ESRS E5 Resource use and circular economy

    ESRS E5 Resource use and circular economy

    Impact, risk and opportunity management

    Material resource use and circular economy-related impacts, risks and opportunities (IRO-1)

    We assess the environmental impact of our activities from raw material production to PUMA stores. Although PUMA is not using a precise tool, the outcome highlights the value chain stages with the greatest impact, guiding our IROs' focus. Results indicate that raw material production and processing are the primary contributors to our environmental impact. GHG emissions, water pollution, and land use account for over half of the total impact, stemming from the resource inflows from energy, water and land use for raw material and finished goods production. This approach enables us to refine our IRO management strategy by identifying hotspots and implementing plans that maximise resource efficiency.

    During our DMA, we evaluated resource use and circular economy impacts across our value chain and product categories. We analysed industry risks such as raw material, energy, and water scarcity. Circularity topics were identified as material using the same methodology outlined in the General information (IRO-1) section.

    T.48 Material resource use and circular economy-related impacts and relation to business model (IRO-1)

    Impacts

    Value chain location and time horizon

    Connection to impact

    Impact on people or environment

    Effects on business model and strategy and examples of actions

    Material negative impacts 

    Resource inflows 

    GHG emissions due to energy consumption, land-use change and high water usage derived from raw materials production

    Upstream

    Medium and long term

    Connection through use of resources for raw and recycled materials in PUMA products, including processes way up to the supply chain to cotton farming, oil extraction etc.

    Actual negative impacts from raw material production are land-use change, water pollution, deforestation as well as GHG emissions and water use

    - Environmental Policy, Circularity Policy, Biodiversity Policy

    - Responsible sourcing of raw materials

    - Environmental targets

    Resource outflows 

    Inappropriate waste disposal and subsequent plastic pollution from products and plastic packaging

    Downstream

    Short, medium and long term

    Directly linked as recycling of apparel and footwear items is still the exception and consumers receive goods in packaging, especially for sales via e-commerce platforms

    Actual impact on environment creating waste from packaging or PUMA products at the end of their useful product lifecycle

    - Circularity Policy

    - Research on biodegradable polymers

    - Recycled material targets

    - Packaging targets

    Fabric waste or other waste materials from manufacturing may pollute the environment if disposed inappropriately

    Upstream

    Short, medium and long term

    PUMA production is outsourced to independent manufacturing partners

    Potential negative impact on environment due to waste generation

    - Waste disposal standards for manufacturing companies

    T.49 Material resource use and circular economy-related risks and opportunities and relation to business model (IRO-1)

    Risks and opportunities

    Value chain location and time horizon

    Origins, dependencies and relation to business

    Mitigation actions and measures

    Risks 

    Resource inflows 

    Financial risks arise from higher costs linked to inefficient resource use and increasing natural material costs due to scarcity if circular practices are not adopted

    Upstream

    Medium and long term

    Dependency on costs of natural materials and implementation of circularity initiatives

    - Participation in industry initiatives on take-back and recycling schemes

    - RE:FIBRE program

    Resource outflows 

    Financial risk of increased cost from Extended Producer Responsibility (EPR) fees and reputation risks in the event of non-compliance

    Own operations

    Short, medium and long-term

    Dependency on regulatory developments and consumer perception. EPR fees will have to be paid by PUMA as importer of goods. Negative consumer perception will affect PUMA's ability to sell products

    - Circularity initiatives

    - Engagement with stakeholders advocating policy developments on products

    Linear business models (i.e. business as usual), which follow a take-make-waste approach, lead to inefficient resource use and increased waste, contributing to environmental degradation and resource depletion. As natural resources become scarcer and more expensive, companies not adopting circular practices may face rising material costs. Additionally, linear models often result in higher GHG emissions, water pollution and consumption, land-use change, deforestation and biodiversity loss, exacerbating climate change. Transitioning to circular models, which emphasise reuse, recycling, and regeneration, is crucial for reducing these negative impacts. By focusing on textile recycling and using recycled materials, PUMA can significantly reduce environmental impacts, including GHG emissions and water usage.

    The primary resource inflow for PUMA products in its supply chain is raw materials. The main raw materials used are cotton, polyester (apparel and accessories) EVA, polyurethane, leather and rubber (footwear), as well as paper and cardboard (footwear) and polyethylene (apparel and accessories) for product packaging.

