ESRS E1 Climate change

ESRS E1 Climate change

Impact, risk and opportunity management and strategy

Material climate-related impacts, risks and opportunities in relation to strategy and business model (IRO-1, SBM-3)

In collaboration with stakeholders, including the UN Climate Secretariat, and through our long-standing practice of answering major industry benchmarking questionnaires on climate change such as the Carbon Disclosure Project (CDP), we have identified the climate change-related material impacts, risks and opportunities for PUMA, using the same methodology detailed in the General information (IRO-1) section.

In 2024, PUMA engaged in extensive stakeholder consultations to shape its Vision 2030 sustainability targets. Additionally, a DMA, involving our key stakeholders, was conducted in 2023 to identify material topics for our long-term strategy and target setting. Detailed information on stakeholder consultation is provided in the General information (SBM-2) section.

Risk and opportunity assessment

The following section outlines the process used to identify, assess and manage climate-related risks and opportunities. This includes a scenario analysis, risk and opportunity assessment and an analysis of the resilience of our business model and strategy.

Scenario analysis

PUMA used climate-related scenario analysis to evaluate potential physical and transition risks.

To identify physical risks to its own operations, PUMA collaborates with its insurance provider on a physical climate risk assessment. The assessment is based on three time horizons: short term (1 year) mid-term (3 years) and long term (>10 years). The assessment includes the 28 sites with the highest risk of impacting the business (total insured value of over € 50 million) when affected, including PUMA’s headquarters and main distribution centres. It does not include any stores as the loss of a single store does not have a significant financial impact. The assessment uses the climate scenario RCP8.5, projecting climate-related physical hazards for different ranges of radiative forcing reached in 2040. This conservative approach relates to an estimated temperature increase of >4 °C (RCP8.5) by 2100. For mid and long-term projections of climate-related hazards we use the geospatial coordinates of our locations and the NatCat tool from SwissRe. For the short-term horizon, the insurance function is responsible given that related risks are mitigated to insurance markets. Typical assessments applied are site-specific risk-engineering reviews, business interruption impact analyses and NatCat assessments together with the insurance broker and the leading insurer for the property program to validate required insurance limits. A detailed physical risk assessment for supply chain locations is planned for 2025. This is a voluntary action given that PUMA does not have sites within operational control in the upstream supply chain.

Transition risks were identified using the IEA net-zero emissions by 2050 scenario, which outlines a narrow pathway towards a 1.5 °C aligned global warming, and the IEA stated policies scenario, which assumes that stated policies are followed (2.7 °C aligned). The timeframe extends to the year 2040, with intermediate estimates for 2030 and 2035. Most assumptions of the scenario analysis were applicable on a global scale, with some exceptions like carbon pricing or utility prices, which were determined at a regional level (e.g., in the EU).

The climate scenarios used by PUMA are based on plausible and widely used sources, such as the IPCC report and the IEA. The scenarios are aligned with critical climate-related assumptions in PUMA’s financial statement by integrating projected regulatory changes, market shifts, and environmental impacts. This alignment ensures that financial planning and risk assessments account for potential costs and benefits of climate actions, such as investments in renewable energy and energy efficiency. This approach helps PUMA manage financial risks and seize opportunities related to climate change.

Physical risk

Physical climate risk includes chronic and acute risks from extreme weather events, such as storms, floods, heatwaves, droughts, wildfires and flooding, over short-, medium- and long-term periods. Such physical risks are potential threats to PUMA’s own operations or PUMA’s value chain and become more frequent and intense due to climate change. Analysing the occurrence and frequency of these risks helps PUMA identify vulnerabilities in its supply chain, infrastructure, and employee safety, allowing the company to implement strategies to mitigate these risks and ensure business continuity. The table summarises physical risks that were included in PUMA’s identification and assessment process strategies to mitigate these risks and ensure business continuity.

The results of the physical climate risk analysis for our own operations confirm that until 2040, 22 of PUMA’s main sites are at risk of drought, 15 are exposed to risks from heat waves and one from sea level rise. These risks are covered by our insurance policies.

We consider the likelihood of these risks having a significant financial impact on PUMA as low. Temperature rise has been occurring over the last decade, and all major PUMA offices and stores are equipped with air conditioning to ensure appropriate working conditions, even during heat waves. Additionally, PUMA’s major sites (including the one close to the sea) are insured against extreme weather events. This means that even if an event like extreme precipitation occurs and leads to damages to PUMA’s buildings or goods, as happened in 2024 for one warehouse in Poland, these damages are covered by an insurance policy.

Transition risk

Climate-related transition risks can arise in various fields, including policy and law, technology, market and reputation, over short-, medium- and long-term periods. Transition risks become more material in scenarios that include a quick transition to renewable energy and various climate-friendly policies to keep global warming in check. Examples include new regulations like carbon taxes, or the digital product passport as part of the Eco-Design for Sustainable Products Regulation (ESPR). Material transition risks are listed at the beginning of the section and are taken from the TCFD-aligned list of transition events in the table.

Business activities and transition to carbon neutrality require significant efforts in footwear materials, thermal energy and transportation to be compatible with a carbon-neutral economy. Developing new technologies and policies, such as low-carbon materials, scalable thermal energy alternatives and large-scale low carbon fuel usage, is essential to ensure carbon neutrality. This is crucial for meeting our 2030 targets, as innovations and economic shifts in these areas are necessary to achieve our science-based emission reduction targets.

Opportunities

Climate change-related opportunities are usually connected to transitions rather than physical hazards. We screened the transition categories of policy and law, technology, market and reputation for opportunities and included them in impacts, risks and opportunities. The most prominent opportunities are:

• Increasing demand from consumers due to a better adoption of climate regulation and simultaneous climate change mitigation efforts, resulting in low carbon products
• Increased trust from investors
• Increased employee satisfaction due to proper adaptation measures.

