The basis of our environmental efforts is to ensure that PUMA and its suppliers are in full environmental compliance and any impact on the environment is optimized.

We conducted 19 energy efficiency audits last year at our own entities, following up on a first audit cycle in 2015. These audits, which are compulsory in the European Union, help us identify energy saving opportunities at our offices, stores and warehouses, which we can then roll out on a global basis.

As far as our suppliers are concerned, our PUMA compliance audits (as described in the Social Compliance section of this report) contain a dedicated section on environmental and chemical compliance. During each audit, we check, for example, environmental permits, waste management and effluent treatment plants.

In addition, we continued to ask all of our core suppliers to complete the Environmental Facilities Module of the Sustainable Apparel Coalition. 127 of those assessments were externally verified in 2019, which equates to an onsite environmental audit. This figure is complemented by audits which our suppliers undergo frequently to obtain environmental certifications such as from bluesign®, OEKO-TEX, GOTS, GRS or the Leather Working Group.

Interim Target:
Relative reduction of Scope 1,2 and 3 CO2 emissions by 3% per year

Examples for the 10FOR20 Action Plan:

  • Work with industry peers on climate action
  • Extend large scale climate change projects in supply chain

KPIs:

  • Direct CO2 emissions from own entities (Scope 1)
  • Indirect CO2 emissions from own entities (Scope 2)
  • Indirect CO2 emissions from manufacturing, business travel and transport of goods (Scope 3)

During the UN Climate Conference in Paris 2015, PUMA agreed to set a science-based CO2 emissions target. After two attempts in 2017 and 2018, and the formation of the Fashion Industry Charter on Climate Action in 2018, we finally agreed our science based CO2 emissions target with the Science Based Target Coalition in 2019 and published the target in June.

The year 2019 also saw the formation of 7 working groups as part of the Fashion Charter on Climate Action. PUMA is active in 5 of those working group and chairs the Steering Committee of the Charter. PUMA also co-chairs the working group on Sector Decarbonization.

https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action

About the Fashion Industry Charter for Climate Action

On a global stage, PUMA has played an instrumental role in creating the UN-convened Fashion Industry Charter for Climate Action and in mobilizing its suppliers, peers and partners in the industry and beyond to join his industry-wide collaboration platform on climate. As a founding signatory, PUMA continues to play a key role by chairing the Steering Committee of the Fashion Charter and is actively engaged in supporting working groups focused on decarbonization, manufacturing/energy and financial tools. We look forward to working with PUMA going forward as it aligns its climate targets with science (1.5 degree temperature goal) and together with other signatories of the charter continue to push for more ambitious, rapid, robust and credible processes to get there.

Lindita Xhaveri-Salihu
Sectors Engagement Lead UN Climate Change, Global Climate Action

We combined our Science Based Target (SBT) agreement with an increased effort to support the use of renewable electricity by purchasing Renewable Energy Attribute Certificates (RECs) for those countries where PUMA has a major presence and renewable electricity cannot be purchased directly. We purchased RECs worth 50% of PUMA’s emissions from electricity for 2018 retrospectively and increased that figure to 75% in 2019.

In this way, we managed to lower our combined Scope 1 and 2 Emissions by 38% compared to 2018 and 63% compared to 2017. Taking these RECs into account, we hit our Science Based Emissions Target of 35% reduction for Scope 1 and 2 Emissions in 2019, one year ahead of schedule.

G.05 Agreed Emission Targets (Scope 1&2) (t CO2e)

* Science Based reduction Target (SBT)
** Renewable Energy Attribute Certificates

In an attempt to balance our increasing Scope 3 emissions, we expanded the reach of our energy efficiency programs to China and Taiwan by joining the Clean by Design Program of the Apparel Impact Institute (https://apparelimpact.org/).

As part of our commitment to All, four of our fabric producers with wet-processing units have been entered into the Clean by Design program in a first phase (two more will be engaged in the first batch 2020), and we reserved the right to expand coverage further, should the program prove successful.

Another effort to reduce our Tier 1 carbon footprint further was made by joining WWF’s Low Carbon Manufacturing Program. We recruited our largest garment factory to participate in the starter phase, identifying energy saving opportunities and providing online carbon accounting training.

Our program in Vietnam, which is run in partnership with IFC, has shown positive results, with 5500 tons of CO2 saved from energy efficiency measures. Our vendors also committed to install 2 megawatt hours of solar panels to create electricity.

