ESRS E4 Biodiversity and ecosystems

ESRS E4 Biodiversity and ecosystems

impact, risk and opportunity Management and strategy

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

Biodiversity and ecosystems are closely connected to other environmental matters. The main direct drivers of biodiversity and ecosystem change are climate change, pollution, land-use change, freshwater-use change, sea-use change, direct exploitation of organisms and invasive alien species. These drivers are covered in this section, except for climate change covered in the ESRS E1 Climate change, pollution covered in the ESRS E2 Pollution and water covered in the ESRS E3 Water and marine resources sections.

In 2024, PUMA engaged in extensive stakeholder consultations to shape its 2030 sustainability targets, as explained in the General information (SBM-2) section. Additionally, a double materiality assessment was conducted in 2024 to prioritise key sustainability issues for our long-term strategy and identify material topics for target setting, further explained in the General information (IRO-1) section.

We do not specify whether a biodiversity or ecosystem-related risk is a physical risk or a transition nature risk.

The way biodiversity and ecosystem impacts, dependencies, risks and opportunities originate from and trigger adaptation of our strategy and business model has been described in the table above. PUMA operates in the textile and footwear industry and is therefore not at risk of systemic risks caused by spillover effects from other industries. Systemic risks in relation to natural tipping points have not been assessed.

Consultations with affected communities on sustainability assessments of shared biological resources and ecosystems have not been conducted, neither for the materiality assessment. We have yet to assess the impact of specific sites or commodities on these communities and how to avoid negative effects on priority ecosystem services. This will be part of our target-setting process for Science-Based Target for Nature (SBTN) starting in 2026.

PUMA values stakeholder feedback and consulted external stakeholders and core suppliers on sustainability goals. In December 2023, PUMA finalised its CSO engagement policy and mapped 93 CSOs in key sourcing countries, focusing on environmental issues. A CSO engagement plan will be implemented from 2025 onwards.

Own operations

PUMA conducted a location-specific risk assessment for its own operations, using multiple tools. We used an online tool from the Integrated Biodiversity Assessment Tool to map our offices, warehouses and one industrial site with Natura 2000 sites, UNESCO World Heritage sites and Key Biodiversity Areas (KBAs). Stores were excluded from this assessment, as these are always located in urban areas with no impact on the biodiversity in its vicinity. We identified that 11 of our locations are located within one kilometre of a Natura 2000 site or KBA. However, there are no impacts on biodiversity in these areas as the impact of our locations is limited to their spatial boundary.

We also used the WWF biodiversity risk filter tool. Here, none of our global sites has a very high-risk rating for the categories ‘Protected/Conserved Areas’ and ‘KBAs’ (score between 4.2 and 5 on a scale from 1 to 5). This confirms our own assessment where we survey whether sites are in protected areas as part of our environmental reporting campaign and have not identified any sites in protected or conserved areas. There is one site in South Africa next to a protected area with a rare plant species, Renosterveld Fynbos. This office location is fenced off from the protected area, ruling out any impact on these plants.

PUMA’s own operations in or near biodiversity-sensitive areas are limited to offices, stores or warehouses, which have minimal impact on nature. Therefore, no activities negatively affecting biodiversity sensitive areas have been identified. We also did not identify any material negative impacts regarding land degradation, desertification, soil sealing or threatened species.

Although mitigation measures are voluntary, we offer additional habitats for insects and local species through green roofs, wildflower meadows and beehives at our headquarters in Herzogenaurach and the German central distribution centre in Geiselwind.

Policies related to biodiversity and ecosystems (E4-2)

In 2021, we published the PUMA Biodiversity and Forest Protection Policy. The PUMA Management Board is responsible for the approval and implementation of the policy. It covers both our operations and upstream value chain globally and is monitored through metrics and targets. These policies are available for download on our website for any affected or potentially affected stakeholders.

The PUMA Biodiversity and Forest Protection Policy aims to contribute to SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 14 (Life Below Water) and SDG 15 (Life on Land). We engaged with Canopy, a non-profit organisation with the mission to protect the world's critical forests and species, who helped us to develop our forest protection policy, which includes commitments to:

• Support the development of science-based targets on biodiversity and implement of these targets within the apparel and footwear sector as part of our membership with the Fashion Pact
• Reduce the impact on biodiversity through different actions and report on sourced materials, e.g. viscose (as a partner of CanopyStyle), leather, paper and paper-based packaging
• Reduce the risk of sourcing from Ancient and Endangered Forests and promoting next generation solutions as a partner of Canopy’s Pack4Good and CanopyStyle initiatives
• Collaborate with peers, experts and key industry stakeholders.

The PUMA Animal Welfare Policy aims to contribute to SDG 12 (Responsible Consumption and Production), SDG 14 (Life Below Water) and SDG 15 (Life on Land). Developed in collaboration with an animal welfare NGO, it includes commitments to:

• Implement the five provisions and aligned animal welfare aims
• Not use animal products from inhumanely treated animals
• Not use skins and hides from exotic species, CITES-listed species, or IUCN Red-listed species.