Resilience analysis

The resilience analysis is performed twice a year as part of the assessment of climate-related risks and opportunities within our risk management system. It focuses on three key areas of our own operations, our business model (including outsourced production) and our product portfolio, covering the full extent of PUMA’s business. The primary impact areas of our risks include physical risks that affect our entities and supply chain locations, as well as transition risks that influence our business model and product portfolio. The resilience analysis extends until 2030, in line with the timeframe of long-term impacts, risks and opportunities and our science-based GHG emission target.

Resilience of PUMA’s own operations

Many of PUMA’s largest assets are exposed to climate-related physical risks, such as droughts or heatwaves. However, all these assets do not use water on an industrial scale, are equipped with cooling technology and are insured against climate-related hazards. Most of our locations are leased or rented, and for offices remote working possibilities exist, further increasing the resilience of PUMA’s overall business. We will continue to work on climate mitigation and adaptation actions to ensure the resilience of our operations.

Resilience of PUMA’s business model, with outsourced production

PUMA’s business model relies on outsourced manufacturing mainly from six sourcing countries: China, Vietnam, Cambodia, Bangladesh, Indonesia and India. Extreme heat, humidity and frequent extreme weather conditions threaten working conditions, productivity, and infrastructure, leading to business disruptions, higher costs and potential negative publicity. Ensuring suppliers’ financial stability and improving infrastructure reduces disruption risks and enhances supply chain resilience. Climate adaptation measures protect workers and minimise disruptions. Adjusting behaviour and infrastructure creates a resilient supply chain, allowing companies to capitalise on market opportunities. Meeting production targets results in stable revenue and costs, while increased investor confidence positively affects stock values and capital availability.

PUMA engages in business relationships with its core suppliers on a long-term basis. Trusting relationships with suppliers ensure a more stable and reliable supply chain, reducing the risk of disruptions and associated costs. PUMA has set a science-based target implying that core suppliers and the upstream supply chain need to reduce their GHG emissions. PUMA mitigates risks from over-reliance on a few suppliers, which can lead to higher costs, production delays, quality issues, financial difficulties, reputational damage and a loss of trust. Disruption from natural disasters or political instability can halt production and affect supply chain resilience. To address this, we diversify our sourcing model, ensuring suppliers develop capabilities to produce a range of products and source materials from different countries. We are therefore working towards building a resilient supply chain.

Non-core suppliers are partially managed through the Higg Facility Environment Module (FEM), which includes a section on energy and GHG. This aids supplier facilities in setting climate targets, tracking, and reducing energy use and GHG emissions by promoting energy efficiency improvements and renewable energy adoption, thereby mitigating climate risks for non-core suppliers. Non-core suppliers are geographically diverse, allowing PUMA to shift sourcing in case of natural disasters, ensuring a resilient supply chain.

PUMA’s business model also relies on transporting finished goods from the main manufacturing hubs in Asia to customers worldwide. Transporting goods contributes to GHG emissions. To reduce such emissions, PUMA has included the transport of goods in its science-based GHG reduction target and reduced the proportion of transport carried out by air freight, the most carbon-intensive mode of transport. PUMA works with logistic service providers on the use of alternative fuels for marine shipping or road transport.

Therefore, we assume that PUMA’s business model can cope with potential increases in carbon taxes for international transport or the inclusion of international transportation into carbon reduction and offsetting schemes.

Resilience of PUMA’s product portfolio

PUMA’s product portfolio comprises athletic and lifestyle footwear, apparel and accessories. Our products rely on raw materials made from fossil fuels, such as polyester and other synthetic polymers. This reliance could negatively affect PUMA if the price for the fossil raw materials increases due to carbon taxes or restrictions on fossil fuels. To balance this potential negative effect, PUMA has started to use recycled polyester at scale and investing in research and innovation to find recycled or bio-based alternatives.

PUMA’s products do not directly emit GHGs during their use phase. The washing and drying of apparel contribute to GHG emissions if washing and drying machines are not powered by renewable energy. However, given the required global transition to renewable electricity, we do not anticipate any negative effects on the sales of our products based on GHG emissions emitted during the use-phase.

PUMA products may emit GHGs at the end of their useful life, for example when incinerated or during the decomposition of cotton products. Based on product life cycle assessment data, those emissions are relatively low compared to emissions released during manufacturing and the product use phase. These emissions can be avoided when products are recycled into new raw materials. While postconsumer recycling is not yet the current practice for apparel, footwear and accessories products, upcoming regulations in the EU are targeting higher recycling rates in future.

As a result, PUMA can demonstrate sufficient resilience to key transition and physical risks and is capable of adapting its strategy and business model to climate change in the short, medium, and long term. Wherever we see potential gaps, such as the recycling of polymers to reduce dependency on fossil fuels, we have set targets within our sustainability strategy to close those gaps over time.

PUMA’s climate targets and program also help secure access to finance. For example, we use ESG-linked finance mechanisms, where the interest rate is tied to the achievement of our climate goals. These ESG-linked finance mechanisms account for approximately 80 % of PUMA’s total financing volume.

Policies related to climate change mitigation and adaptation (E1-2)

PUMA is dedicated to protecting the environment and climate across its operations, suppliers, and partners. We have published multiple climate-related policies and handbooks including PUMA’s Environmental Policy, PUMA’s Environmental Handbook for Suppliers and PUMA’s Environmental Handbook for Own Entities.

The Management Board is responsible for the approval and implementation of all policies and handbooks covering climate-related commitments and activities. Various departments manage implementation and report progress regularly to the Management Board and leadership team.

