. An awareness initiative was implemented globally to promote the use of paper from responsible sources - i.e., those that ensure sustainable forestry practices.
(6) The reduction in emissions achieved by using video/telepresence conferencing technologies was estimated by:
- taking into consideration only video/tele conference calls lasting more than 20 minutes
- assuming an average number of four participants in each video/tele conference call
- estimating the flights avoided per each international video/tele conference call. CO2 estimates were calculated on the basis of the distance in kilometres between the cities linked via video/tele conferencing, assuming two people flying in economy class;
- estimating the road trips (by diesel-powered car) avoided per each national video/tele conference call. CO2 estimates were calculated on the basis of
the distance in kilometres between the cities linked via video/tele conferencing
- considering only one calling point and one receiving point for calls involving more than two countries (e.g., Italy, Japan, and the United States)
- calculating the emissions saved based on the coefficients provided by the Department for Business, Energy & Industrial Strategy (BEIS).
Thanks to this joint effort, 100% of the paper used in offices and stores in 2017 came from responsible sources (versus 64% in 2015 and 98% in 2016). Furthermore, still in 2017, almost all logoed material used worldwide was made of Elemental Chlorine Free (ECF) paper from responsible sources, 99% of which were ISO 14001-certified (versus 93% in 2016). With regard to packaging, the boxes used for the shipment of products sold online were redesigned. The new models introduced in 2016 are entirely made of ECF paper/cardboard from certified sources and feature over 65% in recycled content. The boxes are also more than 90% recyclable. In 2016, Moncler's eco-friendly shopping bags were distributed to all boutiques, featuring cotton components, paper that is 100% from responsible sources and 40% made from recycled material, and reinforcement cardboard that is 100% from responsible sources and 90% made from recycled material.
| Quantity (tonnes) | Renewable | Recyclable | % from responsible sources |
%ECF | |
|---|---|---|---|---|---|
| Printer paper | 30.5 | 100% | yes | 100% | 96% |
| Logoed material (7) | 82.9 | 98% | yes | 100% | 100% |
| Total | 113.4 | 99% | Yes | 100% | 99% |
| Quantity (tonnes) |
Renewable | Recyclable | % from responsible sources | |
|---|---|---|---|---|
| Delivery boxes | 1,086.33 | 100% | yes | 96% |
| Packaging boxes (8) | 263.12 | 100% | in part(9) | 88% |
| Tissue paper | 19.00 | 100% | yes | 100% |
| Shopping bags | 308.64 | 100% | yes | 100% |
Since 2016, in an effort to raise employee awareness of the environmental impacts of day-to-day activities and to promote sustainable behaviours, the corporate offices in Italy have introduced the use of personalised codes for all copying/printing activities. The goal is to enhance employees' sense of responsibility and to rationalise the number of printed documents, so as to cut toner and paper consumption. After the two 16-hour training sessions delivered last year to employees at the corporate offices in Trebaseleghe (Padua, Italy) and Milan on the topic "Paper and Printing: certifications and environmental implications," aimed, training activities were also organised in 2017 on paper certifications for employees at regional offices.
(7) Including, but not limited to, business cards, envelopes, 'with compliments' cards, repair receipt books, notebooks, catalogues, folders, stationary, and client data sheets.
(8) Packaging boxes include e-commerce as well as other boxes, such as those for gifts, eyewear, shoes, etc. As regards the new boxes used to ship products sold online, they are 100% made of paper/cardboard from certified sources.
(9) Packaging boxes are equipped with a magnet, which is non-recyclable.
The main waste generated by Moncler consists of packaging materials, office waste, and production waste (fabrics).
The Group's offices and shops are equipped with containers for waste sorting, and employees are trained on the importance of following good practices to ensure proper waste disposal and recycling/reuse. Waste sorting applies to: paper, cardboard, wood, plastic and computer equipment.
In 2017, all employees received the "10 Golden Environmental Rules," a booklet illustrating 10 good habits to be adopted at home and at work that can make an important contribution to environmental protection.
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Non-hazardous waste | 499.5 | 456.0 | 463.3 |
| paper and cardboard | 195.3 | 246.5 | 267.4 |
| mixed packaging | 140.1 | 133.0 | 133.7 |
| wood | 55.8 | 16.8 | 18.6 |
| plastic | 0.8 | 0.9 | - |
| fabrics | 59.9 | 58.7 | 43.6 |
| iron | 28.6 | - | - |
| glass | - | 0.1 | - |
| other | 19.0 | 0.03 | - |
| Hazardous waste | 5.2 | - | - |
| Total waste generated | 504.7 | 456.0 | 463.3 |
| 2017 | 2016 | 2015 | |
|---|---|---|---|
| Reuse | 465.1 | - | - |
| Recycling | 27.6 | 264.2 | 286.0 |
| Incineration | 4.2 | 51.0 | 41.3 |
| Landfill | 7.8 | 140.8 | 136.0 |
| Total waste generated | 504.7 | 456.0 | 463.3 |
(10) The 2015 data refers to the scope of Italian offices and logistics hub, and do not include waste managed directly by local municipalities. The 2016 and 2017 data also includes the production site in Romania.
The transportation of products from production chains to retail markets is a crucial part of the Group's business and a key element of its competitiveness; but it is also a significant source of Moncler's environmental impact. To this end, the Group does its best to implement logistics solutions that ensure not only operational efficiency and compliance with deadlines, but also respect for the environment.
The Group's logistics system is two-fold, featuring an industrial level covering production processes, and a commercial level covering product distribution.
Moncler's industrial logistics are organised around a single hub, located in Castel San Giovanni (Piacenza, Italy), which receives raw materials from suppliers and then forwards them to façon manufacturers (who, in turn, send finished garments back to the central warehouse).
On the other hand, the Company's commercial logistics involve multiple hubs managed centrally by the main hub in Castel San Giovanni. These hubs receive finished products from suppliers and then forward them to their final destination (third-party clients and mono-brand boutiques).
