Most Material Aspects

PUMA performed a formal materiality analysis in 2018 – 2019 with the help of expert consultancy BSR. The methodology, list of consulted stakeholders, and results were reviewed and approved by PUMA’s Managing Directors. Materiality assessment results are also considered in the risk management process. Our risk management function assesses our most material topics and the risks related to those topics in collaboration with the risk owners. The 2019 materiality assessment formed the basis for our existing PUMA FOREVER. BETTER. Sustainability Strategy and 10FOR25 targets, as well as the structure of this 2023 report, and is outlined in the graph below. Further details on the methodology can be found in PUMA’s 2022 Annual Report.

↗ G.04 PUMA’s Most Material Aspects (2018 – 2023)

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DOUBLE MATERIALITY ANALYSIS – 2024 AND BEYOND

In 2023, PUMA conducted an updated materiality analysis based on the principle of double materiality as requested by the Corporate Sustainability Reporting Directive (CSRD). The methodology, list of consulted stakeholders, and results were reviewed and approved by PUMA’s Managing Directors (CEO, Chief Financial Officer, Chief Product Officer and Chief Sourcing Officer). PUMA’s CEO, the Chair of the Supervisory Board, and a Workers Council representative participated in the materiality assessment.

The 2023 materiality assessment was conducted by the expert consultancy Radley Yeldar and included:

  • A horizon scanning stage, including peer benchmark assessment, legislation, sustainability frameworks and ratings, and media screening
  • Development of CSRD-compliant impact assessment criteria
  • Stakeholders interviews with 32 participants, including 16 PUMA and 16 external stakeholders as well as an online survey (37 responses)
  • Out of the interviews, eight in-depth interviews for financial impact were conducted, including investor and lender views
  • Results validation meetings between PUMA’s Sustainability Team and Radley Yeldar
  • Managing Directors‘ approval

A total of 25 sustainability topics were selected after the horizon scanning stage to be evaluated by stakeholders. Seven topics were identified by our stakeholders as being financially material to PUMA.

Social topics:

  • Forced and Child Labor in the supply chain 
  • Gender Equity in the supply chain 
  • Worker Wages in the supply chain 
  • Labor Conditions in the supply chain 
  • Employee engagement and development of own workforce

Other topics:

  • Circular Design and Production
  • Supply Chain Traceability and Management

Seven topics were assessed to have a significant outward impact.

Social topics:

  • Worker Wages in the supply chain 
  • Labor Conditions in the supply chain 
  • Diversity, Equity, and Inclusion of own workforce 
  • Employee Engagement and Development of own workforce 

Environmental topics:

  • Water Use in the supply chain 
  • Biodiversity, Land Use and Deforestation in the supply chain 
  • Climate Actions in the value chain

Notably, Labor Conditions, Worker Wages, and Employee Engagement and Development passed both the financial and outward impact threshold for materiality. All eleven topics, targets and achievements, identified as material (from a financial and outward impact perspective) are already included in this report. Going forward, we will transition from our 10FOR25 targets toward our 2030 strategy, which will be based on the new materiality assessment and the outcome of our stakeholder dialogue in 2024.

↗ G.05 PUMA’s DOUBLE MATERIALITY MATRIX

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↗ G.06 PUMA’s 2025 SUSTAINABILITY TARGETS

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*SDG: United Nations Sustainable Development Goals

↗ T.02 Graphic 17PUMA 10FOR25 SUSTAINABILITY TARGETS PERFORMANCE SUMMARY1

Not started  In progress  On track  Achieved

Target area

Targets for 2025

Performance 2023

Status

Graphic 1809516279

Target 1: Train 100,000 direct and indirect staff members on women’s empowerment

222,933 factory workers and 3,727 PUMA employees trained

Graphic 3

01

Target 2: Map subcontractors and Tier 2 suppliers for Human Rights risks

Tier 1 subcontractors mapped
Tier 2 mapping completed (since 2022)

Graphic 2

Human Rights

Target 3: 25,000 hours of global community engagement per year

57,000 hours

Graphic 4

Graphic 1809516280

Target 1: Zero fatal accidents (PUMA and suppliers)

Zero fatal accidents at PUMA
1 fatal accident at suppliers

Graphic 437763657

02

Target 2: Reduce accident rate to 0.5 (PUMA and suppliers)

0.46 at PUMA
0.2 injury rate at PUMA suppliers

Graphic 10

Health and Safety

Target 3: Building safety policy operational in all high-risk countries

ACCORD Bangladesh: Progress rate 94%
Signed ACCORD Pakistan
Building safety assessments in 35 factories in Indonesia, India, Bangladesh and Pakistan