The policies endorse internationally recognised environmental and climate conventions and frameworks such as the Ten Principles of the UN Global Compact, the United Nations Paris Agreement, the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, the Fashion Industry Charter for Climate Action and the Fashion Pact.

PUMA’s environmental policies and handbooks are shaped by the interests of key stakeholders, including employees, suppliers, customers, and industry partners. For instance, PUMA engages employees in sustainability initiatives, ensuring they understand and contribute to environmental and climate goals. The company promotes sustainability within its operations and supply chain by using renewable energy and increasing the use of low-carbon materials. Performance criteria linked to clear sustainability targets are included in the remuneration of all leaders globally. The Environmental Policy emphasises working closely with suppliers to meet high environmental standards and improve sustainability practices throughout the supply chain. PUMA considers customer demand for sustainable products, integrating less carbon-intensive materials and practices into its offerings.

All policies and handbooks are publicly shared on our website. Due diligence and progress are also shared in our Annual Reports. This includes governance structures, key partners, and performance indicators like certified material ratios, CO₂ emissions, and renewable energy usage. We also engage with third-party initiatives for objective feedback to improve our practices.

PUMA’s Environmental Policy covers a wide range of topics to ensure comprehensive sustainability practices. Regarding climate, it includes the climate change mitigation actions required to achieve our science-based GHG emission target which is aligned with a maximum of 1.5 °C global warming. Stated actions consist, but are not limited to energy efficiency measures, the adoption of renewable energy sources for PUMA’s own entities, the reduction of GHG emissions in our logistics network and supply chain, and the increased adoption of low carbon materials.

PUMA’s Environmental Handbook for Suppliers and PUMA’s Environmental Handbook for Own Entities provide guidance on how our suppliers and own operations can effectively decrease their climate change impact. This includes, for example, adopting LED lighting, switching to renewable electricity, phasing-out of coal-fired boilers and optimising heating and cooling systems.

Our policies and handbooks are regularly updated. One of the next updates will include climate adaptation actions, which are not currently reflected in our policies and handbooks.

Strategy

Transition plan for climate change mitigation (E1-1)

In 2019, PUMA set its first science-based emission target (SBT) aligned with a well below 2-degree scenario. After surpassing initial goals, PUMA updated targets in 2023 to a 1.5 °C scenario, aiming for a 90% absolute reduction in own operations and a 33% absolute reduction in supply chain emissions by 2030 from the 2017 baseline. Further, we are committed to reaching net zero GHG emissions by 2050 as part of our Fashion Industry Charter for Climate Action engagement.

In 2023, PUMA published its first climate transition plan, detailing the actions and investments needed to meet 2030 targets. The plan is communicated internally for alignment with PUMA’s overall strategy and financial planning. In addition to our SBT, our transition plan also helps us achieve other climate-related targets mentioned in the Metrics and targets section. We will expand our transition plan in 2025 towards achieving net-zero GHG emissions by the latest 2050.

PUMA’s climate transition plan focuses on key levers displayed in Decarbonisation levers' expected reductions until 2030 for Scope 1 and 2 GHG emissions table and emissions below on allocated financial resources. These tables also include the related capital expenditures (CapEx) and operational expenditures (OpEx) related investments. These expenditures are significant because they play a crucial role in achieving our science-based targets and enhancing stakeholder perception, particularly in terms of improved CDP and other ESG ratings, which are closely monitored by our investors, customers, and civil society. Additionally, these investments help minimise potential taxes/penalties from upcoming regulations such as Germany’s Carbon Tax regulation, the EU Corporate Sustainability Due Diligence Directive, and the Carbon Border Adjustment Mechanism. PUMA also collaborates with industry partners to influence policy in favour of renewable energy and ensure sustainable sourcing practices.

PUMA has no significant CapEx for coal, oil, or gas-related economic activities. Instead, PUMA focuses on renewable energy and other sustainability initiatives, such as replacing coal-fired boilers at suppliers and transitioning to low-carbon fuels for transportation.

PUMA’s key assets and products have potential locked-in GHG emissions due to their reliance on existing infrastructure and materials. Existing assets are included in the assessment of GHG emissions and related reduction opportunities. Assets include PUMA’s airplane, leased cars which have not yet been transitioned to zero emission cars and rented buildings which rely on natural gas for heating. Embedded emissions related to relevant assets are included in our Vision 2030 strategy and the transition plan to achieve our GHG emission reduction targets until 2030.

PUMA’s objectives and plans for aligning economic activities with the criteria in Commission Delegated Regulation 2021/2139 consider the key performance indicators requiring disclosure under Article 8 of Regulation (EU) 2020/852. PUMA is not exempted from exclusions for EU Paris-aligned Benchmarks based on the exclusion criteria mentioned in Article 12 of the Paris Agreement.

PUMA’s Climate Transition Plan is integrated into its overall business strategy and financial planning by aligning climate goals with strategic objectives, such as developing a more resilient supply chain. The plan is reviewed and approved by PUMA’s Management Board and the Supervisory Board, ensuring it supports PUMA’s long-term business goals and financial health.

PUMA has made progress towards implementing its transition plan. For our own operations, we have maintained 100% renewable electricity since 2020, increased the percentage of low- or zero-emission vehicles in our car fleet from 35% in 2023 to 45% in 2024, improved energy efficiency through the installation of LED lighting and invested in our own solar PV plants. In 2024, two large scale solar PV plants started operations at the German headquarters in Herzogenaurach and our largest European Distribution centre in Geiselwind, also Germany. The total capacity of the two solar PV plants is 2.5 Mwhpeak.

In our upstream value chain efforts are being made to reduce emissions from the transport of goods by transitioning to more carbon-efficient modes of transport. The percentage of goods transported by airfreight has dropped from 3% in 2019 to less than 1% in 2024.

