BIODIVERSITY

Target description:

• Support the industry in setting a science-based target for biodiversity
• 100% cotton, leather and down procured from certified sources (shared target)
• Zero use of exotic skins and hides

In 2022 the world’s biodiversity experts and politicians met in Montreal for the biodiversity COP 15 and agreed to conserve 30% of the world’s land and oceans by 2030.

Consequently, we have dedicated one of our 10FOR25 sustainability targets to biodiversity. While most of PUMA’s biodiversity impact is routed in the supply chain, we include biodiversity checks in our annual environmental data collection for our own offices, stores and warehouses around the globe.

These checks confirm that none of our PUMA sites are located within a protected area. We have identified one site in South Africa, as being located next to a protected area, which holds a rare species of the plant, Renosterveld Finbos. This site is an office location, and fenced off from the protected area, so that any negative impact on these plants can be excluded.

There are green roofs on our German headquarters, as well as our (outsourced) German central logistics center, which offer additional habitats for insects as well as wildflower meadows and beehives to allow for an active bee population at both sites.

Many species, including plants, animals, bacteria and fungi are being threatened with extinction due to human activities such as deforestation, putting the earth’s magnificent biodiversity at risk. Apparel supply chains are directly linked to soil degradation, conversion of natural ecosystems and waterway pollution.

Two thirds of apparel shoppers say that limiting the impact on climate change is now more important to them than before COVID-19.^*

PUMA is a signatory of the Fashion Pact, a global initiative of companies in the fashion and textile industry (ready-to-wear, sport, lifestyle and luxury), all committed to a common core of key environmental goals in three areas mitigating global warming, restoring biodiversity and protecting the oceans.

Biodiversity loss and climate change are interdependent and mutually reinforcing. For example, protecting forests could help reduce greenhouse gas emissions. In turn, the rise of global temperatures increases the risk of species extinction. In 2019 PUMA published its science-based emissions target (SBT) with the SBT Coalition and joined the Fashion Pact. In 2022 this science-based emissions target was updated and aligned with a 1.5-degree climate pathway.

Please see the Climate section of this report for climate action and progress.

Most of the negative impact on biodiversity comes from three stages in the value chain – raw material production, material preparation and processing, and end of life.

To mitigate the risk of biodiversity loss due to the production process, we address environmental pollution risk through our targets and suppliers’ program on climate, chemicals, water and air.

In 2021 we developed roadmaps for water and waste, which can be found in the Water and Air, Plastics and the Oceans sections of this report. In 2022 we developed a biodiversity roadmap using the Fashion Pact Biodiversity Strategy Tool Navigator that is in line with SBTN recommendations.

^*Biodiversity: The next frontier in sustainable fashion – McKinsey.

BIODIVERSITY ROADMAP

Scope: Cotton, Leather, Rubber, Paper, MMCF, Synthetics, Wool

Below are key focus areas for the coming years. Some actions were taken in 2022 and are reported in this report.