The Group has long used customised information systems to support its logistics activities, designed to ensure high levels of standardisation, integration, flexibility, efficiency, and reliability.
On the wave of the growth that the Group has registered in recent years, a project was launched in 2017 to expand and upgrade the logistics hub in Castel San Giovanni (Piacenza, Italy) with the aim of optimising logistics processes. The project also includes a broadening of the activities carried out at the hub, such as product quality control before marketing. This will clearly have a huge positive impact at a local level by creating new jobs.
Moncler supports and encourages its logistics partners to adopt sustainable systems and transport methods. Various initiatives have been implemented over the years to help minimise environmental impacts and costs, and others are currently under assessment. Four main drivers underpin Moncler's commitment towards a sustainable logistics system:
The Group has reorganized its logistics systems in recent years, focusing on the network as well as on operating procedures and processes, achieving tangible benefits in terms of efficiency and optimisation of logistics flows. Moncler has also redesigned the packaging used to transport finished goods, which has considerably reduced the volumes of goods transported, and thus the number of transport vehicles employed, thereby mitigating the environmental impact caused by air-polluting emissions. With regard to transport vehicles, Moncler is aware of the environmental impact of the different means of transport it employs. Subject to market requirements, the Group makes a conscious effort to limit, where possible, the use of air freight in favour of shipments by sea, so as to further reduce the environmental impact of its operations.
Thanks to the collaboration of its logistics partners, the Group started monitoring the CO2 emissions from road transport of finished products from the logistics hub in Castel San Giovanni (Piacenza, Italy) to all owned stores. In 2017(11), the emissions generated by the Company's key logistic partners were estimated at approximately 2,300 tonnes of CO2 equivalent.
(11) The 2017 data refers to transport both to owned stores or local warehouses and to wholesale stores.
SUPPORTING COMMUNITIES
OVER THE YEARS, MONCLER HAS PROMOTED AND SPONSORED MANY INITIATIVES IN SUPPORT OF LOCAL COMMUNITIES AND CHARITABLE ORGANISATIONS, THROUGH CASH CONTRIBUTIONS, THE DONATION OF GOODS (GARMENTS), AND ORGANISATIONAL SUPPORT TO NATIONAL AND INTERNATIONAL PROJECTS.
These initiatives relate mainly to: scientific research and prevention, social development of communities and emergency relief.
Additional activities are implemented to support local communities in Moncler's main areas of operation, in collaboration with both authorities and the population. This is made possible by the constant interaction and dialogue between the heads of the Company's main offices and local representatives and administrations, which helps Moncler understand community needs and expectations, recognise the impact of its operations on the community itself, and ensure social consensus.
In 2017, Moncler invested about 2.7 million euros(1) in local community initiatives, an increase of more than 28% compared to 2016.
(1) The figure includes both cash contributions and the donation of goods.
(2) Monetary value of volunteer hours donated by employees during regular working hours and costs incurred to organise activities.
The Group has always believed in research and innovation as key drivers for continuous development and improvement, a belief that goes beyond Company boundaries. Indeed, Moncler's commitment to promoting research includes the medical and scientific sector, which the Company actively supports through funding and grants.
In 2017, 1.3 million euros was earmarked for research grants and loans to support researchers at the Umberto Veronesi Foundation and for donations to a number of associations and foundations involved in medical research or, more in general, in supporting the ill, including the the amfAR Foundation and AIL (Associazione Italiana contro le Leucemie - Italian association against leukaemia).
The Umberto Veronesi Foundation was established in 2003 to support scientific research of excellence. Its promoters include 11 Nobel Prize winners, who form the Foundation's Honorary Committee.
The Foundation supports medical and scientific research through grants for young physicians and researchers involved in the most advanced fields of oncology, cardiology, and neuroscience.
Furthermore, it actively disseminates scientific information through of conferences, projects with schools, awareness campaigns, and publications.
In 2013, the Foundation launched the Pink is Good project to support breast cancer research and raise prevention awareness across the community. Moncler has strongly supported this project since its inception, by donating part of the revenues generated by its main Italian retail stores during one day in October every year, and by handing out information brochures to clients to raise prevention awareness.
Also in 2017, Moncler supported two researchers of the Umberto Veronesi Foundation: one from the "Tor Vergata" University of Rome, engaged in the development of a self-diagnosis test for breast cancer, and the other from the Humanitas Research Hospital in Rozzano (Italy) who is studying circulating tumor cells in the early diagnosis of lung cancer.
Moncler also continued to support the Foundation's commitment to paediatric oncology by contributing to the Gold for Kids project, which aims at: raising awareness of the delicate issue of paediatric and adolescent cancers, promoting research, and contributing to the development of innovative treatment protocols capable of delivering cutting edge therapies and the highest chance of recovery. In particular, Moncler continued to fund the five-year SAR-GEN 2016 protocol, dedicated to the treatment of bone and soft tissue sarcomas, which account for 10-15% of childhood cancers. In 2017, with the aim of promoting research into treatment as well as diagnosis, Moncler began funding a three-year study evaluating secondary leukaemia risk in cancer survivors. This study will analyse the DNA of children who survived cancer, in order to develop a genetic test to predict risk and for the early diagnosis of blood diseases resulting from cancer therapies.
amfAR is one of the world's leading non-profit organisations dedicated to ending the global AIDS epidemic through innovative research.
Since 1985, the organisation has supported AIDS research while also combating the epidemic through prevention, education, awareness campaigns, and the advocacy of AIDS-related public policy. Moncler has collaborated with amfAR since 2013 by supporting its Countdown to a Cure for AIDS research initiative, aimed at finding a broadly applicable cure for HIV by 2020.
At the 2017 Cannes Festival, amfAR held the 24th edition of its Cinema against AIDS benefit gala, which included a fashion show and the auction of garments from the most prestigious international fashion brands to raise funds for research. Moncler participated by auctioning garments from the Gamme Rouge collection and by sponsoring the gala's after-party.