Additionally, we implement multiple supply chain initiatives. PUMA is working with industry peers on climate action through initiatives like the Fashion Industry Charter for Climate Action and the Fashion Pact. We are also enrolling core suppliers in energy efficiency and renewable energy programmes in our top sourcing regions. In 2022, we identified 21 core suppliers with coal-fired boilers and have been working on their coal-phase-out plans. By the end of 2024, 27 suppliers had agreed to set SBTs, and we launched the Supplier Leadership on Climate Transition programme with Guidehouse, offering capacity building opportunities for suppliers to set and achieve SBTs. 13 suppliers joined this program.

PUMA is also gradually transitioning to materials with a lower carbon footprint, such as recycled polyester.

These steps are part of PUMA’s broader commitment to achieving net-zero emissions by 2050 as established in Regulation (EU) 2021/1119 (European Climate Law) and contribute to global climate goals.

Actions and resources in relation to climate change policies (E1-3)

Own operations

The key actions taken and resources allocated to mitigate Scope 1 and 2 emissions are listed below and align with the decarbonisation levers described in the Metrics and target section. These actions are applicable to our own operations globally, contributing to the achievement of our Scope 1 and 2 climate targets stated in our Environmental Policy and are ongoing until at least 2030.

¹ The resources referring to CapEx are included in the Property, Plant and Equipment and Leases chapters of PUMA's consolidated financial statement. The resources referring to OpEx are included in the Other Operating Income and Expenses chapter of PUMA's consolidated financial statement.

Upstream value chain

For Scope 3 emissions, PUMA is working on reducing emissions from purchased goods, services, and upstream transportation by 33 % by 2030 from a 2017 baseline. We collaborate with our core Tier 1 and Tier 2 suppliers and logistics business partners to implement energy efficiency and renewable energy measures. We aim to phase out coal-fired boilers from our core Tier 1 and Tier 2 suppliers by 2025. We joined the UN’s Coal Phase Out Action Group in 2022 and included a coal-fired boiler question in our new factory onboarding checklist. Reducing our Scope 3 emissions is also supported by the increased use of less carbon-intensive raw materials.

Our key climate actions for Scope 3 Category 1 emissions focus on our upstream value chain, specifically core Tier 1 and Tier 2 factories in China, Vietnam, Bangladesh, Cambodia, Indonesia, Taiwan, Türkiye, Mauritius, Brazil, Pakistan and the Philippines. We actively engage with key affected stakeholders such as our suppliers, by offering training sessions, maintaining communication through regular supplier meetings, launching cleaner production and renewable energy programs, and conducting sustainability scorecard review meetings on a one-to-one basis. These efforts are designed to ensure that our actions effectively contribute to achieving our climate targets.

We aim to persist with our decarbonisation efforts in the coming years by enhancing energy efficiency through cleaner production programs, increasing the percentage of renewable energy used by our suppliers, phasing out coal from our supply chain, sourcing more low-carbon materials and transitioning to low-carbon fuels for transportation. These initiatives have been instrumental in meeting our policy objectives and targets related to climate mitigation. For instance, in 2024, PUMA and stichd together achieved a reduction of 10.2 % in Scope 3 Category 1 and Category 4 emissions, progressing towards our goal of a 33 % reduction by 2030 from the 2017 baseline.

So far, PUMA has focused on climate action from a mitigation approach. We are developing a strategy for climate adaptation, looking at how we can make our assets resilient to different chronic and extreme climate hazards. As projected by the IPCC, examples of actions include installing or upgrading to modern heating, ventilation, and air conditioning, implementing cooling technologies, shading and reflective materials on roofs and walls, maintaining optimal indoor temperatures at factories and setting up emergency plans in case of extreme weather events. We will publish further details on our climate adaptation strategy in 2025.

As outlined in the Transition plan for climate change mitigation (E1-1), our decarbonisation levers incorporate nature-based solutions. These include scaling up the use of low-carbon materials, such as recycled polyester and cotton materials grown with regenerative practices, improving soil health which helps to store carbon in soil, enhancing recycling technologies, and utilising carbon sinks to offset unavoidable long-term emissions. Furthermore, we are committed to source deforestation free bovine leather by 2030, which helps to protect forests that absorb and store large amounts of carbon, helping to mitigate climate change.

In 2024, we participated in the Unlock Programme, an initiative by The Fashion Pact and sustainability consultancy 2050, aimed at decarbonising cotton production and promoting regenerative farming practices in the USA. Through these sustainable farming methods, the cotton sourced from this programme has a lower emission factor compared to conventional cotton. Our involvement in this programme allowed us to eliminate 200 tCO₂e of GHG emissions, associated with cotton sourced from the regions under the Unlock Programme in the USA in 2024.

Throughout the reporting period, we did not observe business disruptions due to effects of material climate impacts, such as extreme weather conditions. Consequently, no specific actions were performed to provide, cooperate in, or support the provision of remedies for such impacts.

We invest in industry collaborations and expert organisations for sustainability and climate action (totalling about € 1 million per year). Allocated resources are reflected in our financial statements, ensuring alignment with overall financial planning. In addition to the € 1 million per year, we have allocated resources for the following decarbonisation levers to mitigate Scope 3 GHG emissions. All financial resources are OpEx incurred annually in our supply chain for memberships, product/material certifications, risk assessments and consulting fees.

¹ The resources referring to CapEx are included in the Property, Plant and Equipment and Leases chapters of PUMA's consolidated financial statement. The resources referring to OpEx are included in the Other Operating Income and Expenses chapter of PUMA's consolidated financial statement.

