Nachhaltigkeitsziele_Head

sustainability_targets

 

Social Target

Factory audits remain the main enforcement tool of compliance to PUMA’s Code of Conduct and provide us with an instant picture of the level of compliance of the factory. As part of our so-called Sustainability Scorecard 2015, we aimed for 90% of PUMA’s suppliers to receive an audit rating of A or B+ by 2015. PUMA continues to use the A, B+, B-, C and D grading criteria to rate factory performance against our Code of Conduct. For more information regarding PUMA’s auditing process, please click here.

While viewing the rating performance over the years, it needs to be considered that in 2014 the audit rating methodology was changed significantly by expanding the audit questions from 200 questions to 323 questions. Additionally, stricter penalties were imposed for non-compliance with critical issues, thereby making it more difficult for suppliers to achieve an A or B+ rating. Therefore, the target was adjusted in 2014 from 90% A and B+ compliance according to the old rating methodology to a 70% A and B+ rating score according to the new rating methodology.

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The table below shows the audit ratings from PUMA Group Sourcing Tier 1 suppliers in 2014 and 2015. Taking into account the changes described above, 152 suppliers (67%) have achieved an A or B+ rating. If we consider the production volumes represented by those suppliers, this figure is 80%.

Reflecting on the 2015 target, we can conclude that the original targets of 90% (rating system) and 70% (new rating system) were missed in terms of absolute number of suppliers. Considering production volume and the stricter new rating methodology, the new 2015 target was achieved with 80% of our production volume sourced from A or B+ rated suppliers.

Going forward, we will break down our performance for our core suppliers beyond audit result categories and measure more specific individual KPIs, for example social security coverage, overtime hours or payments in relation to the minimum wage. In 2015, we started reporting these KPIs already for our Chinese key suppliers.

“The Parisian Climate Agreement of December 2015 represents a global energy transition. In regard to companies, the management of supply chains is of crucial importance. With its sustainability strategy, PUMA is on the right track to anchor climate protection even deeper and more effectively and align the company consistently on a 2°-economy.”

“The Parisian Climate Agreement of December 2015 represents a global energy transition. In regard to companies, the management of supply chains is of crucial importance. With its sustainability strategy, PUMA is on the right track to anchor climate protection even deeper and more effectively and align the company consistently on a 2°-economy.”

Sabine Nallinger, CEO, Stiftung 2°

 

Environmental Targets

Our 2015 environmental targets are broken down into efficiency targets for our own entities (offices, stores and warehouses) and targets for our key suppliers.

Energieverbrauch

Energy Consumption and CO2 Emissions
Energy consumption and CO2 emissions for our own entities are mainlycomprised of

– Electricity consumption within our buildings
– Consumption of natural gas or district heat for heating our buildings
– Consumption of fuel for our company cars

This composition gives us the opportunity to create win-win situations by both improving our environmental performance and saving money through more energy efficient buildings, heating systems and company cars.

The average emission factor of our PUMA car fleet at the headquarters in Germany, for example, has decreased in 2015 from 132 gr CO2/km to 122 gr CO2/km, resulting in financial savings of approximately 
€ 30,000 per year for the 227 company cars in Germany alone.

Related to electricity consumption, we saw the first opening of a PUMA store in 2015 under our new “Forever Faster” store concept, which exclusively uses highly energy efficient LED lights. By year-end 2015, 20 PUMA stores globally had executed the new concept and thus fully converted to energy efficient lighting. The introduction of the first LEDs in our stores was accompanied by professional energy efficiency audits in PUMA stores in France, Germany and the UK.

Looking at the overall energy figures, we can see that we could achieve a relative reduction of 6% energy consumption per employee from 2010 to 2015. In absolute terms, the energy consumption increased by 8%.

This translates into a relative CO2 emission reduction of 20% for Scope 1 (direct emissions) and 13% for Scope 2 (indirect emissions). This was also supported by a significant increase in the purchase of renewable electricity from 10% in 2011 to 14% in 2015 as well as the energy creation from several photovoltaic power plants at headquarters and stores in Herzogenaurach, Germany, and at the head office in the USA.

1. Figures include PUMA owned or operated offices, warehouses and stores. Outsourced warehouses and franchised stores are excluded.

2. Includes paper consumption for office usage in offices, warehouses and stores, excludes 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.

7. PUMA uses own methodology for CO2 accounting, with reference to the GHG protocol, but only reports CO2 emissions, not CO2 equivalent emissions.