In October in New York, Moncler also participated in the charity event Fabulous Fund Fair organised by amfAR.
Moncler is committed to contributing to the welfare of the communities in which it operates, not only by promoting individual projects, but also by endorsing, in more ways than one, organisations working in the social sphere with a focus on supporting young people and spreading a culture of respect for the environment.
One of the issues closest to the heart of Moncler is that which is related to young people and their future. For many years now, the Company has supported new generations in difficulty by ensuring access to medical treatment, adequate levels of education, and a clear growth path, and it does so by collaborating with associations and foundations such as: Francesca Rava – N.P.H. Italia Onlus, San Patrignano Recovery Community, De Marchi Foundation, Together To Go, Dynamo Camp, I Bambini delle Fate Onlus, Action Innocence, and Amici di Cometa Onlus.
Moncler also supports projects focusing on the protection and preservation of the environment, such as the Keep Karakorum Clean and Keep K2 Clean initiatives promoted by the Ev-K2-CNR Association to protect mountain areas. Furthermore, the Group financed a project to restore the landscape, environment, and rural buildings in the natural area of Mount Fontana Secca and Col de Spadaròt Quero Vas in Belluno (Italy). The project is promoted by the FAI (Fondo Ambiente Italiano - National Trust of Italy), of which Moncler is a supporting partner since 2015.
The Francesca Rava Foundation helps disadvantaged children in Italy and across the globe through child sponsorships, targeted projects, awareness campaigns on children's rights, and volunteer work. In Italy, the Foundation represents the international humanitarian organisation N.P.H. (Nuestros Pequeños Hermanos - Our little brothers and sisters), which has helped save orphaned and abandoned children since 1954 by welcoming them into its own orphanage homes and hospitals.
Moncler has stood behind the Foundation since 2010 by supporting the N.P.H. Saint Damien paediatric hospital in Haiti (which assists 80,000 children a year), through the purchase of oxygen generators that supply enough medical gas to cover hundreds of beds in the facility's general ward and intensive care unit, as well as the four operating rooms, and with cash donations to cover the costs of training in Italy and in situ of new paediatric surgeons and their salaries, thus increasing the level of service and care at the hospital.
Ev-K2-CNR is a private non-profit association that promotes collaborative development projects and scientific research focusing on fragile mountain ecosystems. The association collaborates with international organisations, among others, such as WWF (World Wildlife Fund), UNEP (United Nations Environment Programme), and WMO (World Meteorological Organization). Its activities are centred on the study and monitoring of climate change, the protection of biodiversity, and sustainable development in mountain areas.
For several years, the association has been promoting projects in the mountain areas of Hindu-Kush Karakoram Himalaya region, as well as in Nepal, Pakistan, Tibet, India, and Bhutan; it also has a laboratoryobservatory at 5,050 metres of altitude on the Nepalese side of Mount Everest.
United by the same passion and respect for the mountains, Ev-K2-CNR and Moncler have collaborated since 2014 in promoting environmental education programmes, such as Keep Karakorum Clean and Keep K2 Clean. These initiatives, also developed within the scope of the K2 expedition and in collaboration with local institutions, have led to waste clean-ups at base camps, which were restored to their natural conditions, and to the creation of a mountain rescue post. Furthermore, several environmental education activities were launched, with the support of the authorities of Central Karakorum National Park and of the province of Gilgit-Baltistan (Pakistan), to raise awareness among Pakistani operators of the importance of preserving parks and glaciers, with initiatives ranging from the implementation of waste sorting systems to the set-up of a waste recycling centre. Other environmental education campaigns were launched in schools across the region.
In 2017, Ev-K2-CNR, with Moncler's steadfast aid, launched the Baltoro Cleanup Campaign, a new initiative to support the environmental conservation of the Baltoro Glacier, one of the largest freshwater reserves in Gilgit-Baltistan. Over 5,000 kg of waste was collected in three months.
UNICEF, the United Nations Children's Fund, is present in 190 countries around the world and provides humanitarian aid to children and their mothers mainly in developing countries.
Millions of children around the world live in conditions of dire need, which become even desperate in winter, making survival a daily struggle.
In 2017, Moncler decided to team up with UNICEF and to help children living in extreme poverty in countries with the most challenging climatic and social conditions. Through the Warmly Moncler for Unicef project, about 11,500 children in Syria, Nepal and Mongolia received clothing and kits to tackle the winter and protect themselves from the cold.
Moncler is committed to helping populations affected by natural disasters.
In October 2016, some municipalities in central Italy were hit hard by an earthquake and Moncler promptly took action to deliver help. Through the Francesca Rava Foundation, more than 2,000 down jackets were donated to students and teachers from schools affected by the earthquake in the towns of Norcia, Cascia, and Arquata and the construction of the new elementary school and a multifunctional sports facility were funded in Cascia. The school was inaugurated in 2017 during a ceremony attended by local authorities, students, teachers and Moncler representatives. The event was attended by 12 employee volunteers of the Group who, together with some animators, entertained the students in a series of fun activities.
Finally, Moncler funded a project for the construction of a playground for the nursery school in Pieve Torina (Macerata), which will be built in 2018 in compliance with seismic and eco-sustainable principles. It will be designed following an educational concept focused on environmental issues, through research and the study of exclusive games in this field, created ad hoc by architects at the University of Camerino.
The Consolidated Non-Financial Statement 2017 of the Moncler Group (also "Non-Financial Statement" or "Statement") is drawn up in compliance with article 4 of Italian Legislative Decree 254/2016 (hereinafter also "Decree") and contains information on environmental, social, personnel, human rights, and anticorruption issues. This information aims to ensure adequate understanding of the activities carried out and their impact, as well as of the performance and results achieved by the Group.