In 2022, we surveyed our top 20 suppliers on climate investments and recommended setting science-based targets. In 2024, we reassessed 26 top suppliers, representing majority of the business volumes. 22 suppliers made adequate investments in energy efficiency and renewable energy, while four need additional investments. We plan to engage these suppliers to improve their climate strategies. Three suppliers have approved science-based targets, 10 are setting them, and three are working on science-aligned targets through Cascale’s Manufacturer Climate Action Program. The remaining 10 are asked to set climate goals within the next two years.

We are currently exploring different sustainable financing options for our suppliers to aid in their decarbonisation efforts. However, we have not yet finalised any specific scheme or program.

Metrics and targets (MDR-M, MDR-T, E1-4)

PUMA's climate targets are closely aligned with our Environmental Policy and the SDGs, specifically SDG 13 (Climate Action). In PUMA’s Environmental Policy, we refer to our science-based climate action target and the actions being taken to stay within a maximum of a 1.5 °C global warming scenario to mitigate the effects of climate change. We have established time bound and outcome-oriented targets and specific metrics to measure progress against our policy objectives and targets. The purpose of our climate targets such as those related to reducing GHG emissions and specific targets for renewable energy, is to manage the impacts, risks and opportunities detailed in the General information (IRO-1) section.

Our current climate targets are established as part of the 10FOR25 sustainability strategy and science-based targets. ‘Science-based’ means that there is conclusive scientific evidence that our GHG reduction pathway is sufficient (when applied globally) to support staying below a 1.5 °C temperature increase until 2100. For our 10FOR25 targets, introduced in 2019, we conducted an extensive materiality assessment and stakeholder dialogue to identify 10 key areas for improving sustainability performance, with climate considered a key pillar. This strategy includes the 10FOR25 target cycle until 2025 which remains unchanged from the previous year. All of PUMA’s climate targets apply globally, covering all regions in which we operate and where our suppliers are located. With Vision 2030, published in November 2024, we have elevated our 10FOR25 goals to achieve more ambitious targets by 2030 following a double materiality assessment and stakeholder dialogue in 2024. Our methodology for defining these targets includes assumptions based on supplier data, current scientific data and industry best practices, ensuring that our goals are both ambitious and achievable.

PUMA 1.5 °C aligned science-based GHG emission reduction target

• Reduce absolute Scope 1 and 2 GHG emissions (market-based) by 90% by 2030 compared to the base year of 2017 (baseline value: 47,707 tCO₂) (own operations, global)
• In 2024, 86% reduction towards baseline
• Reduce absolute GHG emissions from purchased goods and services and upstream transportation and distribution by 33% by 2030 from a 2017 base year (baseline value: 1,609,916 tCO₂eq, the target boundary covers emissions and removals related to land use for bioenergy feedstocks) (upstream, global)
• In 2024, PUMA and stichd together achieved 10.2% reduction in absolute GHG emissions compared to 2017 from purchased goods and services and upstream transportation and distribution

• Continue achieving annual sourcing of 100% renewable electricity through 2030 at PUMA sites (own operations, global)
• In 2024, 100% renewable electricity ensured through green tariffs and RECs purchase.

Our GHG baseline and targets are developed and validated by SBTi, ensuring they are representative and consistent with GHG inventory boundaries. Our climate targets align with the UN’s Fashion Industry Charter for Climate Action. In developing the climate roadmap to achieve our SBT, we have projected net sales through 2030 to estimate GHG emissions under a business-as-usual scenario. As part of our decarbonisation strategy, we have considered the potential integration of emerging technologies and initiatives, such as solar thermal and green hydrogen, within our supply chain. We have also explored innovations in low-carbon material development for our products. Additionally, we have evaluated the policy landscapes in key sourcing countries and considered the adoption of climate-friendly policies to facilitate the widespread use of renewable energy. Currently, our targets focus on mitigation, without using GHG removals or carbon credits. We ensured our base year and baseline values for SBTs are representative in terms of the activities covered and the influences from external factors through validation by SBTi. Furthermore, the base year of 2017 was a normal year, without any temperature anomalies which could have influenced energy consumption and related GHG emissions.

Vision 2030 Targets (Baseline year 2025)

• Car fleet: more than 60% of cars moved to zero- or low-emission vehicles where charging infrastructure permits (entity-specific metric, own operations, global)
• Airplane: no airplane or use biofuels (entity-specific metric, own operations, regional)
• Heating: move remaining natural gas heating to biogas, hydrogen or electric heating, at least 50% (own operations, global)
• Continue 100% renewable electricity (own operations, global)
• Over 2 MWp own solar capacity (own operations, global)
• 75% renewable content district heating at Headquarters (own operations, regional)
• 40% renewable energy at core factories (upstream, global)
• 40% GHG emission reduction (Scope 1 and 2) at core factories (upstream, global)
• No coal-fired boiler at core factories (upstream, global)
• 100% recycled polyester fabric (upstream, global)
• 30% Textile-to-Textile Recycled Polyester for apparel (upstream, global)
• 20% recycled cotton for apparel (upstream, global)

10FOR25 Targets (Baseline year 2020)

• 100% of PUMA’s own entities use renewable electricity (own operations, global)
• In 2024, PUMA kept 100% renewable electricity for its own entities
• Expand the use of renewable energy at PUMA’s core suppliers to 25 % (upstream, global)
• In 2024, our core suppliers sourced 26.7% of their energy from renewable sources

• Phase out coal-fired boilers from core suppliers by 2025 (upstream, global)
• Five factories have phased out coal, six have partially replaced it, and four are planning transitions. Three factories will extend their phase-out to 2030.

