Our 10FOR25 sustainability strategy is an evolution of our previous sustainability strategy which was built on creating maximum positive impact. Following an extensive materiality analysis process and stakeholder dialogue, we decided to merge our Human Rights and Social Compliance categories, upgrade our Material targets to Product targets and add the new target categories of Circularity, Plastics and the Oceans, Fair Wages, and Biodiversity. In order to keep the number of target areas manageable, we removed Stakeholder Dialogue, Environmental Profit and Loss (EP&L) accounting, and Corporate Governance from our target matrix. Stakeholder Dialogue and EP&L will be continued as important tools to measure and finetune our sustainability targets. Because corporate governance is growing in importance, it will be reported separately in future.
With our new 10FOR25 sustainability strategy we continue our path to fully integrate sustainability into all our core business functions. Sustainability targets are included in the bonus arrangements of every member of our global Leadership team, from the CEO to the team heads.
After working hard on our sustainability performance in the background rather than center stage, we decided to communicate our sustainability efforts more actively in the future and have added this new focus to the strategic priorities for PUMA.
During 2020 we continued our active stakeholder dialogue, although in a different way. Because all sustainability-related conferences and meetings in our industry had to be conducted virtually, we also held our Regional Supplier and Stakeholder Round Table Meetings in the form of virtual events. As we were deeply involved in global industry-level stakeholder meetings about social compliance, climate change, and chemicals, we decided to postpone our own global stakeholder meeting scheduled for 2020. This freed up resources for our top management to participate in the annual event of the UN-lead Fashion Industry Charter for Climate Action (attended by our CEO), and the Industry Summit on Social Compliance (attended by our CSO). Other PUMA business leaders participated in the Copenhagen Fashion Summit. In addition, we trained our design and product teams on the concept of circularity with the help of the expert organization Circle Economy.
We also engaged in regional one-on-one consultations with key organizations including Better Work Vietnam, Bangladesh and Indonesia, the Fair Labor Association, the Fair Wage Network, the International Organization for Migration, other brands, and critical suppliers to review our workplan on human rights, health, safety, and fair income for 2025. Next year, we plan to engage in even more partnerships for training courses on women empowerment and to continue to open up our hotline to include migrant workers by using specific guidelines and tools.
Despite tight budgets due to the implications of the pandemic, we retained our partnerships with all relevant sustainability organizations and even added new memberships with the formalization of the Fashion Pact and the Industry Summit into own organizations.
AFIRM: Apparel and Footwear International RSL Management, BCI: Better Cotton Initiative, CDP: Carbon Disclosure Project, FESI: Federation of the European Sporting Industry, FFC: Fair Factories Clearinghouse, FSC: Forest Stewardship Council, FLA: Fair Labor Association, GIZ: German Corporation for International Cooperation, IFC: International Finance Corporation, ILO: International Labor Organization, IPE: Institute of Public and Environmental Affairs, ITC: International Training Center, RMG: Ready Made Garments, SAC: Sustainable Apparel Coalition, SLCP: Social and Labor Convergence Program, UNFCC: United Nations Framework Convention Climate Change, WRI: World Resource Institute, WWF: World Wide Fund for Nature, ZDHC: Zero Discharge of Hazardous Chemicals Foundation
Most Material Aspects
For the new target period, we reviewed our most material aspects based on a detailed materiality analysis conducted in 2018/2019, including external and internal stakeholder interviews, a survey, and a stakeholder dialogue meeting. Coordinated by Business for Social Responsibility (BSR), the process resulted in the materiality matrix displayed in Graph G.02 below. Although the Water and Air target is not specifically identified in the formal materiality analysis process, we retained this target, the only one we did not achieve in the last reference period. Honoring our commitment to the Fashion Pact as well as the growing importance of the issue, we also included a new target: Biodiversity.