    One of PUMA’s major resources inflows for own operations and upstream supply chain is energy, identified as material topic and reported in the ESRS E1 Climate change section. Water usage and potential pollution is reported in the ESRS E2 Pollution and ESRS E3 Water and marine resources, and the effect of our raw material usage on biodiversity is disclosed in the ESRS E4 Biodiversity and ecosystems sections.

    The production process of finished goods at PUMA generates fabric and other waste materials which can result in harmful substances contaminating soil and water, posing risks to ecosystems and human health, if not disposed appropriately. Given that material constitutes a significant portion of the finished products cost, factories usually optimise material usage to minimise material waste.

    The major outflows of PUMA’s manufacturing are packaging and products (footwear, apparel and accessories). A potential negative impact is the generation of waste from packaging as well as the end of the product lifecycle.

    We have engaged with stakeholders to address challenges and opportunities in resource usage, waste management and recycling. 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.

    Policies related to resource use and circular economy (E5-1)

    The Management Board is responsible for the approval and implementation of Circularity Policy. The policy has been agreed with internal stakeholders and reviewed by a circularity expert organisation. Our policy is publicly available to potentially affected stakeholders and aims to support the transition to a circular economy, responsible consumption and production and contribute to the SDGs. Various departments manage implementation of the policy and report progress regularly to the Management Board and leadership team.

    Our Circularity Policy addresses upstream activities such as the manufacturing stage of products by scaling up the use of renewable energy and recycling water by our suppliers and eliminating hazardous chemicals and waste to landfill. In our own operations, we focus on designing products in line with circularity criteria, increasing the use of recycled materials in our products and extending their life cycle through high-quality standards or care recommendations. We also track our own waste and advocate for increased waste recycling. In downstream, we aim to take responsibility for our products after use and inspire consumers and business partners to engage with circularity.

    PUMA’s Circularity Policy includes a commitment to increasing the use of recycled materials like polyester and cotton, mainly through product-to-product recycling using chemical and mechanical technologies. For materials with limited recycled options, we support research and development. PUMA is committed to using preferred recycled and recyclable materials for packaging. Our policy addresses the negative impacts derived from raw material production and inappropriate plastic waste disposal and fosters the opportunity to lower EPR fees by using more recycled content in products. The use of recycled content is regularly monitored by the sourcing and product teams through materials consumption and product data.

    Prolonging the life of a product involves durability, repairability and long-lasting design. PUMA aims to maintain high product quality and advance repairability through circular design. We plan to support circular business models like resale and repair to extend product life. Our policy addresses the negative impacts of waste generation at the end of the useful product lifecycle and fosters the opportunity to enhance public perception, implementing ESPR requirements in a timely manner. Once in place, circular design aspects will be monitored through internal product-related KPIs. PUMA also aims to increase its consumer communication and raise awareness about circularity.

    Our long-term plan is to close material loops where products taken back from consumers can be deconstructed into their main materials, allowing them to enter the production cycle again. We aim to establish or join product take-back schemes in our major sales markets. This target could enable the positive impacts of reducing discarded textile waste and address the risk of increased cost of EPR fees. The number of countries with take-back schemes is monitored regularly through communication between sustainability and retail teams.

    We will continue researching biobased and biodegradable options for polyester and other synthetic materials, to reduce fossil feedstocks and prevent plastic pollution. For plant-based materials, we aim to collaborate with organisations active in regenerating natural systems, with the long-term goal of rebuilding soil quality and natural capital, rather than depleting it.

    Actions and resources related to resource use and circular economy (E5-2)

    If not otherwise stated, the actions outlined below are already ongoing with a completion target year of 2030 as defined by our Vision 2030 except for circular design principles. Specific actions and timeframes for circular design principles will be established as part of the Vision 2030 strategy in line with still to be published EU requirements.

    For our own operations we focus on avoiding waste, for example by eliminating single use plastics (target date 2025), and increasing the percentage of recycled waste, for example by separate collection of paper, plastic and other waste. PUMA works on solutions for B2B product packaging for apparel and accessories, based on polyethylene bags. We switched our transit packaging B2B plastic bags to 100 % recycled content and optimised the thickness to save on weight. We also switched most B2C plastic primary packaging to paper. For the few remaining plastic items like hangtag strings, we have been working on non-plastic or recycled plastic alternatives.

    At the design stage, product materials, construction and appearance are determined, which also decides the product-lifespan potential. Circular design principles can extend products’ use, enhance material recovery at the end of life, and minimise waste throughout all product life stages (production, use and disposal or recycling). PUMA focuses on longevity (durability and repairability) and recyclability (disassembly, recycling, mono-material composition, and compostability).