PUMA sustainability targets, which include climate targets, are communicated to suppliers during regional supplier meetings. Progress against the targets and the effectiveness of policies and climate action are tracked through the preparation of environmental performance scorecards for each core Tier 1 and Tier 2 supplier at a Group level, with KPIs broken down at a factory level. The scorecards visualise each supplier’s progress towards our 10FOR25 targets. We followed up with one-to-one meetings to review the 2023 Environmental KPIs for 64 suppliers and discuss their 2024 plans. We also addressed the need for some factories to participate in cleaner production and renewable energy programmes. Climate-related KPIs in the scorecard include percentage of renewable energy usage and absolute GHG emissions.

In 2024, PUMA engaged in extensive stakeholder consultations to shape its 2030 sustainability targets. Detailed information on stakeholder consultation is provided in the chapter General information (SBM-2).

PUMA aligns its reporting on climate-related metrics with recognised standards, including the GHG Protocol. Our climate targets also include absolute carbon reductions, renewable energy procurement and the manufacturing of products made from recycled and/or certified materials.

Our science-based target was approved in 2023 and remained unchanged during the reporting period Therefore, additional requirements such as changes in corresponding metrics, underlying measurement methodologies, significant assumptions, limitations, sources, and data collection processes within the defined time horizon, are not applicable.

¹ Emission data shown is derived from GHG emission table in chapter E1-6. All assumptions for Scope 1 and 2 GHG emissions presented in the footnotes of this table also apply here.

¹ 2030 is the target year for our science-based target. A transition plan to reach net-zero GHG emissions by 2050 will be developed in 2025.

² Excepted emission reduction until 2030 is defined as the expected annual reduction in the year 2030 from the respective decarbonization lever.

In 2024, we continued assessing Scope 3 emissions from our supply chain with the expert company Sphera, following the GHG Protocol. This included emissions beyond Tier 1, covering Tier 2 and Tier 3 suppliers. Our absolute Scope 3 emissions from purchased goods and services have decreased since 2017, despite increased material consumption, due to energy efficiency and renewable electricity use. The main sources of these emissions are raw materials and energy used by Tier 1, 2, and 3 suppliers. Details are available in PUMA’s Climate Transition Plan.

In 2024, we started calculating GHG emissions for our subsidiary company, stichd, using the same methodology and consultant (Sphera) as for PUMA. However, while PUMA's Tier 2 GHG emissions are calculated from primary data, stichd's Tier 2 emissions are estimated based on Tier 1 product sourcing data and emission factors from the GaBi database by Sphera. The stichd scope 3 category 1 emissions for 2017 were estimated based on GHG intensity relative to sales turnover.

We were not able to reduce our Scope 3 Category 4 emissions from transport of goods in 2024. We had seen a reduction of airfreight from 3% to less than 1% in 2023 and partially switched to biofuels for maritime shipping. However, as the cost for shipments with biofuels is significantly higher than for conventional shipments, and we are on track to meet our overall Scope 3 targets, we temporarily reduced the amount of biofuels in 2024 until those become more cost effective. In addition, during the year 2024 several large sports events (Olympics, Football Euro Cup) led to a rebound of airfreight compared to 2023. The results are presented in the tables below.

¹ GHG calculations for scope 3 category 1 are based on energy data collected from January to October 2024 at PUMA core Tier 1 and Tier 2 factories and stichd core Tier 1 factories, excluding PUMA United. Data for November and December 2024 are estimated from this period to provide full-year data. The core supplier factories include 51 Tier 1 factories (apparel, footwear and accessories), 40 core Tier 2 factories (leather, PU, and textiles), and 28 stichd core Tier 1 factories (apparel and accessories). stichd's Tier 2 emissions are estimated based on Tier 1 product sourcing data and emission factors from the GaBi database by Sphera.

² Scope 3 category 1 GHG emissions for PUMA and stichd are calculated based on energy consumption data collected from core factories, extrapolated to cover non-core factories, based on 2023 business volume.

³ Scope 3 category 1 estimation includes GHG emissions associated with goods and services purchased by PUMA and stichd from its suppliers related to products and associated packaging. This excludes emissions associated with other goods and services acquired by stichd offices, stores, and warehouses.

By the end of 2024, PUMA had already reduced its combined Scope 3 emissions from purchased goods by 17% compared to a baseline of 2017. In 2024, our core suppliers sourced 26.7% of their energy from renewable sources from the baseline value of 0.8% in 2020.

We are committed to phasing out coal-fired boilers from our core Tier 1 and Tier 2 suppliers by 2025. In 2022, we identified 21 suppliers with coal-fired boilers, reducing to 15 by 2024 due to revisions in the core factory list. Five factories have phased out coal, six have partially replaced it, and four are planning transitions. Due to challenges, three factories will extend their phase-out to 2030. We continue to track progress and collaborate with the UN’s Fashion Charter to expedite this transition. Since July 2022, new factories are screened to ensure they do not use coal-fired boilers.

All financial resources are OpEx incurred annually in our supply chain for memberships, product certifications, risk assessments, impact incentives, and consulting fees.

¹ 2030 is the target year for our science-based target. A transition plan to reach net-zero GHG emissions by 2050 will be developed in 2025.

² Excepted emission reduction until 2030 is defined as the expected annual reduction in the year 2030 from the respective decarbonization lever.

We have not yet established specific climate adaptation targets. However, we are in the process of developing a comprehensive strategy, which is planned for release in 2025. Following the release of this strategy, we will set our adaptation targets accordingly.

Energy consumption and mix (E1-5)

Energy is required to power PUMA’s own offices, stores and warehouses, our car fleet and to enable the production and transport of goods. PUMA uses energy from electricity, natural gas and district heating in its own operations, and additional types of fuel (e.g., coal, biomass) in the factories in its supply chain. PUMA’s car fleet uses electricity, hydrogen, diesel and gasoline. PUMA’s airplane uses kerosene.