Solar Installation at PUMA vendor in Vietnam

The reduction of our Scope 3 emissions at factory level is complemented by purchasing more sustainable – and therefore also less carbon-intensive – raw materials. For example, after hitting our 50% bluesign® certified polyester target in 2018 already, we set new, more ambitious targets. In 2019 we achieved use of over 90% bluesign® or OEKO-TEX certified polyester and by 2025, we aim for 75% recycled polyester usage.

T.06 Scope 1 and Scope 2 CO2e Emissions from PUMA
CO2e-Emissions 1 - 8
(absolute figues)
2019 2018 2017 2016 2015 % Change
2019/18
% Change
2019/2015
Scope 1 – Direct CO2e-Emissions Fossile Fuels (T) 6,326 6,918 7,678 6,854 7,296 -8.6 -13.3
Car Fleet 3,618 4,073 4,134 3,746 4,087 -11.2 -11.5
Heating 2,708 2,845 3,545 3,107 3,209 -4.8 -15.6
Scope 2 - Indirect CO2e Emissions Electricity & Steam [T] 40,986 43,366 40,029 37,300 35,591 -5.5 15.2
Scope 2 - Indirect CO2e Emissions Electricity & Steam [T] incl. RECs 11,533 22,128 40,029 37,300 35,591 -47.9 -67.6
Electricity (excl. RECs) 39,282 42,145 38,914 36,046 34,445 -6.8 14.0
Electricity (incl. RECs) 9,828 20,907 38,914 36,046 34,445 -53.0 -71.5
Steam 1,705 1,221 1,115 1,254 1,146 39.6 48.8
Subtotal Scope 1-2 47,312 50,284 47,707 44,153 42,887 -5.9 10.3
Subtotal Scope 1-2 incl. RECs 17,858 29,046 47,707 44,153 42,887 -38.5 -58.4
SCOPE 1-2 CO2e EMISSIONS RELATIVE TO SALES (in tons CO2e per € million sales per year) 8.6 10.8 11.5 12.2 12.7 -20.5 -32.1
SCOPE 1-2 CO2e EMISSIONS RELATIVE TO SALES (in tons CO2e per € million sales per year) (incl. RECs) 3.2 6.2 11.5 12.2 12.7 -48.1 -74.4

Chemicals (10FOR20 Target No. 5)

Target Description and Examples of the 10FOR20 Action Plan:
Zero Discharge of Hazardous Chemicals from our Supply Chain by 2020.

Relates to Sustainable United Nations Development Goals 3,6

KPIs:

  • Number and pass rate of RSL tests
  • Percentage of Products without PFC
  • VOC Index for Shoes

While the effects of potentially hazardous chemicals on human health have yet to be completely assessed, PUMA takes precautionary measures to prevent potential harm to human health and the environment from its products and operations.

All materials used in PUMA products are subject to our Restricted Substance List (RSL) testing program to ensure compliance with global chemicals regulations.

For testing purposes, we rely on the Product RSL developed by the AFIRM Group as well as the Manufacturing RSL developed by ZDHC rather than own PUMA testing standards.

Since 2015, we have increased the amount of RSL tests by 183% to 6605 while the failure rate decreased from 7.7% to 1.1%. When materials fail an RSL test, they cannot be used for PUMA products until the failure is corrected and they successfully pass the test. In this way we mitigated the risk of product level RLS failures, of which there were none in 2019.

T.08 RSL Test Statistics 2015-2019
Product Division 2019 2018 2017 2016 2015 Variation
2018/2019 (%)
Variation
2015/2019 (%)
# of Test Reports Compliance Rate (%) # of Test Reports Compliance Rate (%) # of Test Reports Compliance Rate (%) # of Test Reports Compliance Rate (%) # of Test Reports Compliance Rate (%) # of Test Reports Compliance Rate # of Test Reports Compliance Rate
Footwear 4668 99.2 3512 98.4 2707 97.9 1781 96 1150 92.1 32.9 0.8 305.9 7.1
Apparel 1239 99.1 988 98 925 99.1 500 98 480 93.1 25.4 1.1 158.1 6.0
Accessories 639 96.2 764 97.1 753 96 677 94 624 92.0 -16.4 -0.9 2.4 4.3
Others 59 100.0 54 100 44 95.5 78 94 82 93.9 9.3 0.0 -28.0 6.1
Total 6605 98.9 5318 98.1 4429 97.8 3028 96 2336 92.3 24.2 0.8 182.7 6.6

At manufacturing level, we phased out the intentional use of 11 priority chemical groups classified as particularly hazardous as part of our Greenpeace Detox commitment. This phase-out was supported by the increasing use of bluesign® and OEKO-TEX certified materials as well as substituting PFC-based water-repellent finishes. We also trained our supplier base, for example during supplier round table meetings. While most of those chemical groups were never intentionally used in the first place, poly-fluorinated chemicals (PFCs) were used until 2017 for water-repellent finishes on apparel and footwear products.