These policies were adopted to mitigate our material impacts and dependencies as well as physical and transition risks related to biodiversity and ecosystems that were identified as part of our IRO assessment identifying our material impacts and relation to business model (IRO-1, SBM-3). PUMA conducted stakeholder dialogues which includes organisations related to biodiversity, such as land conversion to develop this policy as explained in the General information (SBM-2) section.

Our policies do not yet cover the traceability of products, components and raw materials with significant actual or potential impacts on biodiversity and ecosystems along the value chain. They also do not refer to not sourcing from ecosystems managed to maintain or enhance conditions for biodiversity, nor to the social consequences of our biodiversity and ecosystems-related impacts. Additionally, they do not cover sustainable land, ocean or sea practices.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model (E4-1)

The relation of our impacts, dependencies, risks and opportunities to our strategy and business model is outlined in the General information (IRO-1) section. We have not yet created a formal transition plan for biodiversity. However, we have a detailed Climate Transition Plan explained in the E1 Climate change section. We believe transitioning to renewable energy and a low-carbon growth pathway can help address the biodiversity crisis, as biodiversity loss and climate change are interdependent and mutually reinforcing.

PUMA’s operations depend on a complex network of suppliers, manufacturers, and distributors. Our suppliers are independent third-party entities, unaffiliated with the PUMA Group. Therefore, PUMA has no operational control over our suppliers. Further details are in the General basis for preparation (BP-1).

PUMA’s dependencies on biodiversity are primarily linked to its supply chain and the use of agricultural raw materials. PUMA relies on natural resources like cotton, leather, and viscose, which are sourced from biodiversity-rich environments. We acknowledge that agriculture can impact biodiversity through soil degradation, water pollution, and habitat conversion. PUMA has committed to sourcing materials from certified and recycled sources to minimise its impact on biodiversity. This includes supporting initiatives like CanopyStyle to protect ancient and endangered forests. PUMA has policies in place to demand that animal-derived products are sourced from suppliers adhering to high welfare standards.

Beyond raw material production, manufacturing processes may impact biodiversity due to environmental pollution from textile dyeing and leather tanning and are reported in the ESRS E2 Pollution section.

Currently, we do not have a formal resilience analysis for biodiversity. In 2025, we plan to conduct a comprehensive assessment of biodiversity and ecosystem-related risks and opportunities, this will include a resilience analysis of our current business model and strategy, along with the development of a biodiversity action plan for the upstream value chain to further strengthen our strategy. However, PUMA's ongoing efforts in addressing climate, chemicals, water, and air issues have been integral to its strategy and have enhanced its resilience to biodiversity impacts. As a part of this exercise, we will consult and engage with key stakeholders and affected communities and perform capacity building activities. We aim to publish a SBTN by 2030 in the categories of freshwater, land use and oceans, focusing on our supply chain, complementing our existing science-based target for climate. We intend to develop a project timeline for this target-setting process in 2026 based on our risk analysis.

Actions and resources related to biodiversity and ecosystems (E4-3)

PUMA's biodiversity initiatives aim to reduce environmental impact and enhance conservation. By integrating biodiversity into our sustainability strategy, setting science-based targets, and supporting regenerative agriculture, PUMA seeks to improve soil health, reduce deforestation, and boost ecosystem resilience. Our commitment to the Fashion Pact and collaboration with organisations like Better Cotton, Leather Working Group and Canopy promote sustainable sourcing and biodiversity awareness. Developing a biodiversity vision and setting targets aligned with the Global Biodiversity Framework will help PUMA address biodiversity risks and support global conservation efforts, fostering a sustainable and responsible business approach.

We began our actions regarding biodiversity and ecosystems in 2019 when we identified biodiversity as a material topic in our first materiality analysis and added it as a pillar to our 10FOR25 sustainability strategy. The scope of our key actions is our global upstream supply chain focusing on raw material sourcing for cotton, leather, rubber, paper, Man-Made Cellulosic Fiber (MMCF), and paper-based packaging. PUMA aims to source 100 % cotton, leather, MMCF and paper-based packaging, from certified or recycled sources.

Our own operations, limited to offices, stores and warehouses (with one exception, our footwear production facility in Argentina), are not material and thus not included in the scope of our actions.

We developed a biodiversity roadmap in 2022 using the Fashion Pact Biodiversity Strategy Tool Navigator. In 2022, PUMA sponsored the Biodiversity Landscape Analysis Report to foster 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 biodiversity in the textile industry, and to offer concrete pathways for brands and retailers to deepen their engagement. Key activities include raising awareness, conducting risk assessments, and setting targets.

In 2023 and 2024, PUMA conducted a biodiversity risk assessment for key raw materials like cotton, polyester, rubber and leather.

In 2024, we organised in-person training for our Sustainability team and suppliers in Vietnam and China, covering 16 factories. The training, based on the Biodiversity Landscape Analysis report by Textile Exchange, emphasised biodiversity conservation, industry impacts, and actions suppliers can take. Feedback showed strong interest, guiding our next steps in biodiversity initiatives and strategy development for 2025.