PUMA reports energy consumed from all processes in our own operations in line with our Scope 1 and 2 GHG reporting boundary. PUMA consumes fuels as feedstocks for electricity generation only in generators for back up electricity generation in areas with electricity outages (South Africa and Ukraine). We report all energy-related information as final energy consumption and take a conservative approach when splitting energy sources between renewable and non-renewable sources. We use grid electricity mixes from IEA (2019) in line with our market-based Scope 2 GHG emission reporting.

¹ Data on energy consumption is collected using primary data and estimations. Where primary data is available and does not cover the full reporting year, the data is extrapolated to 12 months. Where primary data is not available, the data is either estimated based on sites with similar properties or on average data.

² Energy consumption is not validated by an external body other than the auditors of this statement.

³ Fuel consumption from crude oil and petroleum products include light fuel oil consumed in our location for heating purposes, gasoline and diesel consumed by our car fleet and kerosene consumed by our air plane.

⁴ Green tariff is defined as 100 % renewable electricity purchased from an electricity provider.

⁵ Energy Attribute Certificates are sourced from various standards (e.g., I-REC). Year of electricity generation is 2024. Where possible, certificates are issued domestically. If domestic sourcing is not possible, a proxy solution is used.

¹ Net revenue relates to overall net revenue which can be found in the Sales chapter in PUMA's consolidated financial statement.

² PUMA's business operations are allocated to section G of the NACE economic activities classification (Wholesale and retail trade) which is considered a high-climate impact sector.

Gross scopes 1, 2, 3 and total GHG emissions (E1-6)

The emissions shown below are applicable to the PUMA Group. As PUMA owns a 100% or majority stake in all its subsidiaries, our emission reporting covers all subsidiaries. Exceptions are provided in the footnotes. This reporting scope of our GHG emissions, including those from our upstream and downstream value chain, remained unchanged during the reporting period.

¹ PUMA’s GHG reporting is in line with the GHG Protocol Corporate Accounting Standard and Reporting standard (version 2004 and 2015). Fugitive emissions (emissions from unintentional releases or leaks) are not material to PUMA and therefore not inlcuded in Scope 1 emissions.

² PUMA applies emission factors from internationally recognised sources. Emission factors from International Energy Agency (IEA) (2019) are used for emissions caused by electricity consumption. Emission and conversion factors from DEFRA (2020) are used more stationary and mobile fuel combustion. Emission factors from Sphera's GaBi database (2024) are used for emissions from materials, waste and end-of-life. All emission factors consider all GHGs (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃).

³ Methodological changes between 2017 and 2023 have influenced results. GHG emissions are not validated by an external body other than the auditors of this statement.

⁴ Data on Scope 1, Scope 2 and Scope 3 Category 3, 5, 6, 8, 12 and 14 GHG emissions is collected using primary data from own operations and estimations. Where primary data is available and does not cover the full reporting year, the data is extrapolated to 12 months. Where primary data is not available, the data is either estimated based on sites with similar properties or on average data.

⁵ We do not use the EU emission trading scheme (EU-ETS).

⁶ A location-based method reflects the average emissions intensity of grids on which energy consumption occurs.

⁷ A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. PUMA has purchased such Energy Attribute Certificates in 2024 (see energy consumption table).

⁸ Scope 3 Category 1 emissions were calculated with the help of lifecycle expert company Sphera. They conducted a comprehensive assessment of our supply chain emissions beyond Tier 1 manufacturing of products, including Tier 2 manufacturing of fabrics and components, and estimated emissions from Tier 3 suppliers and material production using emission factors from their LCA database, known as the GaBi database. Tier 1 and Tier 2 emissions are calculated using the actual energy consumption data from 2024 for current core Tier 1 and Tier 2 facilities, and for facilities that are no longer core in 2024, the emissions are estimated based on their 2023 energy consumption and business volume. Based on 2023 business volume, the business coverage of this emission calculation is 84 % for Tier 1 and 61 % for Tier 2 and we extrapolate this data to cover all Tier 1 and Tier 2 supplier factories. Tier 3 emissions are estimated by Sphera using its GaBi database. GHG calculations for scope 3 category 1 are based on energy data collected from January to October 2024 at PUMA core Tier 1 and Tier 2 factories. Data for November and December 2024 are estimated from this period to provide full-year data. The core supplier factories include 51 Tier 1 factories (apparel, footwear and accessories), 40 core Tier 2 factories (leather, PU and textiles).

⁹ Scope 3 categories listed as n/a are not considered material to our total GHG emissions.

¹⁰ Data on Scope 3 Category 4 is based on inbound and outbound transportation data and uses emission factors from EcoTransIT. All transportation to customers is considered to be paid by PUMA and therefore included in Category 4 instead of Category 9.

¹¹ Data on Scope 3 Category 7 is based on a global survey of employee commuting habits conducted in 2022 and total number of employees.

¹² PUMA does not cause any direct use phase emissions. PUMA causes indirect use phase emissions through the washing of its products. As the reporting of indirect use phase emissions is optional under GHG protocol, we report this category as n/a.

¹ Net revenue relates to overall net revenue which can be found in the Sales chapter in PUMA's consolidated financial statement.

² GHG intensity per net revenue is not validated by an external body other than the auditors of this statement.