The Statement is published annually, and is prepared 'in accordance' with the core option provided by the GRI-G4 Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI) – to date, the most widely used and recognised standard at international level for sustainability reporting. To facilitate the search for information, a GRI-G4 Content Index is provided from page 117-128.
The Non-Financial Statement follows the principle of materiality, an element provided for by the reference legislation that characterises the GRI-G4 Guidelines. The issues discussed in the Statement are those which, following a materiality analysis and assessment described on pages 37-38, were considered relevant as they reflect the social and environmental impacts of the Group's activities, or influence the decisions of its stakeholders.
The qualitative and quantitative data and information contained in the Consolidated Non-Financial Statement 2017 refer to the performance of the Moncler Group (also "the Group" or "Moncler") for the year ended 31 December 2017. As provided for by article 4 of Legislative Decree 254/2016, this Statement includes the data of the parent company (Moncler S.p.A.) and its subsidiaries consolidated on a line-by-line basis. Any limitations to the scope have been appropriately indicated in the document. In order to enable data comparability over time, figures were also provided (where available) for previous years.
The preparation of the Moncler Group Consolidated Non-Financial Statement 2017 was based on a structured process that provided for:
the approval of the Statement by the Board of Directors, called to approve the draft 2017 Financial Statements, after its examination by the Control, Risks, and Sustainability Committee
the issue of an assurance opinion on the Statement by the independent auditors KPMG following a limited assurance engagement
The identification of the contents and the reporting of the Consolidated Non-Financial Statement took into account the following principles:
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Italy | 800 | 30.7% | 69.3% | 741 | 29.7% | 70.3% | 669 | 30.5% | 69.5% |
| EMEA (excluding Italy) | 1,404 | 21.9% | 78.1% | 1,281 | 20.9% | 79.1% | 664 | 27.1% | 72.9% |
| Americas | 328 | 46.3% | 53.7% | 314 | 44.6% | 55.4% | 257 | 44.4% | 55.6% |
| Asia and Rest of the World | 966 | 34.1% | 65.9% | 880 | 33.1% | 66.9% | 834 | 33.0% | 67.0% |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Executives and senior executives | 55 | 56.4% | 43.6% | 50 | 56.0% | 44.0% | 41 | 65.9% | 34.1% |
| Managers | 203 | 46.3% | 53.7% | 184 | 48.4% | 51.6% | 240 | 42.5% | 57.5% |
| Professionals | 355 | 32.7% | 67.3% | 293 | 29.0% | 71.0% | 211 | 29.4% | 70.6% |
| White-collars | 2,026 | 34.4% | 65.6% | 1,865 | 32.3% | 67.7% | 1,633 | 32.6% | 67.4% |
| Workers | 859 | 11.2% | 88.8% | 824 | 14.0% | 86.0% | 299 | 16.4% | 83.6% |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| <30 | 1,199 | 37.0% | 63.0% | 926 | 35.7% | 64.3% | 867 | 36.8% | 63.2% |
| 31-40 | 1,209 | 28.6% | 71.4% | 1,241 | 29.2% | 70.8% | 898 | 29.8% | 70.2% |
| 41-50 | 731 | 22.0% | 78.0% | 700 | 21.0% | 79.0% | 472 | 27.3% | 72.7% |
| >50 | 359 | 23.1% | 76.9% | 349 | 22.6% | 77.4% | 187 | 30.5% | 69.5% |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | ||
| University degree or equivalent | 1,372 | 32.8% | 67.2% | 1,144 | 30.7% | 69.3% | 955 | 29.2% | 70.8% | |
| High school | 1,088 | 33.7% | 66.3% | 1,025 | 33.6% | 66.4% | 754 | 37.5% | 62.5% | |
| Middle and elementary school | 874 | 17.2% | 82.8% | 898 | 18.5% | 81.5% | 494 | 25.1% | 74.9% | |
| Not mapped | 164 | 40.9% | 59.1% | 149 | 38.9% | 61.1% | 221 | 39.4% | 60.6% | |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Up to 5 years | 3,060 | 29.4% | 70.6% | 2,908 | 28.5% | 71.5% | 2,101 | 32.4% | 67.6% |
| 6 to 10 years | 274 | 28.5% | 71.5% | 145 | 24.8% | 75.2% | 174 | 25.9% | 74.1% |
| 11 to 20 years | 164 | 33.5% | 66.5% | 160 | 33.1% | 66.9% | 148 | 32.4% | 67.6% |
| 21 to 30 years | - | - | - | 3 | - | 100.0% | 1 | - | 100.0% |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Permanent contract | 2,709 | 28.9% | 71.1% | 2,542 | 28.5% | 71.5% | 1,733 | 32.3% | 67.7% |
| Temporary contract | 789 | 31.7% | 68.3% | 674 | 28.8% | 71.2% | 691 | 30.8% | 69.2% |
| Total | 3,498 | 29.6% | 70.4% | 3,216 | 28.6% | 71.4% | 2,424 | 31.9% | 68.1% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Full-time | 2,502 | 29.1% | 70.9% | 2,371 | 28.5% | 71.5% | 1,595 | 32.3% | 67.7% |
| Part-time | 207 | 27.1% | 72.9% | 171 | 29.2% | 70.8% | 138 | 32.6% | 67.4% |
| Total | 2,709 | 28.9% | 71.1% | 2,542 | 28.5% | 71.5% | 1,733 | 32.3% | 67.7% |
| 2017 | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| New hires | 1,581 | 487 | 1,094 | 1,259 | 425 | 834 | 1,591 | 432 | 1,159 |