8. PUMA uses own methodology for CO2 accounting, with reference to the GHG protocol, but only reports data from business travel, transportation of goods as well as from production of Tier 1 suppliers under Scope 3 emissions.

For an overview of our performance against targets, please refer to table T.2 E-KPIs on the next page.

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CO2 Emissions from Transportation of Goods

Most of PUMA’s transportation activities originate from the main manufacturing markets in Asia, which serve all other markets globally, and this is why transportation is a key contributor to the CO2 emissions.

The rise in tons emitted from 51,784 t to 57,828 t by 11.7% is fully in line with the rise in tonnage transported due to more goods sold due to PUMA’s new strategic setup.

Emissions per ton transported have remained stable throughout the previous years, which is due to diligent planning and implementation of guidelines and programs to save space and use best available means of transportation focused on the needs of the business.

Courier services are reported separately by PUMA’s main stakeholder Kering, located in Paris, France. The current indication is that courier service B2B emissions account for less than 3% of our overall B2B emissions globally.

While we clearly missed our 25% reduction target set from 2010 to 2015, our declared goal remains to continuously drive our partners and service providers to improve efficiency of transport vehicles and services. This goes hand in hand with improvements made to the supply chain.

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We are fully aware that to effectively limit global climate change to two degrees or less, much more ambitious targets are required going forward. Even though PUMA is only one of many players in the global climate debate, we stand ready to contribute our fair share. Therefore, we have committed to calculating a science-based target for PUMA together with climate experts from WWF, the Carbon Disclosure Project and Stiftung 2° and plan to implement this target within the next two years.

Nachhaltigkeitsziele_Collage

Wasserverbrauch
Water Consumption

Water consumption from our own entities is mainly for sanitary and kitchen usage. Therefore, the saving opportunities lie within water-efficient toilets, faucets, dishwashers, etc. The capturing and usage of rain water, as is done in our German headquarters, is another way to save grid water consumption, since drinking water quality is not always needed for all purposes.

Looking at table T.2, we have achieved relative and absolute savings of 22% and 11%, and therefore fell short of our 2015 target by only 3%. At an average cost of € 2 per m3, the saving of 12,000 m3 grid water per year also helped us to realize a financial saving of approximately € 25,000 per year.

For the next target period, we will no longer focus on water consumption in our own entities, but rather on water consumption and treatment in our supply chain, which has by far more relevance in terms of environmental impact.

ABFALL
Waste Creation

Through the usage of office paper, packaging materials in our warehouses and packaging of the goods sold in our stores, we are creating significant volumes of waste.

Fortunately, most of this waste is recyclable. Particularly through the segregation and recycling of cardboard and paper as secondary raw material, we can even generate some revenue from our waste and thus help to reduce the disposal cost for waste overall.

Between 2010 and 2015, the percentage of waste going into recycling increased and now stands at 59% of all waste being recycled, while the overall amount of waste per full-time employee has decreased significantly by 32%.

We have therefore achieved our target of 25% reduction for 2015. Going forward, we will continue to measure the creation and recycling of our waste on a global level. For the future targets up to 2020, we will focus – similar to the water consumption – on our manufacturing partners rather than our own entities, because waste production in the supply chain is significantly higher than at PUMA’s own locations.

Papier
Paper Consumption

Paper consumption from our own entities (excluding product packaging) could be reduced significantly over the last five years. For both the average consumption per full time employee (-44%) and the total overall consumption (-36%), we achieved our 25% reduction target.

This in turn helps to save on the cost of paper and also adds significantly to the waste reduction, since paper and cardboard is our largest waste fraction.

Extrapolating on the paper savings with the cost of office paper at € 1 per kg, we estimate the total savings made at over € 100,000 per year.

Besides reducing unnecessary consumption, we have constantly been increasing the percentage of recycled and/or certified paper within our own entities. Starting from 47% in 2010, we now stand at 56% of certified and/or recycled paper consumption and will continue to push increasing this figure further.

Nevertheless, also in the field of paper and cardboard consumption we will shift our focus and target from the corporate level more towards the production level going forward. As a first and important step, we already implemented an FSC®-certified new standard shoe box with a recycled paper content of over 90% for our footwear products. To put this into perspective, we are using approximately 50 times more recycled and certified paper through the new box than in all of our offices, stores and warehouses worldwide.