    We encourage our suppliers to reuse and recycle fabric waste from PUMA production, ideally recycling offcuts into new polyester or cotton yarns. The Circular Fashion Partnership, launched by the Global Fashion Agenda and the German International Cooperation Society, coordinates brands, manufacturers, collectors, sorters, and textile recyclers to work together to segregate, digitally trace, and recycle textile waste into new products. PUMA joined this program in Vietnam and Cambodia in 2024.

    To avoid fabric waste in our upstream and downstream value chain and reduce dependency on virgin raw materials and used PET bottles, we expanded our RE:FIBRE textile-to-textile recycling programme. Polyester, our most consumed technical material, is recycled from fabric waste and unsellable polyester items into new textiles through chemical and/or mechanical recycling. We partner with football clubs like Manchester City or Borussia Dortmund, collecting used polyester products at fan shops. In 2024, we extended RE:FIBRE to cover jerseys of all major football clubs and federations, scaling up to over 1 million items.

    While focusing on recycling technology, we continue researching biobased and biodegradable polymers. We will only use biobased polymers that do not compete with food crops, are made from by-products and show environmental benefits in LCAs.

    To demonstrate our responsibility and support circular material flows, we aim to join or offer take-back schemes in all major markets by 2025. In 2024, we introduced new schemes in Germany, France and India, adding to those in Australia, China, Switzerland, the UK and the US, and clubs participating in the RE:FIBRE project.

    We also joined meetings of the Accelerating Circularity Initiative, an industry initiative aiming to scale product to product recycling of apparel, as well as the Closing the Loop on Footwear, an industry initiative taking the challenges around the recycling of footwear.

    EPR policies hold producers accountable for the entire lifecycle of their products, from design to disposal. The EU has proposed mandatory EPR for textiles by 2025, requiring separate collections and significant recycling or reuse efforts. PUMA contributed to EPR schemes in 2024 for European countries such as France and the Netherlands, and the payment of such fees will become a continuous business practice without a definitive timeframe for completion. As part of our Vision 2030 strategy and targets, PUMA is aiming to actively shape and participate EPR schemes in selected markets in collaboration with industry peers, for example in Germany.

    Due to contractual restrictions, some unsold products must occasionally be discarded, such as when a license contract expires. Unsold seasonal products are sold through various channels, and unworn returned products are resold. Products with minor defects are donated, while only severely damaged returns are discarded. No new product is destroyed without an explicit demand from an expiring licensing partner.

    Our communication strategy defines PUMA's brand positioning on circularity and outlines the behaviours we aim to encourage in consumers. The concept is promoted by PUMA ambassadors in a simple way, for example through the RE:FIBRE activations with football clubs or RE:HACKS from the Voices of a RE:GENERATION. In 2023 we began publishing care and repair guidelines for consumers to help extend the lifespan of their products. We focused on the most common reasons for discarding sportswear and provided simple tips to resolve these issues.

    T.50 Financial resources allocated to resource use and circular economy-related actions (in million €) (E5-2)1

    Action areas

    2024

    Until 2030

    Industry partnerships that enable circularity (i.e. recycling)

    0.1

    0.6

    Raw material and product certification scheme

    0.4

    2.1

    Total

    0.5

    2.7

    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, E5-3)

    In our Vision 2030 strategy, we voluntary set new targets in five circularity areas to be met between 2025 and 2030. These areas address the IROs identified as material for our business, helping us achieve the commitments of our Circularity Policy, such as taking responsibility for our products after use or reducing the dependency of virgin raw materials by scaling up the use of recycled ones. These efforts contribute to reducing the depletion of non-renewable resources. Achievement levels of the targets are monitored regularly through material and product reports, dashboards or internal communication.

    The circularity targets, complementing our climate-related goals, were presented and evaluated during the 2024 Sustainability Stakeholder dialogue. Over 40 external organisations, including suppliers, industry peers, NGOs, and investors, provided feedback on the level of ambition and potential impact, leading to adjustments in the targets. These targets were then approved by PUMA’s Management Board and the Sustainability Committee of the Supervisory Board. To the best of our knowledge, there is no science-based target setting framework which could be used for circularity topics; therefore, we have used our own methodology. Our circularity targets cover the production phase (recycled material usage), use phase (durability) as well as end of life (take back and recycling). Besides our Vision 2030 targets, we are also reporting on our 10FOR25 circularity targets, which were set in 2019 and are still active until the end of 2025.

