PUMA conducts regular due diligence on human rights & labor, environmental and integrity risks (listed in T.03) for its own activities and across its supply chain as per the recommendations of the UN Guiding Principles for Business and Human Rights as well as the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, and other relevant responsible business conduct standards. We embed responsible business conduct in our own policies, training and management systems and identify actual and potential harms in our own operations and supply chain.
|Human Rights & Labor Risks||Environmental Risks||Integrity Risks|
|Child labor||Greenhouse gas (GHG) emissions||Bribery and corruption|
|Forced labor||Water scarcity|
|Occupational health and safety (e.g., worker-related injury and ill health)||Water pollution|
|Violations of the right of workers to establish or join a trade union and to bargain collectively||Landuse change|
|Non-compliance with minimum wage laws||Waste|
|Wages do not meet basic needs of workers and their families||Air emissions|
Due diligence is an ongoing process, in which we can identify, mitigate, prevent risks and address their existing and potential adverse impacts (e.g. child labor, discrimination, hazardous chemicals, etc.).
As stated in the "Corporate Governance Statement", PUMA has a functioning Compliance Management System (CMS) to systematically prevent, detect and sanction violations in the areas of corruption, money laundering, conflicts of interest, antitrust law and fraud/embezzlement.
In response to the COVID-19 pandemic, the possibility of future crises and/or upcoming regulations, our vendors are recommended to conduct their due diligence. Our risk assessment process of potential harm to people (human rights & labor and environmental risks) includes:
We prioritize risks based on:
Our mitigation measures include the factory monitoring program, grievance mechanism, supplier scorecard, business integration, goal-setting and internal and external reporting. The effectiveness of our measures is evaluated based on progress and compliance with our policies.
PUMA also adopted ELEVATE intelligence, or EiQ, a comprehensive suite of supply chain analytics, to:
The 10FOR25 targets are linked directly to the four main sustainability-related risks identified in our due diligence process:
The four main sustainability-related risks are reflected in the Risk Management System that PUMA has established to identify and manage material risks or risks that could pose a threat to the company’s objectives at an early stage. The Risk Management function conducts formal interviews with selected risk owners (key function management responsible to identify and address the risks) on a semi-annual basis set to identify, evaluate and report risks. The risk owners of PUMA’s sustainability department review risks within their area of responsibility and report the evaluation and the evolution of countermeasures implemented to mitigate or reduce the potential impact of sustainability-related risks to the Risk Management function.
To mitigate and prevent sustainability risks, PUMA has set the 10FOR25 targets and implemented a due diligence process. PUMA reports internally and publicly (through annual sustainability reports) on the following activities and progress toward our goals 10FOR25:
*Tier 1 manufacturers of PUMA products; Tier 2 manufacturers of materials and components
Net risks as outlined in the CSR Directive Implementation Act (§315c in relation to §289c, section 3, number 3 German Commercial Code (HGB), were not identified in 2021.
Further details on PUMA’s overall risk management can be found in the Risk Management section.
As part of our risk assessment and industry benchmarking, we use the Brand and Retailer Module (BRM) of the Sustainable Apparel Coalition. The Higg Brand & Retail Module (Higg BRM) guides brands and retailers on their sustainability journeys and identifies hotspots and opportunities for improvement along their global value chain. From more sustainable materials sourcing to a product’s end of use, the Higg BRM assesses the life cycle stages for their sustainability coverage. Our Higg BRM scores are externally verified.
Our overall BRM environmental score increased from 74.3% in 2020 to 76.8% in 2021. The social score increased from 76.4% in 2020 to 85.4% in 2021. We significantly improved our social score for logistics and retail operations as well as our end of use score, although this score is still at a low level. Improvements include the payment of a living wage to all PUMA employees globally (including retail and logistics) as well as the introduction of several circularity initiatives, such as our RE:SUEDE and RE:JERSEY programs, swap shops at major offices as well as takeback boxes in selected stores across three continents.