Our 10FOR20 sustainability strategy aims to create maximum positive impact. This holds true for our products, as well as for working conditions at PUMA and its supply chain, and the communities around us. We don’t want to grab quick headlines with niche sustainability collections, although such collections can help to create consumer awareness. Rather, we want to deeply integrate sustainability into all core business functions and all PUMA products. This way our sustainability strategy is integrated with our overall company strategy and our sustainability efforts are much more authentic.
Target Description:
Continue and expand PUMAs Stakeholder Dialogue and Public Non-Financial Reporting in accordance with global standards; increase sustainability communication towards consumers.
Relates to United Nations Sustainable Development Goal 17.
Example from the 10FOR20 Action Plan:
KPIs:
Ever since our first global stakeholder meeting in 2003, we aim to align our sustainability program and actions with the expectations of our most relevant stakeholders. Therefore, we are constantly talking to our investors, suppliers, customers, consumers, athletes, industry peers, NGOs, scientists and of course our biggest asset, our employees.
For us, a stakeholder dialogue means not shying away from inconvenient topics and admitting that we cannot solve everything on our own. It means working on these topics in close collaboration with experts and our industry peers and, of course, always in line with anti-trust regulations.
For the first time in 2019, we invited more than 50 relevant stakeholders to our PUMA headquarters in Herzogenaurach. This way we shared the PUMA spirit with our guests, while at the same time allowing our top management (including our CEO and CSO) to participate on both days.
We focused our discussion on the hot topics of climate change, living wages, plastics and oceans as well as circularity, and used the feedback provided during the event to sharpen our 10FOR25 targets. As an immediate outcome of the meeting, we agreed to align our climate action target to a 1.5 degree scenario and increased our recycled polyester target from a proposed 25% to 75% until 2025. For a more detailed description of the results, please refer to the chapter Summary and new Targets for 2025
We also conducted supplier round tables in all major sourcing regions (China, Vietnam & Cambodia, Bangladesh, Indonesia, India, Europe & Africa, and Latin America), reaching almost 600 supplier participants. This way we can openly discuss our sustainability vision with our manufacturing partners and ensure their buy-in for our individual sustainability programs.
We have been transparent about our sustainability efforts ever since we published our first sustainability report in 2003. We continue to inform the public in our annual report as well as on our corporate website (https://about.puma.com/en/sustainability).
Our new consumer-facing Forever Better website will be updated frequently with product-related sustainability information. It will also highlight collections with a special sustainability focus, such as the First Mile Collection, which uses recycled polyester, and the Day Zero Collection, which uses water saving technologies.
To improve the sustainability performance of the materials used in our products, we are working together with a number of partners such as bluesign Technologies, the Leather Working Group, the Better Cotton Initiative, the Forest Stewardship Council, and Sustainable Apparel Coalition as well as Textile Exchange. Overall, our global sustainability initiatives are supported by regional partnerships with organizations such as the Bangladesh Accord on Fire and Building Safety, the Indonesia Protocol on Freedom of Association, the Chinese National Textile and Apparel Council and the German Partnership for Sustainable Textiles. Another example of local action would be our work with UNICEF to support water and hygiene standards in South Africa. Lastly, we are active members of the World Federation of the Sporting Goods Industry as well as the European Sporting Goods Industry Federation.
AFIRM: Apparel and Footwear International RSL Management, BCI: Better Cotton Initiative, CDP: Carbon Disclosure Project, FESI: Federation of the European Sporting Goods Industry, FLA: Fair Labor Association, IFC: International Finance Corporation, ILO: International Labor Organization, IPE: Institute of Public and Environmental Affairs, SLCP: Social and Labor Convergence Program, ZDHC: Zero Discharge of Hazardous Chemicals
The most material aspects and targets for the 10FOR20 target period remained unchanged and are displayed in figures 1 and 2 below.
* SDG: United Nations Sustainable Development Goals.
| Target | Baseline 2015 | Performance 2019 | Planned Action 2020 | Target 2020 | Status |
|---|---|---|---|---|---|
 01Stakeholder Engagement |
Talks at Banz Supplier Round Tables |
Global Stakeholder Meeting at Headquarters Regional Supplier Round Tables with 590 participants Forever Better Website launched |
Stakeholder Dialogue Meetings, Supplier Round Tables and Public Reporting will be continued Consumer outreach will be intensified |
Stakeholder dialogue Public reporting Consumer information |
Achieved |
 02Human Rights |
Human Rights Screening | Human Rights Assessments carried out for PUMA and supply chain Recruitment Fees eliminated from T1 suppliers 21,433 community engagement hours; |
Continue implementation of Human Rights policies Focus on elimination of recruitment fees for T2 suppliers Carry out an analysis on conflict minerals |
Embed Human Rights across our operations and suppliers Positively impact communities where PUMA is present |
Achieved. Target will be moved to 2025 targets |
 03Social Compliance |
All Tier 1 suppliers frequently audited Workers complaints received and progressed |
All Tier 1 suppliers and core T2 suppliers frequently audited Amount of Zero Tolerance Issues prevailing at year end: 0 Joint industry assessment tool (SLCP) rolled out in China Percentage of shared audits: 43% |
No Zero Tolerance Issues prevailing at year end Implement joint industry assessment tool (SLCP) Increase percentage of shared audits to 50% |