    Vision 2030 Targets (Baseline year 2025)

    • Product design: establish circular design criteria focusing on recyclability, durability, and repairability based on industry standards. Subsequently, define specific targets for products adhering to these criteria (own operations, global)
    • Recycled material usage: 100 % recycled polyester fabric, 30 % fibre to fibre recycled polyester fabric for apparel, 20 % recycled cotton fabric for apparel (upstream, global)
    • New business models: provide access to consumers to re-sell or repair business models in selected markets (own operations, selected countries)
    • Increase consumer communication to raise awareness on circularity (e.g. podcasts, marketing campaigns) (own operations, global)
    • Waste management: for post-consumer waste collaborate with industry peers on sorting and recycling solutions taking EPR schemes into consideration (downstream, selected countries)
    • Primary packaging:100 % unavoidable plastic packaging made from recycled content. Eliminate plastic packaging where technically and economically feasible (upstream, global).

    10FOR25 Targets (Baseline year 2020)

    • 75 % recycled polyester for apparel and accessories (upstream, global) (baseline value: 17 %)
    • In 2024, 74.6 % of the polyester we used in our products was recycled (all product divisions)
    • 90 % of apparel and accessories with certified or recycled material (at least 50 % of product weight) 90 % of all footwear contains at least one component made of certified or recycled materials (upstream, global) (baseline value: 81 % apparel, 47 % accessories and 24 % footwear)
    • In 2024, 89.5 % of our products are made with certified and recycled materials (88.5 % apparel, 58.3 % accessories and 95.7 % footwear) in line with the PUMA S-Index
    • Set up or join product take-back schemes in major markets (baseline value: no take-back scheme and this target applies for own operations and downstream in the value chain) (own operations, selected countries))
    • Take-back schemes established in selected stores in Australia, China, India, France, Germany, Switzerland and the USA
    • Reduce production waste to landfills for footwear and apparel by at least 50 % (baseline value: apparel: 2.6 gr/piece, footwear: 23.7 gr/pair and this target applies for Tier 1 suppliers in upstream of the value chain) (upstream, global)
    • Tier 1 apparel: 66 %, Tier 1 footwear: 88 %, reduction of waste to landfills

    We prioritise sourcing certified or recycled raw materials as per industry standards and certification schemes for cotton, polyester, leather, and cardboard, to reduce the environmental impact of our products. For example, the conversion of natural habitats into agricultural land and the cultivation of renewable raw materials could lead to deforestation and biodiversity loss. The use of certified renewable virgin raw materials (as set below under the PUMA S-Index) could help to reduce potential negative impact on biodiversity. Our targets related to virgin renewable raw materials and their impact on biodiversity are explained in ESRS E4. The PUMA S-Index measures whether products contain at least 50 % certified or recycled materials by weight (apparel and accessories), and footwear to include one or more main components made from such materials. Main component in the upper includes the visible upper and its components, linings, sockliner, and strobel as the only non-visible component. They can be made of textile, leather, synthetic (PU) or TPU. It excludes trims such as eyelets, laces, counters, decorations, etc. Main components in the bottom includes outsoles, midsoles, and insoles. They can be made of Rubber, PU, TPU, EVA; excluding trims and decorations. Other materials, such as facilities or equipment, are considered immaterial due to PUMA’s outsourced manufacturing business model. S-Index data is collected from January to December 2024 using primary data from a PUMA internal report (excluding stichd) based on the total sum of all purchase orders by volume.

    Suppliers' Environmental KPIs track progress towards PUMA’s sustainability targets. Environmental data are collected for 10 months from 97 PUMA core Tier 1 and Tier 2 factories (textile, leather, PU) excluding PUMA United and stichd, with estimates for the remaining two months.

    Material data include material consumption (by weight) used in PUMA and stichd products and labelling and packaging data. The scope includes data collected through core and non-core Tier 1 and Tier 2 from 814 factories for material data and 60 factories for labelling and packaging data of PUMA and Cobra Golf suppliers (excluding PUMA United), 239 factories for material data and 217 factories for labelling and packaging data of stichd suppliers, for the first 10 months of the year and estimated for the remainder of the year. The cascading principle is applied where applicable. For example, returned products which are still fit for purpose are offered for sale or donated rather than recycling by PUMA’s take-back partners. If no other use is possible, converting damaged returns into energy is prioritised.