| Departing employees | 1,299 | 373 | 926 | 1,034 | 340 | 694 | 891 | 254 | 637 |
| 2017 | 2016 | 2015 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total <30 31-40 41-50 >50 | Total | <30 | 31-40 41-50 | >50 | Total <30 31-40 41-50 >50 | ||||||||||
| New hires | 1,581 | 914 | 377 | 200 | 90 | 1,259 | 590 | 465 | 130 | 74 | 1,591 | 685 | 556 | 250 | 100 |
| Departing employees | 1,299 | 689 | 335 | 181 | 94 | 1,034 | 500 | 322 | 129 | 83 | 891 | 432 | 297 | 110 | 52 |
| 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Total | Italy | EMEA (excl. Italy) |
Americas | Asia and Rest of the World |
|||
| New hires | 1,581 | 303 | 647 | 186 | 445 | ||
| Departing employees | 1,299 | 248 | 537 | 181 | 333 |
| 2017 | 2016 | 2015 | ||||
|---|---|---|---|---|---|---|
| No. | % | No. | % | No. | % | |
| Italy | 800 | 22.9 | 741 | 23.0 | 669 | 27.6 |
| Romania | 896 | 25.6 | 862 | 26.8 | 287 | 11.8 |
| Japan | 410 | 11.7 | 334 | 10.4 | 327 | 13.5 |
| United States | 281 | 8.0 | 278 | 8.6 | 217 | 9.0 |
| China | 270 | 7.7 | 258 | 8.0 | 263 | 10.8 |
| France | 147 | 4.2 | 136 | 4.2 | 127 | 5.2 |
| Korea | 130 | 3.7 | 127 | 3.9 | 97 | 4.0 |
| United Kingdom | 101 | 2.9 | 85 | 2.6 | 62 | 2.6 |
| Hong Kong | 96 | 2.7 | 108 | 3.4 | 101 | 4.2 |
| Germany | 58 | 1.7 | 47 | 1.5 | 45 | 1.9 |
| Switzerland | 49 | 1.4 | 45 | 1.4 | 39 | 1.6 |
| Canada | 40 | 1.1 | 28 | 0.9 | 32 | 1.3 |
| Austria | 36 | 1.0 | 28 | 0.9 | 29 | 1.2 |
| Taiwan | 25 | 0.7 | 24 | 0.7 | 25 | 1.0 |
| Other countries | 159 | 4.5 | 115 | 3.6 | 104 | 4.3 |
| Total | 3,498 | 100.0 | 3,216 | 100.0 | 2,424 | 100.0 |
(1) Since most of the workers are women (89%) and are located in Romania, while most of the male workers are located in Italy, the comparison between men's and women's salaries would be misleading. For this reason, the analysis was conducted only within the Romanian perimeter.
| 2017(2) | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Italy | 4 | 3 | 1 | 2 | 1 | 1 | 1 | 1 | - |
| EMEA (including Italy) | 14 | 8 | 6 | 5 | 1 | 4 | 2 | - | 2 |
| Americas | 1 | 1 | - | 7 | 3 | 4 | - | - | - |
| Asia and Rest of the World | - | - | - | 4 | 1 | 3 | - | - | - |
| In the workplace | 19 | 12 | 7 | 18 | 6 | 12 | 3 | 1 | 2 |
| Italy | 9 | 1 | 8 | 5 | 1 | 4 | 8 | 1 | 7 |
| EMEA (including Italy) | 2 | 1 | 1 | 3 | 2 | 1 | 3 | - | 3 |
| Americas | - | - | - | - | - | - | - | - | - |
| Asia and Rest of the World | - | - | - | 1 | 1 | - | - | - | - |
| Commuting to/from work | 11 | 2 | 9 | 9 | 4 | 5 | 11 | 1 | 10 |
| Total | 30 | 14 | 16 | 27 | 10 | 17 | 14 | 2 | 12 |
| 2017(2) | 2016 | 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | ||
| Accidents (No.) | 30 | 14 | 16 | 27 | 10 | 17 | 14 | 2 | 12 | |
| in the workplace | 19 | 12 | 7 | 18 | 6 | 12 | 3 | 1 | 2 | |
| commuting to/from work | 11 | 2 | 9 | 9 | 4 | 5 | 11 | 1 | 10 | |
| Days lost due to injuries | 890 | 205 | 685 | 377 | 190 | 187 | 353 | 34 | 319 | |
| in the workplace | 413 | 176 | 237 | 121 | 73 | 48 | 23 | 7 | 16 | |
| commuting to/from work | 477 | 29 | 448 | 256 | 117 | 139 | 330 | 27 | 303 |
| 2017(2) | 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Men | Women | Total | Men | Women | Total | Men | Women | |
| Incidence rate(3) | 8.58 | 13.54 | 6.49 | 8.40 | 10.88 | 7.40 | 5.78 | 2.59 | 7.27 |
| Severity rate(4) | 0.16 | 0.12 | 0.17 | 0.10 | 0.15 | 0.08 | 0.10 | 0.03 | 0.15 |
| Frequency rate(5) | 5.35 | 8.60 | 4.02 | 7.18 | 7.65 | 6.93 | 4.16 | 1.59 | 5.69 |
(2) Data refers to a scope of assessment covering 100% of the Group's global workforce and does not therefore allow a comparison with previous years.
(3) Incidence rate: (number of workplace injuries/total employees) x 1,000.
(4) Severity rate: (number of days lost due to workplace injuries/total hours worked) x 1,000.
(5) Frequency rate: (number of injuries/total hours worked) x 1,000,000.
Moncler grants parental leaves to all its employees in accordance with applicable laws and local regulations. In addition, in December 2017, a second-level company agreement was signed with trade union representatives in Italy granting all employees of the Group's Italian companies, who will become fathers as from 1 January 2018, a total of five days of paternity leave, i.e., one more than that established by law or the national collective labour agreement.
In 2017, 115 Group employees, accounting for 4% of the eligible female workforce and 1% of the eligible male workforce, took some form of parental leave. Around 72% of them returned to work after the leave period. Of those who returned to work in 2016, 45% were still working for the Company 12 months later.
The Group also helps both men and women balance their professional and private lives by offering flexible working hours that can be tailored to personal needs.