PUMA supports regenerative agriculture practices and engages local smallholders through our support of the Better Cotton Initiative. Cotton farmers follow these principles, among others:

• Care for the health of soil: this principle requires farmers to develop a Soil Management Plan, including practices that contribute to maintaining and enhancing soil structure and fertility, and continuously improving nutrient cycling
• Enhance biodiversity and use land responsibly: this principle requires Better Cotton farmers to adopt a Biodiversity Management Plan to conserve biodiversity on and around their farm. This plan includes regenerative farming practices such as ensuring crop rotation, which helps with soil regeneration.

In 2024, to ensure that the leather used for PUMA products does not contribute to deforestation, we joined the call to action launched by the Leather Working Group and Textile Exchange to source all bovine leather from deforestation-free supply chains by 2030 or earlier. We purchased Textile Exchange Impact Partnership Incentives to directly support cattle farmers in Mato Grosso, Brazil. These incentives aim to improve their farming practices to achieve animal welfare certification within three years and have their farms third-party verified as deforestation/conversion-free annually. Our support helped empower four cattle farms to work towards achieving Textile Exchange’s benchmarked standards for animal welfare and zero deforestation.

Local and indigenous knowledge and nature-based solutions have not been part of PUMA’s actions related to biodiversity and ecosystems to date.

In 2025, PUMA plans to develop a biodiversity vision, focusing on priority nature risks. We will define goals and objectives for this vision and identify strategies to achieve them. Additionally, PUMA will set country-level goals and objectives based on priority risks, develop biodiversity targets aligned with the Global Biodiversity Framework and consider further biodiversity offset programmes for the coming year. This will support the development of our biodiversity transition plan, including local and indigenous knowledge and nature-based solutions. Future actions in 2025 and beyond include preparing for setting a SBTN.

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

¹ All resources listed here are included in the Other Operating Income and Expenses chapter of PUMA's consolidated financial statement.

Metrics and targets (MDR-M, MDR-T, E4-4)

The targets on biodiversity align with the policy objective to reduce our impact on biodiversity through various actions and reporting on sourced materials, as outlined in the PUMA Biodiversity & Forest Protection Policy. These targets address our business strategy and relate to SDGs, such as SDG 3 (Good Health and Wellbeing), SDG 6 (Clean Water and Sanitation), SDG 12 (Responsible Consumption and Production), SDG 14 (Life Below Water) and SDG 15 (Life on Land). Stakeholder dialogue and materiality assessments were conducted when developing targets for 2025 and 2030 as explained in the General information section. Progress towards these targets is measured annually, with data collected. Material data include material consumption (by weight) used in PUMA products and labelling and packaging data. The scope includes data collected through core and non-core Tier 1 and Tier 2 of PUMA and Cobra Golf suppliers (excluding PUMA United), for the first 10 months of the year and estimated for the remainder of the year (as reported in ESRS E5).

All targets apply to PUMA’s global operations and upstream value chain. The targets were not informed by the 2030 EU Biodiversity Strategy, as they were set before its publication, nor do they include location-specific ecological thresholds or biodiversity offsets. PUMA has not set contextual targets and therefore has an overall global target.

Vision 2030 Targets (Baseline year 2025)

• Set science-based targets for nature (SBTN) (upstream, global)
• Source all bovine leather from deforestation-free sources (upstream, global)

As part of the 2030 target-setting process for SBTNs, we will develop new and more specific biodiversity targets focusing on high-risk locations and commodities in our upstream supply chain as well as ecological thresholds.

10FOR25 Targets (Baseline year 2020)

• Support the industry in setting a science-based target for biodiversity (baseline value: Attended Fashion Pact’s biodiversity webinars) (upstream, global)
• PUMA sponsored an industry guideline, the Biodiversity Landscape Analysis Report, in 2022
• 100 % of the cotton, leather, MMCF, paper-based packaging and down procured should be recycled or from certified sources (baseline value can be found below) (upstream, global)
• In 2024, PUMA achieved 99.7 % cotton, 99.5 % leather, 71.8 % MMCF, 99.5 % paper packaging and 100 % down procured from certified or recycled sources, including trims.

We are committed to supporting our economic sector by developing science-based targets related to biodiversity or ecosystems. A key action was sponsoring the Biodiversity Landscape Analysis Report in 2022, we consider it as an achieved target. This target relates to the policy objective to collaborate with peers, experts and stakeholders. It does not relate to a specific step of the mitigation hierarchy but can be seen as a transformative goal.

The target on sourcing material from certified or recycled sources is considered a reduction target within the mitigation hierarchy. It is an absolute target for the upstream supply chain, self-developed by PUMA based on our impact, risks, opportunities and industry trends. The target applies from 2020 to 2025, with a 2020 baseline values of 100 % for cotton (excluding trims), 100 % down (in apparel and accessories) and 97.9 % for leather (footwear).