The phase-out of these substances is illustrated by the results of wastewater tests by our core wet-processing suppliers. These tests show compliance levels of over 94% for each of the Manufacturing Restricted Substance List (MRSL) parameters listed in the ZDHC MRSL. Most parameters show compliance rates of 100% or close to 100%, with the exception of harmful AZO Dyes (94.2% compliance) and PFCs (95% compliance). Those two parameters were already phased out by PUMA, but due to shared production with other brands and retails at the same suppliers could still be found in a small number of samples.

With the help of our footwear suppliers, we also managed to further reduce the amount of solvents or volatile organic compounds (VOCs) per pair of shoes to 15.6 g/pair in line with our 2020 target projection. We achieved this reduction by frequent VOC reduction meetings with our footwear suppliers and chemical companies. In those meetings we shared best practices from leading suppliers and new technological developments.

G.07 VOC Index development over time

* 2019 figure based on core suppliers, in alignment with general reporting scope.

Materials (10FOR20 Target No 7)

Target Description:
Use sustainable material alternatives for PUMA’s key materials: cotton, polyester, leather, polyurethane and cardboard.

Relates to United Nations Sustainable Development Goals 12,15

Examples for the 10FOR20 Action Plan:

  • Increase bluesign® certified polyester usage to 50% by 2020 (updated target 90%)
  • Increase Better Cotton Initiative cotton to 50% by 2020 (updated target 90%)
  • Increase the usage of FSC certified and/or recycled paper and cardboard to 90% by 2020
  • Keep the percentage of leather from LWG medal rated tanneries above 90%
  • Explore the use of water-based polyurethane

KPIs:

  • Percentage figures for each material

The PUMA Environmental Profit and Loss Account attributes more than 50% of PUMA’s environmental impact to material and raw material production. Therefore we have placed a high priority on the large-scale use of more sustainable raw materials. As part of our 10FOR20 strategy, we set targets for more sustainable raw materials used in our apparel, such as cotton and polyester, but also for footwear leather, polyurethane and cardboard.

With the exception of polyurethane (PU), we had already achieved our targets by the end of 2018. We therefore increased our level of ambition for certified cotton and polyester from 50% to 90%, and added OEKO-TEX to the list of applicable certification standards for polyester. Our material sourcing teams instructed our material vendors to purchase more sustainable cotton and certified polyester where feasible. This effort was supported by increased demand from our business units for more sustainable materials at product level. The results are 82% cotton from the Better Cotton Initiative and organic cotton, and 98% certified polyester in our apparel ranges and exclusive use of certified polyester in our accessories division.

Regarding more sustainable PU, we piloted water-based PU in 2018 and so far have sold approximately 300,000 pairs of sneakers using water-based PU. While we found some technical limitations in the use of water-based PU, the significant price increase compared to conventional PU has so far prevented us from further increasing the use of this material. We hope that together with our industry peers we can scale up the production volume of water-based PU and eliminate any technical issues as well as bring the price down to a competitive level.

PUMA X FIRST MILE collection uses sustainable
yarn made from recycled plastic.

Apart from our original targets on BCI cotton and certified polyester, we also started using recycled polyester and organic cotton for some of our sustainability focused collections.

T.10 E-KPIs PUMA and supply chain1-6
  2019 2018 2017 2016 2015 % Change
2019/18
% Change
2019/2015
Energy
Excl. RECs:
Electricity consumption (MWh) 61,499 66,512 64,119 63,339 59,888 -7.5 2.7
Electricity consumption from renewable tariff (MWh) 11,547 11,695 11,611 12,049 11,360 -1.3 1.7
Percentage renewable electricity consumption 16% 15% 18% 19% 19%
Incl. RECs:
Electricity consumption (MWh) 61,499 66,512 64,119 63,339 59,888 -7.5 2.7
Electricity consumption from renewable tariff (MWh) 48,816 36,746 11,611 12,049 11,360 32.8 329.7
Percentage renewable electricity consumption 79% 55% 18% 19% 19%
Energy from non-renewable fuels (oil, natural gas, etc.) (MWh) 10,975 11,724 14,430 12,593 14,314 -6.4 -23.3
Energy from steam (MWh) 7,915 5,734 5,155 5,775 5,029 38.0 57.4
Total Energy Consumption 80,389 83,970 83,704 81,707 79,231 -4.3 1.5
Energy consumption from PUMA production (MWh)* 246,160 195,866 194,881 180,041 149,709 25.7 64.4