The Moncler Group strives towards the highest principles of transparency, integrity and loyalty in its operations, complying with applicable laws in force in the countries in which it operates and focusing constantly on creating a relationship of trust with its clients.
Confirmation of this is reflected in the fact that in 2017, no Final Decision was handed down against the Moncler Group in any of the following areas:
There was one case in the above areas regarding unfair competition, still pending in appeal after an initial ruling was handed down in favour of the Group. Overall, litigation against the Group, in terms of type of issue and number of cases, is not particularly significant.
With regard to normal tax audits, reference should be made to the section "Significant events occurred during the Financial Year 2017" in the Board of Directors' Report contained in the Annual Report 2017.
The following index is provided to facilitate the search for content related to specific GRI-G4 indicators. The index has two parts.
The first refers to the indicators reported 'in accordance' with the GRI core option on the basis of the 2017 materiality analysis. See also page 118.
The second part refers to other GRI-G4 indicators that complete Moncler's performance profile. See also page 122. A table linking the material issues and the GRI index is also provided.
The independent auditors KPMG S.p.A. have carried out a limited assurance engagement on Moncler's Consolidated Non-Financial Statement 2017, providing its overall conclusions thereafter. As regards the scope of activities, please refer to the Statement on the Consolidated Non-Financial Statement released by the independent auditors, on pages 113-116.
LEGEND
NFS = Consolidated Non-Financial Statement 2017
AR = Annual Report 2017
CE = Code of Ethics
PRP = Procedure Governing Transactions with Related Parties
CGR = Corporate Governance Report 2017
PAGE NUMBER (OR DIRECT LINK)
| G4 -1 | NFS page 4 |
|---|---|
| G4-3 | NFS page 106 |
|---|---|
| G4-4 | NFS pages 13, 83-84 |
| G4-5 | NFS page 133 |
| G4-6 | NFS pages 13 -15, 52, 73, 108 |
| G4-7 | NFS pages 25-27, 133 |
| G4-8 | NFS pages 13-15 |
| G4-9 | NFS pages 13-16, 18-20, 21-22, 52, 73 |
| G4-10 | NFS pages 52, 54-55, 108-110 |
| G4-11 | NFS page 69 |
| G4-12 | NFS pages 72-73 |
| G4-13 | No significant changes reported. AR (Paragraphs: Consolidated Cash Flow Statement; Notes to the Consolidated Financial Statements - The Group and its Main Activities) |
| G4-14 | NFS pages 31-35, 83, 94 |
| G4-15 | NFS pages 25, 58 |
| G4-16 | NFS pages 41-42 |
| G4-17 | NFS page 106 |
|---|---|
| G4-18 | NFS pages 106-107 |
| G4-19 | NFS page 37 |
| G4-20 | NFS page 129 |
| G4-21 | NFS page 129 |
| G4-22 | NFS page 22 |
| G4-23 | No significant changes reported |
| G4-24 | NFS pages 39-40 |
|---|---|
| G4-25 | NFS page 38 |
| G4-26 | NFS pages 39-40 |
| G4-27 | NFS pages 38, 62-63 |
| G4-28 | NFS page 106 |
|---|---|
| G4-29 | NFS page 106 |
| G4-30 | NFS page 106 |
| G4-31 | NFS page 133 |
| G4-32 | NFS pages 106, 113-116, 117- 128 |
| G4-33 | NFS pages 106, 113-116 |
| G4 -34 | NFS pages 25-27, 36 |
|---|---|
| G4 -56 | NFS pages 8-10, 25, 27-29 |
|---|---|
| CATEGORY: ECONOMIC | ||
|---|---|---|
| G4 -DMA | NFS pages 18, 100-101 |
|---|---|
| G4 -EC1 | NFS pages 18, 21-22, 100 |
| G4 -DMA | NFS pages 72-75, 78 |
|---|---|
| G4 -EC9 | NFS page 73 |
| G4 -DMA | NFS pages 94-95 |
|---|---|
| G4 -EN1 | NFS page 95 |
| G4 -EN2 | NFS page 95 |
|---|---|
| G4 -DMA | NFS pages 93-94 |
|---|---|
| G4 -EN6 | NFS pages 93-94 |
| G4 -DMA | NFS pages 47-48, 74-75 |
|---|---|
| G4 -EN33 | NFS pages 47-48, 74-75 |
| G4 -DMA | NFS pages 51, 52, 55, 60-61 |
|---|---|
| G4 -LA1 | NFS pages 55, 109-110 |
| G4 -LA2 | NFS page 60 |
| G4 -DMA | NFS pages 57-58, 61-62 |
|---|---|
| G4 -LA11 | NFS pages 61-62 |
| G4 -DMA | NFS pages 64-65 |
|---|---|
| G4 -LA12 | NFS pages 27, 52-54, 64-65, 108-111 |
| G4 -DMA | NFS pages 58-59, 64-65 |
|---|---|
| G4 -LA13 | NFS page 110 |
| G4 -DMA | NFS pages 47-48, 74-75 |
|---|---|
| G4 -LA15 | NFS pages 47-48, 74-75 |
| G4 -DMA | NFS pages 47-48, 74-75 |
|---|---|
| G4 -HR11 | NFS pages 47-48, 74-75 |
| G4 -DMA | NFS page 102 |
|---|---|
| G4 -SO1 | NFS page 102 |
| G4 -DMA | NFS pages 83-84, 112 |
|---|---|
| G4 -PR1 | NFS pages 83-84 |
| G4 -PR2 | NFS page 112 |
| G4 -DMA | NFS pages 81-82 |
|---|---|
| G4 -PR5 | NFS page 82 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -PR7 | NFS page 112 |
| PAGE NUMBER |
|---|
| (OR DIRECT LINK) |
| G4-2 | NFS pages 31-35, 43-49 |
|---|---|
| G4-35 | NFS page 36 |
|---|---|
| G4-36 | NFS page 36 |
| G4-37 | NFS page 36 |
| G4-38 | NFS pages 25-27, 36; CGR (Paragraphs: Board of Directors; Composition and Functioning of the Board of Statutory Auditors) |
| G4-39 | NFS pages 25-27; CGR (Paragraphs: Chairman of the Board of Directors; Table 2: Structure of the Board of Directors and Committees) |
| G4-40 | CGR (Paragraph: Board of Directors - Appointment and Replacement of Directors) |
| G4-41 | CE (Paragraphs: Contributions and Sponsorships; Conflicts of Interest); PRP |
| G4-42 | NFS page 36 |
| G4-43 | NFS pages 32, 36 |