The Scope 3 Category 1 emissions mentioned above encompass GHG emissions from PUMA and Cobra but exclude stichd due to unavailability of 2023 data. However, stichd’s Scope 3 Category 1 emissions for 2024 are included in the table on Scope 3 GHG emissions targets. Both stichd and Cobra are wholly owned subsidiaries of PUMA, and their GHG emissions are included in PUMA’s approved science-based target. However, the Scope 3 emissions from PUMA United, a joint venture between PUMA and United Legwear, are excluded from the 2024 reporting. The products sold by PUMA United are manufactured, transported, and stored by United Legwear and its suppliers. Consequently, the Scope 3 Category 1 and Category 4 emissions from goods sold by PUMA United are not included. Additionally, emissions from PUMA United are less than 5% of total Scope 3 GHG emissions and therefore are excluded from the scope of the approved science-based target.

Our absolute Scope 3 emissions from purchased goods and services have decreased by 17% from 2017 to 2024, despite a 44.6% increase in material consumption and a rise in annual sales turnover by 113.2% during the same period. This overall decrease is due to our efforts in supply chain energy efficiency, phasing out coal, and increasing share of renewable energy and lower carbon-intensive materials. For a more accurate calculation, in 2024, we used updated emission factors for key materials and tested heating values for remaining coal-using factories.

The 18% increase in GHG emissions from 2023 is primarily due to two factors: improved economic condition resulting in a 31.4% rise in material consumption and a 21.7% rise in volume of products shipped and extrapolation to calculate emissions in Tier 2, our largest GHG contributor. In 2024, our material strategy was still under development, which affected our core Tier 2 factories’ list and resulted in a lower percentage of our business volume being covered. To calculate GHG emission for Tier 2, we used energy consumption data from core Tier 2 factories covering 60.5% of our business volume in 2023 and extrapolated it to cover all Tier 2, as compared to 80 % business volume in previous years. ​With higher emissions from increased energy consumption and lower business coverage at core Tier 2 facilities, the resulting calculation using the extrapolation method increased significantly. This highlights the importance of comprehensive data coverage to ensure consistent emissions reporting.

This increase underscores the need to further strengthen decarbonisation efforts in our supply chain as our business grows. In 2024, we set internal GHG reduction goals by tier and country for our suppliers, along with lower carbon-intensive material targets for 2030. These measures will accelerate decarbonisation efforts and help us achieve our SBT by 2030.

In 2024, PUMA calculated its biogenic emissions to understand the GHG emissions from biomass combustion by our suppliers as some phased out coal and primarily used biomass. Due to the carbon captured during its lifecycle, biomass can be considered a low-carbon transition energy source, making it a readily available alternative for producing hot water and steam, substituting fossil fuels like coal, oil, or natural gas. Biogenic emissions occur when carbon dioxide (CO₂), is released during the combustion of organic materials such as biomass. These emissions are considered temporary because they are part of the natural carbon cycle; the CO₂ released is eventually reabsorbed by new plant growth. This results in a comparatively lower climate impact than fossil fuels, as CO₂ from fossil fuel combustion has been stored underground for millions of years, adding significant amounts of CO₂ to the atmosphere. Other GHGs such as methane (CH₄) and nitrous oxide (N₂O) from combustion of biomass, and GHG emissions from processing and transporting biomass are included in Scope 3 category 1 emissions.

The results indicate that biogenic emissions mainly come from biomass consumption by Tier 2 factories (97.1%), while Tier 1 factories contribute only 2.9%. We found that biogenic emissions account for 8.8% of PUMA's total Scope 3 Category 1 emissions. However, while biomass represents an alternative transition solution for phasing out fossil fuels, its production, transportation and utilisation can also generate direct and indirect negative environmental and social impacts, such as deforestation, air pollution from biomass combustion, and competing uses between food and energy purposes.

We are committed to ensuring our suppliers use more sustainable and renewable biomass. We will promote available guidelines such as the Sustainable Biomass Guidelines & Risk Assessment Tool published by USAID. We will also engage further within and across industries to identify and implement scalable alternatives for thermal energy.

¹ Biogenic emission is calculated based on biomass consumption from core factories, extrapolated to cover non-core factories, based on 2023 business volume.

In 2024, we calculated GHG emissions from our Tier 1 and Tier 2 factories by country to identify priorities and policy roadblocks in our decarbonisation efforts. The results show that the highest emissions come from Vietnam (46.2%), followed by China (19.8%) and Bangladesh (10.8%).

There are country-specific risks and opportunities related to our decarbonisation efforts. For instance, breakthroughs in Vietnam’s direct power purchase agreement (DPPA) regulation and China’s new sustainability reporting requirements present faster decarbonisation opportunities. Conversely, renewable energy challenges and political issues in Bangladesh pose risks to our progress. This country-wise GHG distribution serves as a guide for focusing our efforts on public advocacy, engaging with local stakeholders and suppliers, and meeting our SBTs.

¹ GHG calculation is done based on energy consumption from core factories in these countries, extrapolated to cover non-core factories, based 2023 business volume in receptive countries.

¹ GHG emissions are calculated based on energy consumption from core factories of PUMA (including Cobra), extrapolated to cover non-core factories, based on 2023 business volume of respective product divisions.

GHG removals and GHG mitigation projects financed through carbon credits (E1-7)

We plan to use GHG offsets and removals to neutralise 5-10% of residual emissions on the way to achieving our net-zero target in 2050. We are currently working on a more detailed strategy to meet that goal.

We do not currently use any GHG removal or storage methods in our value chain, nor do we finance any reductions or removals from climate change mitigation projects outside our value chain through carbon credits. As a result, these requirements are not material to PUMA.

Internal carbon pricing (E1-8)

PUMA uses the social cost of carbon as a shadow price for calculating the Environmental Profit and Loss (EP&L) account. The price of 73.4 €/ton of CO₂ was determined when setting up the EP&L. The results of the EP&L are used to inform PUMA’s sustainability strategy. However, this price has not been used beyond the EP&L calculation so far.‎