Wednesday, April 20, 2011

PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting

PUMA's efforts to improve social, labor and environmental standards throughout its operations date back to 1999. Since then the company has continuously incorporated environmental standards and practices to reduce its impact on the planet,

According to Jochen Zeitz, Chairman and CEO of PUMA, the companies mission is, “ to be the most desirable and sustainable Sportlifestyle company in the world.” To help with this mission the athletic apparel manufacturer identified opportunities to further manage the company's footprint using E-KPIs (Environmental Key Performance Indicators).

In 2010 PUMA launched another phase of the puma.safe initiatives and long-term sustainability program. It includes a set of ambitious targets. The company announced that it is reducing carbon, energy, water, and waste by 25 percent. PUMA also said that it will produce half of its international product collections in footwear, apparel and accessories according to best practice sustainability standards by 2015.

The athletic apparel manufacturer is cutting paper use by 75 percent and offsetting the remaining paper usage through tree planting initiatives. Through more efficient product transport solutions by logistic partners, the company will reduce CO2 by 25 percent. PUMA is also greening its supply chain by collaborating with strategic suppliers and logistic service providers to offset their own footprints.

Additionally, 50 percent of PUMA’s international collections will be manufactured according to the PUMA S-Index standard by 2015. This involves using sustainable materials such as organic cotton, Cotton Made in Africa or recycled polyester as well as applying best practice production processes.

To monitor these objectives the sports and lifestyle brand is also establishing an external Advisory Board of experts in sustainability to consult on the company’s mission and audit their sustainability program.

PUMA joined the UN Climate Neutral Network and has the industry’s first carbon neutral head office — the PUMA Vision Headquarters in Herzogenaurach, Germany.

Now Puma is producing the first-ever Environmental Profit and Loss (EP&L) statement. The company's new method of accounting will allow it to produce a new type of integrated reporting. The EP&L statement will attempt to measure the full economic impact of the brand on ecological systems including water and air. Puma commissioned Trucost and PwC to assist in developing the EP&L methodology.

The EP&L project is part of a larger environmental initiative by Puma’s parent company PPR Group, whose other brands include Gucci, Yves Saint Laurent and Stella McCartney. The group is also launching a “creative sustainability lab” in consultation with Cradle-to-Cradle, which PPR says will foster a new approach to product and business development. In this new approach, products and services will move beyond typical measures of quality--cost, performance and aesthetics--to integrate and apply additional objectives addressing environmental and social concerns.

The group said the overarching program, dubbed PPR Home, will go beyond the traditional Corporate Social Responsibility model and set a new standard in sustainability and business practice in the Luxury, Sport & Lifestyle and Retail sectors.

PBR bought carbon credits from Wildlife Works Reduced Emissions from Deforestation and Degradation (REDD) offsetting project in Kenya. The group has offset 98,729 tons of global CO2 emissions in 2010 for its Luxury group. Further, the Puma brand and PPR’s headquarters are both committed to carbon neutrality.

© 2011, Richard Matthews. All rights reserved.

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