* Includes suppliers of tier 1

  1. Figures include PUMA owned or operated offices.
  2. Includes paper consumption for offices usage in offices, warehouses and stores, card board and paper bags consumption.
  3. Data includes extrapolations or estimations where no real data could be provided.
  4. Excludes on-site generated and consumed energy as well as energy produced on site and sold to the grid.
  5. Includes own production sites in Argentina. All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to independent logistic providers, franchised stores are excluded.
  6. Store data is derived from exemplary stores in each country and extrapolated to cover all stores; methodological changes over the last 3 years do influence results.

We have worked with our core suppliers for almost 10 years on energy efficiency as well as reducing water consumption and waste, for example as part of the Vietnam Improvement Program (VIP) or the Partnership for Cleaner Textiles (PaCT) run by the IFC.

The results of these efforts are visible in a positive overall trend of energy and water consumption per pair or piece of product since 2015, although we see a slight increase in average footwear figures due to changes in our supplier base. New factories had been setup but were not running as efficiently as existing production lines, which caused this slight increase. Going forward, we will work with our suppliers on increasing the efficiency of the new production lines and set new targets to reduce the amount of waste.

T.11 2019 FOOTWEAR E-KPI Results
Summary of Supplier e-KPIs Weighted Change Range 2019
Value Value 2015 Value 2016 Value 2017 Value 2018 Value 2019 2019-2018 2019-2015 Min Max Number of Suppliers
Energy/pair (kWh) 1.5 1.6 1.4 1.2 1.3 4% -15% 0.40 2.08 24
CO2/pair (kg) 1.4 1.1 1.0 0.9 1.0 3% -29% 0.25 1.69 24
Water/pair (l) 18.3 18.4 14.5 14.5 15.2 5% -17% 1.03 61.51 24
Waste/pair (g) 113.6 105.2 115.9 109 127 17% 12% 8.51 230.89 24
T.12 2019 Apparel E-KPI-Enablon Results
Summary of Supplier e-KPIs Weighted Change Range 2019
Value Value 2015 Value 2016 Value 2017 Value 2018 Value 2019 2019-2018 2019-2015 Min Max Number of Suppliers
Energy/pair (kWh) 1.5 0.6 0.7 0.6 0.6 0% -62% 0.13 4.24 23
CO2/pair (kg) 1.4 0.4 0.3 0.3 0.2 -6% -83% 0.07 2.40 23
Water/pair (l) 18.3 6.8 7.6 4.2 4.4 5% -76% 0.8 59 23
Waste/pair (g) 113.6 50.6 44.0 46.5 56.3 21% -50% 2 186 23

Since 2017, we also measure average environmental key performance indicators (E-KPIs) from the manufacturing of fabric as well as artificial and genuine leather. As we have included our main material suppliers into our energy and water efficiency programs and other brands have also expanded their resource efficiency programs at our shared material suppliers, we can see a positive performance trend. The notable improvements in reducing CO2 emissions can partially be attributed to changing boilers from coal or oil to less polluting fuel sources such as rice husk or natural gas.

T.13 2019 EKPIs Leather Production
Summary of Supplier e-KPIs Weighted/m2 Change Range 2019
Value Value 2017 Value 2018 Value 2019 2019-2018 2019-2017 Min Max Number of Suppliers
Energy/m2 (kWh) 9.1 8.7 8.2 -5% -10% 2.3 10.1 6
CO2/m2 (kg) 3.4 3.2 3.2 2% -5% 1.0 4.7 6
Water/m2 (l) 91.8 90.2 74.7 -17% -19% 5 117 6
Waste/m2 (kg) 1.6 0.8 0.8 -8% -50% 0.0 2 6
T.14 2019 EKPIs Textiles Production
Summary of Supplier e-KPIs Weighted Change Range 2019
Value Value 2017 Value 2018 Value 2019 2019-2018 2019-2017 Max Min Number of Suppliers
Energy/t (kWh) 13,679.11 13,386.80 12,636.3 -6% -8% 35,208.4 2,707.4 17
CO2/t (t) 4.45 4.45 4.4 -2% -2% 14.6 1.2 17
Water/t (m3) 119.30 122.78 105.5 -14% -12% 229.0 17
Waste/t (kg) 299.59 70.63 62.08 -12% -79% 532.4 17