• Raise awareness: We see the need to increase internal awareness and thus will be developing e-learning on biodiversity for our staff. We also see the need to increase the awareness of our consumers, either by reporting decreases in biodiversity loss in our Annual Report or exploring marketing campaigns to engage customers’ awareness. We aim to keep a transparent disclosure to keep a strong relationship with stakeholders while informing on biodiversity actions. In 2022, PUMA sponsored a report as an opportunity to show collaboration and knowledge-sharing in biodiversity. Together with Textile Exchange, Conservation International and the Fashion Pact, the Biodiversity Landscape Analysis report aims to provide a common reference point on the topic of biodiversity in the textile industry, and to offer concrete pathways for brands and retailers to deepen their engagement. The report intends to support companies of all sizes and maturities in beginning or continuing their biodiversity journey and will be published in 2023.
• Knowledge of impact: We will explore traceability tools and conduct impact assessments, starting with leather and rubber in 2023. We collect material and packaging data consumption on an annual basis for the country of origin. For example, leather used in PUMA products originates to a small percentage from South America, where deforestation is occurring at a rapid pace. Our EP&L identifies our environmental impact distribution along our value chain, for example, land use change per country, material type and tier level. The estimation of the potential financial impact on land use was approximately € 150 million, from our 2022 EP&L.
• Internal action: We will define a KPI to be included in a supplier scorecard (environmental & chemical) and set biodiversity targets as well as traceability targets, starting with leather. We set goals to reach 100% cotton, leather, viscose, paper packaging and down procured from certified sources in 2025. Both cotton farming and cattle ranching require extensive land use and have been cited to reduce biodiversity, 99.8% of cotton used in PUMA products are BCI or recycled cotton. 100% of the leather used in our footwear is sourced from LWG medal rated tanneries. Leather traceability is a first step towards reducing deforestation. We monitor our LWG (Leather Working Group) medal-rated tanneries' traceability performance and have joined the LWG traceability working group. We partner with the NGO, Canopy, a Canadian non-profit organization with the mission to protect the world’s forests, species and climate, and to help advance indigenous communities’ rights. We aim to ensure our sourcing of man-made cellulosic materials (such as viscose) as well as paper and carboard, does not contribute to deforestation. 99.4% of our paper packaging is either recycled and/or FSC-certified. We commit to sourcing 100% of our viscose from suppliers committed to reducing the risk of sourcing from ancient and endangered forests. In 2022, 97% of viscose was sourced from Green Shirt-rated suppliers. We hardly used wool throughout 2022 (less than one ton), thus we have not yet initiated Responsible Wool Standards, but we still aim to reach 100% certified responsible wool in 2025.
• Collaboration and partnership: PUMA joined the Fashion Pact, a global coalition of companies in the fashion and textile industry that is committed to stopping global warming, restoring biodiversity and protecting the oceans. PUMA joined the Fashion Charter, committed to source 100% of priority materials as preferred materials by 2030 (material for which no natural ecosystems are converted or deforested). In 2021 we engaged with Canopy, who helped us develop our policy on forest protection. We also engaged with Canopy‘s initiatives: CanopyStyle and Pack4good. Through these initiatives we started investigating the next generation of raw materials with a focus on biobased materials, such as wheat straw, as a partial substitute for paper in our shopping paper bags.

In 2021 we published the PUMA biodiversity policy and animal welfare policy, to create a framework for our approach related to biodiversity and animal welfare. These policies are available for download on our website.

As part of the Fashion Pact, we commit to support the development of science-based targets on biodiversity.

“We congratulate PUMA for their active engagement in providing direction and guidance for the fashion industry to act for the preservation of biodiversity through the sponsoring of the Biodiversity Landscape Analysis. We strongly acknowledge their courageous leadership in moving ahead and developing a biodiversity roadmap in line with science-based target for nature recommendations. These are the critical first steps to understanding our impact as an industry and transforming companies’ relationship with nature.”

EVA VON ALVENSLEBEN
Executive Director and Secretary General, The Fashion Pact

To help the protection of endangered forests and species, PUMA commits not to use any wood or wood-derived fabrics made from ancient and endangered forests.

• PUMA engages as a supporting partner of the CanopyStyle initiative, aiming to source our viscose only from Green Shirt-rated suppliers.
• We commit to sourcing the leather used in PUMA products only from manufacturers who implement industry good practice standards of environmental management and traceability, such as the leather working group.
• We commit to sourcing all our paper and paper-based packaging from recycled sources and/or Forest Stewardship Council-certified sources. PUMA is engaging as a partner of Canopy’s Pack4Good initiative to collectively reduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next generation solutions.

At PUMA we care for the welfare of animals. We do not accept the use of animal products which originate from animals which have been treated inhumanely. Therefore, we aim to implement high welfare and traceability standards and have published an Animal Welfare Policy. PUMA consults animal protection organizations on a regular basis to review our policy and actions. As a concrete action to support animal welfare, we will phase out the use of kangaroo leather during 2023.

“PUMA’s willingness to do better for animals is shown through their continuous steps forward to improve their animal protection policies, including most recently to end their use of Kangaroo skin and joining the Fur Free Retailer Program. PUMA’s progress is admirable, and we commend their team for their dedication to sustaining this positive journey.”

ANNE WESSENDORF
Textile Campaigner and Corporate Manager, FOUR PAWS

PUMA CDP FOREST SCORE

PUMA’s CDP Forestry score improved from C in 2021 to B- in 2022. PUMA’s rating is better than the average performance of the sector (textile and fabric goods) with an average rating of C. The overall global average rating stands at C.