| G4-45 | NFS pages 32, 43-44 |
| G4-46 | NFS page 32 |
| G4-47 | NFS page 32 |
| G4-48 | NFS pages 37, 106-107 |
| G4-49 | NFS pages 28-29 |
| G4-53 | NFS pages 58-60 |
| G4-57 | NFS pages 28-29, 45; CE (Paragraph: Reporting Breaches of the Code of Ethics) |
|---|---|
| G4-58 | NFS pages 27-29, 45 |
| G4 -EC2 | NFS pages 91-94. Partial disclosure of indicator. The opportunity of expanding the scope of analysis will be considered in the future. |
|---|---|
| G4 -EC3 | NFS page 60; RFA (Paragraph: Employee Benefits) |
| G4 -EC4 | NFS page 42 |
| G4 -DMA | NFS pages 54, 58-60 |
|---|---|
| G4 -EC5 | NFS pages 59, 110 |
| G4 -EC6 | NFS page 54 |
| G4 -DMA | NFS pages 99-104 |
|---|---|
| G4 -EC7 | NFS pages 100-104 |
| G4 -DMA | NFS pages 91-94 |
|---|---|
| G4 -EN3 | NFS page 92 |
| G4 -EN5 | NFS page 92 |
| G4 -EN7 | NFS pages 92-94 |
| G4 -EN9 | The Group's main source of water supply is represented by water mains. |
|---|---|
| G4 -EN10 | Water consumption mainly relates to sanitary plumbing. In the reporting period water consumption was approximately 189 thousand cubic metres. The water used is neither recycled nor reused. |
| G4 -EN11 | Moncler does not own or manage facilities or operating sites that are located |
|---|---|
| in, or adjacent to, protected areas or areas of high biodiversity value outside | |
| protected areas. | |
| Accordingly, indicators G4-EN12, EN13, EN14, and EN26 are not applicable. |
| G4 -DMA | NFS pages 91-94 |
|---|---|
| G4 -EN15 | NFS page 92 |
| G4 -EN16 | NFS page 92 |
| G4 -EN17 | NFS page 97 |
| G4 -EN18 | NFS page 92 |
| G4 -EN19 | NFS pages 91-94 |
| G4 -EN20 | During the reporting period, gas leaks of approximately 53 kg of hydrochlorofluorocarbons (HCFCs) were recorded in Italy, mainly due to the rupture of a battery in the air conditioner at the Piacenza logistics hub, and to leaks from air conditioning units at the corporate offices in Solari (Milan) and Trebaseleghe (Padua) |
| G4 -EN21 | Given Moncler's business model, there are no known significant emissions at the moment. |
| G4 -DMA | NFS page 96 |
|---|---|
| G4 -EN22 | Water discharges are comparable to those of residential dwellings and are |
| therefore drained into the sewage system. | |
| G4 -EN23 | NFS page 96 |
| G4 -EN24 | During the reporting period, there were no significant spills of pollutants. |
| G4 -EN25 | Moncler did not transport, import, export or treat any kind of waste deemed hazardous under the terms of the Basel Convention. |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -EN29 | During the reporting period, there were no fines or monetary sanctions for non-compliance with applicable environmental laws and/or regulations. |
| G4 -DMA | NFS pages 91-94 |
|---|---|
| G4 -EN30 | NFS pages 92-94 |
| G4 -DMA | NFS pages 91-94 |
|---|---|
| G4 -EN31 | NFS page 93 |
| G4 -DMA | NFS pages 28-29 |
|---|---|
| G4 -EN34 | During the reporting period, there were no grievances filed related to environmental impacts. |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -LA3 | NFS page 112 |
| G4 -DMA | NFS page 69 |
|---|---|
| G4 -LA4 | NFS page 69 |
| G4 -DMA | NFS pages 66-68 |
|---|---|
| G4 -LA5 | NFS page 67. There are no formal committees in this area. |
| G4 -LA7 | NFS page 68 |
| G4 -DMA | NFS pages 57-58 |
|---|---|
| G4 -LA9 | NFS page 57 |
| G4 -DMA | NFS pages 27-29 |
|---|---|
| G4 -LA16 | During the reporting period, 2 grievances were filed related to labour practices, both resolved through formal grievance mechanisms. |
| G4 -DMA | NFS pages 57-58, 74-77 |
|---|---|
| G4 -HR1 | NFS pages 74-77 |
| G4 -HR2 | NFS pages 57-58 |
| G4 -DMA | NFS page 64 |
|---|---|
| G4 -HR3 | NFS pages 28-29, 64 |
| G4 -DMA | NFS pages 69, 74-75 |
|---|---|
| G4 -HR4 | NFS pages 48, 74-75 |
| G4 -DMA | NFS pages 74-75 |
|---|---|
| G4 -HR5 | NFS pages 48, 74-75 |
| G4 -DMA | NFS pages 74-75 |
|---|---|
| G4 -HR6 | NFS pages 48, 74-75 |
| G4 -HR8 | Considering the geographic areas in which it operates, Moncler believes |
|---|---|
| there is no risk of violating the rights of indigenous populations. |
| G4 -DMA | NFS pages 74-75 |
|---|---|
| G4 -HR9 | NFS pages 47-48, 74-77 |
| G4 -DMA | NFS pages 27-29 |
|---|---|
| G4 -HR12 | NFS pages 27-29, 33 |
| G4 -DMA | NFS pages 100-104 |
|---|---|
| G4 -SO2 | Considering Moncler's activities to date, no operations are deemed to have |
| a significant actual or potential negative impact on local communities. |
| G4 -DMA | NFS pages 27-30 |
|---|---|
| G4 -SO3 | NFS page 30 |
| G4 -SO4 | NFS page 30 |
| G4 -SO5 | During the reporting period, there were no instances of corruption. |
| G4 -DMA | NFS page 42 |
|---|---|
| G4 -SO6 | NFS page 42 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -SO7 | NFS page 112 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -SO8 | NFS page 112 |
| G4 -DMA | NFS pages 48, 75 |
|---|---|
| G4 -SO10 | NFS pages 48, 75 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -SO11 | NFS page 112 |
| G4 -DMA | NFS pages 87, 112 |
|---|---|
| G4 -PR3 | NFS page 87 |
| G4 -PR4 | NFS page 112 |
| G4 -DMA | NFS pages 76-77, 83-84 |
|---|---|
| G4 -PR6 | NFS pages 76-77, 83-84 |