*SDG: United Nations Sustainable Development Goals
PUMA 10FOR25 Sustainability Targets Performance Summary
|Target||Baseline||Action scheduled for 2021||Target for 2025||Status|
|Equal gender distribution in almost all PUMA entities; no specific training yet in factories||ITC-ILO training on harassment and violence at work for local sustainability staff (train the trainer)||Target 1: Train 100,000 direct and indirect staff members on women empowerment||Not started yet|
|T2 supplier mapping ongoing; subcontractor mapping not yet started||Complete T2 supplier mapping; start comprehensive T3 supplier mapping||Target 2: Map subcontractors and T2 suppliers for human rights risks||In progress|
|19,000 community hours (some activities paused due to COVID-19)||Increase level of community engagement to 23,000 hours||Target 3: 25,000 hours of global community engagement per year||In progress|
Health and Safety
|Zero fatal accidents since 2018||ITC-ILO training on OHS for sustainability staff (train the trainer)||Target 1: Zero fatal accidents (PUMA and suppliers)||Achieved for 2020|
|Supply-chain injury rate reduced from 0.5 to 0.4||ITC-ILO training on OHS for sustainability staff (train the trainer)||Target 2: Reduce accident rate to 0.5 (PUMA and suppliers)||Achieved for 2020|
|Bangladesh Accord in transition; other activities paused in 2020 due to COVID-19||Resume Building Safety Assessment Program in 2021; conduct building inspections in India and Pakistan||Target 3: Building safety policy operational in all high-risk countries||In progress|
|0.59% of RSL failure cases at the product level among all products||Pilot OEKO-TEX®-certified polyester used in footwear; continue staff and supplier training||Target 1: Ensure 100% of PUMA products are safe to use||Achieved for 2020|
|1.2% RSL failure rate||Reduce RSL failure rate to below 1.1%||Target 2: Reduce Restricted Substances List (RSL) failures to under 1%||In progress|
|VOC index of 15 gr/pair||Continue VOC Reduction Program||Target 3: Reduce organic solvent usage to under 10 gr/pair||In progress|
Water in Air
|Target achieved for all parameters (90% compliance with ZDHC Wastewater Guidelines on parameter level)||Roll out supplier chemical conformity reports||Target 1: 90% compliance with ZDHC Wastewater Guidelines||Achieved for 2020|
|Draft ZDHC Air Emission Guidelines issued; supplier mapping completed||Start air emissions testing||Target 2: 90% compliance with ZDHC Air Emissions Guidelines||Not started yet|
|2% water reduction in textile production YOY||Expand Water Efficiency Program||Target 3: 15% of water reduction per pair or piece based on 2020 baseline||Not started yet|
|Initial mapping of 1.5 degree alignment completed||Execute alignment as part of wider industry target (Fashion Industry Charter)||Target 1: Align PUMA’s Climate target with 1.5 degrees global warming scenario||In progress|
|100% renewable electricity for PUMA entities (including RECs)||100% renewable electricity for PUMA entities||Target 2: 100% renewable electricity for PUMA entities||Achieved|
|Solar Photovoltaic Feasibility Programs in place; first suppliers started purchasing off-site renewable electricity||Finalize feasibility studies and start installing solar panels; accelerate off-site renewable electricity purchase||Target 3: 25% renewable energy for core suppliers||In progress|
Plastics and the Oceans
|400 tons of plastic bags used in PUMA stores||50% reduction to 200 tons||Target 1: Eliminate plastic bags from PUMA stores globally||In progress|
|Joined Microfiber Consortium||Test PUMA’s main synthetic fabrics for microfiber shedding||Target 3: Support scientific research on microfibers||In progress|
|Internal circularity training and workshop; biodegradability standards introduced||Continue research until standards are met||Target 3: Research biodegradable plastics options for products||In progress|
|Task force launched under leadership of PUMA Retail team||Pilot takeback scheme in one market||Target 1: Establish takeback schemes in all major markets||In progress|
|Apparel: 1.6 gr/piece
Footwear: 17.1 gr/pair
Textiles: 8.9 kg/ton
Leather: 0.2 kg/m2
|Expand program to reduce production waste to landfills||Target 2: Reduce production waste to landfills by at least 50%||Not started yet|