Graphic 23

Graphic 1809516281

Target 1: Ensure 100% of PUMA products are safe to use

No product recall from the market

Graphic 6

03

Target 2: Maintain RSL compliance rate above 90%*

6,130 tests with RSL compliance rate at 98.7%

Graphic 12

Chemicals

Target 3: Reduce organic solvent usage to under 10 gr/pair

VOC index at 12.5 g/pair

Graphic 20

Graphic 1809516282

Target 1: 90% compliance with ZDHC Wastewater Guidelines

Conventional parameters: 99%
Restricted chemicals: 98%
Heavy metals: 99%

Graphic 14

04

Target 2: 90% compliance with ZDHC Air Emissions Guidelines

Our core Tier 1 and Tier 2 follow local regulation
Joined ZDHC pilot

*

Water and Air

Target 3: 15% water reduction per pair or piece based on 2020 baseline

Textile: -4.9% per ton
Leather: +11.7% per square meter
Apparel: +9.4% per piece
Footwear: -21.5% per pair

Graphic 19

Graphic 1809516284

Target 1: Align PUMA’s climate target with 1.5 degrees global warming scenario

SBTi approved our new 1.5 degree aligned target for absolute GHG emission reduction: Scope 1 and 2 by 90%, Scope 3 by 33% in 2030. Our first 2019 SBT achieved in 2023.

Graphic 437763658

05

Target 2: 100% renewable electricity for PUMA entities

100% renewable electricity used for PUMA entities (including RECs purchase)

Graphic 22

Climate

Target 3: 25% renewable energy for core suppliers

23.1% for Tier 1 (finished goods)
21.7% for Tier 2 (materials)
(including RECs purchase)

Graphic 50

Graphic 1809516285

Target 1: Eliminate plastic bags from owned and operated PUMA stores

As of 1 January 2023, plastic bags are no longer used in PUMA’s owned and operated stores

Graphic 39

06

Target 2: Support scientific research on microfibres

Signed 2030 commitment of microfiber consortium, 12 shedding tests conducted

Graphic 8

Plastics and the Oceans

Target 3: Research biodegradable plastics options for products

RE:SUEDE experiment as a test for biodegradability completed and results publicly shared

Graphic 11

Graphic 1809516286

Target 1: Establish take-back schemes in all major markets

Take-back schemes established in at least one country in each of Americas (the USA), Europe (Switzerland) and Asia (Australia)

Graphic 15

07

Target 2: Reduce production waste to landfills by at least 50% compared to 2020

64.7% reduction of waste to landfill per footwear pair
87.4% reduction of waste to landfill per apparel piece

Graphic 18

Circularity

Target 3: Develop recycled material options for cotton, leather and rubber

Recycled cotton used at scale
Recycled rubber and reconstituted leather used in selected collections

Graphic 40

Graphic 1809516287

Target 1: Procure 100% cotton, polyester, leather and down from certified sources

99.2% cotton
85% polyester
99.7% leather
100% down

Graphic 52

08

Target 2: Increase recycled polyester use to 75% (apparel & accessories)

64.9% recycled polyester used for apparel and accessories

Graphic 60

Products

Target 3: 90% of apparel and accessories classified as more sustainable
90% of all footwear contains at least one more sustainable component

87% apparel volume
40% accessories volume
93% footwear volume

Graphic 1809516262

Graphic 65

Target 1: Fair wage assessments for the top five sourcing countries

Five out of five assessments completed (Bangladesh, Cambodia, Indonesia, Vietnam, China)

Graphic 16

09

Target 2: Effective and democratically elected worker representatives at all core suppliers

66% core Tier 1 factories have elected worker representatives

Graphic 437763659

Fair Income

Target 3: Ensure bank transfer payments for all core suppliers

100% core Tier 1 and Tier 2 suppliers use digital payment
100% of workers are paid digitally in core factories

Graphic 25

Graphic 65

Target 1: Support setting up a biodiversity SBT

Sponsored a biodiversity landscape analysis report with Textile Exchange and Fashion Pact

Graphic 21

10

Target 2: Procure 100% cotton, leather, and viscose from certified sources

99.2% cotton
99.7% leather
84% viscose

Graphic 53

Biodiversity

Target 3: Zero use of exotic skins or hides

Phased out the usage of kangaroo leather during 2023
No exotic skins or hides in use

Graphic 41

*ZDHC air emission guidelines have not been yet released at the end of 2023. We have participated in a pilot in collaboration with ZDHC to test the draft standards.

1REC: Renewable Energy Attribute Certificates, RSL: Restricted Substances List, SBT: Science-Based Target, SLCP: Social and Labor Convergence Programme, Tier 1 (T1) suppliers: Supplier of finished goods, Tier 2 (T2) supplier: Supplier of materials or components, Tier 3 (T3) supplier: Supplier of yarn, hides, etc., VOC: Volatile Organic Compound, ZDHC: Zero Discharge of Hazardous Chemicals