| G4 -PR7 | NFS page 112 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -PR8 | NFS page 112 |
| G4 -DMA | NFS page 112 |
|---|---|
| G4 -PR9 | NFS page 112 |
| MATERIAL | LINK TO ASPECTS | INTERNAL | EXTERNAL |
|---|---|---|---|
| ISSUE | OF THE GRI-G4 | IMPACTS | IMPACTS |
| Brand reputation | (*) | Clients | |
| Product quality and safety | Customer health and safety (G4-PR1; G4- | Clients | |
| PR2) | Suppliers | ||
| Responsible sourcing | Supplier assessment for labour practices | Clients | |
| (G4-LA15) | Suppliers | ||
| Supplier assessment for human rights (G4- HR11) |
|||
| Client relations and client satisfaction |
Product and service labelling (G4-PR5) | Internal stakeholders | Clients |
| Innovative solutions | Internal stakeholders | Clients | |
| Environmet | |||
| Suppliers | |||
| Performance assessment and career development |
Training and education (G4-LA11) | Internal stakeholders | |
| Fostering a culture of | (*) | Internal stakeholders | Clients |
| sustainability | Environment | ||
| Suppliers | |||
| Community | |||
| Animal welfare | Supplier assessment for labour practices (G4-LA15) |
Clients | |
| Suppliers | |||
| Eco-efficiency | Energy (G4-EN6) | Environment | |
| Materials (G4-EN2) | |||
| Employer branding | Employment (G4-LA1) | Internal stakeholders | |
| Employee welfare | Employment (G4-LA2) | Internal stakeholders | |
| Support for local communities | Economic performance (G4-EC1) | Community | |
| Local communities (G4-SO1) | |||
| Employee engagement | (*) | ||
| Equal opportunities | Diversity and equal opportunity (G4-LA12) | Internal stakeholders | |
| Equal remuneration for women and men (G4-LA13) |
|||
| Environmentally-friendly | Materials (G4-EN1, G4-EN2) | Environment | |
| packaging | |||
| Sustainable store format | Energy (G4-EN6) | Environment |
(*) With regard to this area (not directly connected to an aspect under the GRI-G4 Guidelines), in the document Moncler reports the management approach adopted and the associated indicators.
Systematic and documented assessment (by an independent body) to verify compliance with the requirements of a given law/standard of reference.
Directly managed mono-brand retail space located on the premises of a department store.
General store, large or medium-sized, divided internally into specialist departments.
Directly Operated Stores, including Free Standing Stores, Travel Retail Stores, Concessions, and Outlets.
Voluntary environmental management tool developed by the European Commission for companies and other organisations to evaluate their environmental performance, and to provide the public and other interested parties with information on their environmental management.
Europe, Middle East, and Africa.
Air polluting emissions originating from combustion processes involving equipment controlled or owned by the organisation.
Air polluting emissions originating from combustion processes external to the organisation, over which the latter has no control.
Third-party supplier carrying out the 'cut-make-trim' phase (façon) of production according to the so-called industrialised method.
Mono-brand retail store that, by size and/or location, conveys the philosophy and image of the Brand.
Retail store located directly on a street, i.e., not in a mall or shopping centre.
Voluntary standard developed by the International Organization for Standardization (ISO), defining the requirements of environmental management systems.
Measurable value that monitors the effectiveness of a process.
Voluntary standard published by the British Standards Institution, defining the requirements of occupational health and safety management systems.
Retail store that sells products and collections from previous years and seasons at discount prices.
Retail store that exclusively sells clothing, accessories, and products of a specific brand.
Retail store that sells different brands of clothing, accessories, and products.
Distribution channel for the sale of products or goods managed directly by the Group through Directly Operated Stores (DOS) or its own e-commerce website (www.moncler.com).
Mono-brand wholesale space located on the premises of a department store.
Space used to display and sell an apparel company's products to wholesale clients.
Financial operator who integrates standard financials with environmental, social, and governance considerations.
Person or subject with a legitimate interest in the activities of an organisation, and who affects or is affected by the organisation's decisions.
Point of sale located in places with heavy traffic of potential clients, such as airports and train stations.
Distribution channel for the sale of products or goods to distributors (industrial, commercial, institutional, and other professional entities), through which the Group sells its products. The channel consists of both mono-brand and multi-brand stores.
MONCLER S.P.A.
REGISTERED OFFICE
Via Enrico Stendhal, 47 20144 Milan – Italy
Phone +39 02 42203500
Via Venezia, 1
35010 Trebaseleghe (Padua) – Italy
Phone +39 049 93 23 111
[email protected] SUSTAINABILITY [email protected] PRESS OFFICE [email protected]
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