Compliance with industry standards/ILO Core Conventions for all core suppliers, including suppliers of finished goods as well as component and material suppliers | Achieved. Target will be merged with Human Rights going forward |
 04Climate Change |
Science-Based Target (SBT) development announced | Science based target accepted and published: Scope 1 and 2: -35% Scope 3: -60% relative to sales Coverage of 75% of all electricity used by renewable energy tariffs or certificates. PUMA (Scope 1&2) Scope 1: -8.6% Scope 2: -5.5% Scope 2 (RECs) -47.9% Combined: -38.5% (absolute) Suppliers (Scope 3): -4.9% relative to sales |
Coverage of 90% of all electricity used globally by renewable energy tariffs or renewable energy certificates Offset remaining Scope 1 and 2 emissions Focus on savings for Scope 3 emissions (supply chain) |
Science based reduction target to be developed and implemented | Achieved for Scope 1&2. Scope 3 work in progress. Target will be moved to 10FOR25 targets |
 05Chemicals |
Commitment to Zero Discharge of Hazardous Chemicals | RSL compliance rate of 98.9% Wastewater tests from core suppliers show 94% compliance on individual chemical parameters PFCs eliminated from PUMA products VOC Index below 16g/pair |
Keep RSL compliance rate over 98% Improve wastewater compliance rate on individual chemical parameters above 95% Reduce VOC consumption per pair of shoes below 15g/pair |
Zero discharge of hazardous chemicals from our supply chain | Phase out of intentional use of hazardous chemicals (ZDHC MRSL and PFCs) achieved. Target will be moved to 10FOR25 Targets |
 06Water & Air |
Start of wastewater testing and publication | Bi-Annual Wastewater Tests established at all core suppliers with Wet-processing Compliance rate of conventional parameters above 90% for 16 out of 17 parameters First draft of ZDHC Air Emissions Guideline available |
Improve compliance rate of conventional wastewater parameters to above 90% for all parameters Pilot Draft ZDHC Air Emissions Guideline |
Industry good practice on water treatment and air emissions are met by 90% of PUMA core suppliers | Target not yet achieved. Will be carried to the new 10FOR25 Targets |
 07Materials |
bluesign® (polyester), Leather Working Group (leather), and FSC (paper & cardboard) certification used in significant volumes | Apparel: Cotton - BCI: 80% Polyester - bluesign® / OEKO-TEX: 98% Down Feathers - Responsible Down: 100% Leather - LWG: 98% Cardboard & Paper: FSC/Recycled: 100% Accessories: Polyester - bluesign® / OEKO-TEX >99% |
BCI >90% FSC/Recycled >90% LWG >90% bluesign®&OEKO-TEX > 90% Responsible Down 100% |
More sustainable materials used for our key materials: FSC 90% LWG 90% bluesign® 50% BCI 50% |
Original 2020 Targets already achieved in 2018 2020 Target for cotton and polyester upgraded to 90% Targets will be merged into a more sustainable products target |
 08EP&L |
Kering Group EP&L published (including PUMA figures) | PUMA EP&L 2018 published Reduction per unit of turnover from 2013 to 2018 of 13.6% |
Keep publishing EP&L values Keep reducing the value per unit of turnover |
Continue to report yearly on our impact PUMA EP&L value significantly reduced |
Target achieved. EP&L impact will be reported on PUMA website |
 09Health & Safety |
OHS part of compliance audits | Fatal Accidents PUMA: 0 Suppliers: 0 Injury Rate PUMA: 0.37 Core Suppliers: 0.5 |
Zero fatal accidents Average injury rate of PUMA entities below 1 |
Zero fatal accidents Injury rates below industry average Significantly reduce injury rates; |
Target achieved. Will be continued as part of 10FOR25 targets |
 10Governance |
PUMA Code of Ethics training with low participation rate Ethics training participation rate: 60% |
PUMA Code of Ethics training participation rate: 99% (staff with email accounts) 97.6% of suppliers (99% of core suppliers) trained in anti-corruption Anti-corruption section included in supplier audit tool |
Ensure PUMA staff (with email account) training rate remains over 95% Keep supplier training rate over 95% |
Maintain and run a state-of-the-art compliance system | Target achieved. Will be part of normal Governance routine at PUMA going forward |
| BCI: Better Cotton Initiative, EP&L: Environmental Profit and Loss, FSC: Forest Stewardship Council, ILO: International Labor Organization, LWG: Leather Working Group, MRSL: Manufacturing Restricted Substance List, OHS: Occupational Health and Safety, PFCs: Polyfluorinated Chemicals, PU: Polyurethane, REC: Renewable Energy Attribute Certificates, RSL: Restricted Substance List, SBT: Science-Based Target, SLCP: Social and Labor Convergence Program, VOC: Volatile Organic Compound, ZDHC: Zero Discharge of Hazardous Chemicals. | |||||
The 10FOR20 targets are also directly linked to the 4 significant sustainability related risks identified in our due diligence process:
A. Potential human rights violations or incidents in our supply chain (T1 and T2*)
B. Potential incidents of environmental pollution in our supply chain (T1 or T2)
C. Potential non-compliance to chemical regulations during production (T1 or T2)
D. Negative effects of climate change
Further details on PUMAs overall risk management can be found in the risk management section on of this Annual Report.
* Manufacturers of PUMA products; T2 Manufacturers of Materials and Components
During 2019, the most material aspects for the new target period 2025 were further refined in an intensive stakeholder consultation process and are discussed in the chapter Summary and new Targets for 2025.
This 2019 sustainability section will still follow the 10FOR20 methodology (figure 3), while from 2020 onwards we will use the updated 10FOR25 materiality analysis and targets.
In this report we cover the PUMA Group. Our materiality analysis and EP&L clearly indicate that a major part of our impact originates in the manufacturing of materials and components and not in the assembly of finished goods. We therefore added our core suppliers of components and materials to the scope of our data collection.
To ensure a high degree of transparency and to promote the sharing of environmental and social data with our industry peers, we have chosen to work with external and often public databases:
We also collect social and environmental performance data of our company’s own sites and from our core suppliers manufacturing our products.