|0.6% recycled cotton used; recycled leather and rubber used at pilot scale||Expand use of recycled cotton, leather, and rubber; add recycled nylon||Target 3: Develop recycled material options for cotton, leather, and rubber||Target achieved; usage figures will be reported going forward|
|Target achieved for cotton and down, and 99.5% for polyester (apparel and accessories). Leather (footwear) close to target 97.9%.||Maintain cotton, polyester, and down performance; achieve target for leather; increase percentage of certified polyester used in footwear||Target 1: Procure 100% of cotton, polyester, leather, and down from certified sources||Achieved for 2 out of 4 materials|
|16.7% of recycled polyester used||Implement developed material strategy; explore opportunity to recycle pre-consumer apparel waste||Target 2: Increase recycled polyester use to 75% (apparel & accessories)||In progress|
|81% of apparel and 47% of accessories classified as more sustainable
24% of footwear with at least one more sustainable component
|Increase percentage further
Use more sustainable materials for each part of our footwear
90% of apparel and accessories classified as more sustainable
90% of all footwear contains at least one more sustainable component
|Bangladesh and Cambodia assessed during previous period; work paused in 2020 due to COVID-19||Assess one additional country (Indonesia)||Target 1: Fair-wage assessments for top 5 sourcing countries||In progress|
|33% core T1 factories have elected workers' representative||Conduct supplier and staff training on workers’ committees; develop tool to assess the efficiency of workers’ committees||Target 2: Effective and freely elected worker representatives at all core suppliers||In progress|
|90% of core T1 and T2 suppliers use bank transfer payments||Follow up on factories with no digital payment||Target 3: Ensure bank transfer payments for all core suppliers||In progress|
|Attended Fashion Pact’s biodiversity webinars||Learn more about biodiversity SBTs||Target 1: Support setting up a biodiversity SBT||Not started yet|
|Cotton target achieved; leather target (97.9%) achieved; viscose target achieved (sourced exclusively from a reliable supplier (Lenzing)||Achieve target for leather||Target 2: Procure 100% of cotton, leather, and viscose from certified sources||2 out of 3 materials achieved|
|No exotic skins or hides used||Publish new Animal Welfare Policy||Target 3: Zero use of exotic skins or hides||Achieved|
|ILO: International Labor Organization, ITC: International Training Center, OHS: Occupational Health and Safety, REC: Renewable Energy Attribute Certificates, RSL: Restricted Substances List, SBT: Science-Based Target, SLCP: Social and Labor Convergence Program, T2 Supplier: supplier of materials or components, T3 Supplier: supplier of yarn hides, etc., VOC: Volatile Organic Compound, ZDHC: Zero Discharge of Hazardous Chemicals|
The 10FOR25 targets also are linked directly to the four main 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 with chemical regulations during production (T1 or T2)
D. Negative effects of climate change
Further details on PUMA’s overall risk management can be found in the Risk Management section. Net risks as outlined in the CSR Directive Implementation Act (§315c in relation to §289c, section 3, number 3 and 3 German Commercial Code (HGB), were not identified in 2020.
*T1 manufacturers of PUMA products; T2 manufacturers of materials and components
Scope of data collection
In this report we cover the PUMA Group. We have provided separate reports for PUMA SE and the PUMA Group within the “Governance and our People” section only. Our materiality analysis and EP&L clearly indicate that a major aspect of our impact originates in the manufacturing of materials and components, not in the assembly of finished goods. We therefore have extended our data collection to include our core suppliers of components and materials.
To ensure a high level of transparency and promote the sharing of environmental and social data with our industry peers, we have chosen to use external databases, most of which are publicly accessible:
Also, we use our sustainability data collection tool to record social and environmental performance data from PUMA-owned and -operated sites and from the core suppliers that manufacture our products.