    Resource inflows (E5-4)

    For biological materials, PUMA uses mainly cotton and leather, along with natural rubber, paper and cardboard for packaging and office purposes. Preferred biological materials are sourced according to standards such as the Better Cotton Initiative, the Leather Working Group, Global Recycled Standard and the Recycled Claim Standard. For paper and carboard, we also accept the Forest Stewardship Standard. The leather used for our products is a by-product of the meat industry. For technical materials, PUMA mainly uses polyester, polyurethane, synthetic rubber and EVA for the soles of shoes. The Global Recycled Standard and the Recycled Claim Standard are used to certify recycled content.

    T.51 Resource inflows (in T) (E5-4)1

     

    2024

     

    Amount

    %

    Biological materials2

     

     

    Paper and cardboard

    48,381

    48.0 %

    Cotton

    44,321

    44.0 %

    Leather

    5,746

    5.7 %

    Natural rubber

    1,458

    1.4 %

    Others

    830

    0.8 %

    Biological materials weight

    100,736

    100 %

    Sustainably sourced biological materials (%)

     

    96.9 %

    Technical materials3

     

     

    Polyester

    53,867

    36.8 %

    Synthetic rubber

    45,373

    31.0 %

    Polyurethane

    17,555

    12.0 %

    EVA

    18,164

    12.4 %

    Others

    11,583

    7.9 %

    Technical materials weight

    146,542

    100 %

    Total weight of materials

    247,278

     

     

     

     

    Secondary materials4

     

     

    Recycled polyester

    38,730

    71.9 %

    Recycled cardboard

    36,034

    74.5 %

    Recycled cotton

    5,073

    11.4 %

    Other recycled materials

    5,159

    5.1 %

    Secondary materials weight

    84,996

     

    Secondary materials (%)

     

    34.4 %

    1 Including PUMA and stichd's materials data.

    2 Biological materials including virgin and secondary materials.

    3 Technical materials including virgin and secondary materials.

    4 Percentage recycled material by material type.

    To obtain the data on inflow materials, PUMA provides training to its suppliers on material consumption data reporting. A material consumption data questionnaire is sent to PUMA’s Tier 1 and Tier 2 suppliers, who report the types of materials used in PUMA products along with the corresponding certifications recognised by PUMA. Suppliers then upload the completed questionnaire for data consolidation. The material team validates the data based on the usage confirmed at the development stage to avoid mistakes such as data duplication. If discrepancies arise, the PUMA material team contacts the suppliers to confirm the final data. Full-year data is accounted for using the actual material weight data from January to October and extrapolating the planned material shipments (as of 31 October) that will be delivered between November and December. This extrapolation assumes that orders placed after the end of October will be delivered within the same year.

    Resource outflows (E5-5)
    Products and packaging

    The main output of PUMA’s outsourced production process are footwear, apparel and accessories. Circular design principles are applied using strict quality criteria for the goods produced and by maximising the amount and percentage of recycled input materials. In 2024, we used over 10 % recycled cotton and almost three quarters of all polyester in PUMA products originates from recycled sources The recyclability of PUMA’s products depends on several factors, including the development of recycling technologies that can separate blended materials for apparel, or the mixed materials in the production of footwear. In general, footwear, apparel and accessories are currently not recycled at scale after their use and PUMA goods are no exception.

    For the primary packaging of our goods, we use paper and cardboard for shoe boxes, as well as polyethylene bags for apparel and accessories. Both our shoeboxes and the polybags (excluding stichd) used for product packaging use over 90 % recycled input materials and are also recyclable after use. Our shoeboxes are made from 100 % cardboard and our polybags from 100 % polyethylene. Therefore, depending on the recycling method used, both packaging items are fully recyclable, with the exception of the colours used for printing on the surface of the box and the bag.

    Most garments we sell are made from polyester, cotton, or a blend of both materials. If PUMA garments are sorted by material content and forwarded to the appropriate recycling company, garments with over 90 % polyester content can be chemically or mechanically recycled. All other garments can be downcycled into products such as painter’s fleece or insulation materials. In the absence of a clear definition or industry standard on which materials or components can be considered recyclable, we are unable to report a precise figure on the recyclable content of PUMA footwear and accessories products.

    To the best of our knowledge, there is no universally mandated standards specifically for the durability of footwear, apparel or accessory products. To ensure product quality, PUMA has an internal quality management system in place for apparel, footwear and accessories. While we cannot precisely predict the overall durability of our products, as it depends on usage, we assume that under normal wear and care conditions, 100 % of our products are able to meet and exceed a warranty period of 24 months. Some signs of wear and tear such as broken stitches, smaller bonding gaps, or worn-out sock liners can be repaired by artisan shoemakers or cobbler's shops. We are currently awaiting the finalisation of the ESPR on durability standards for footwear and apparel. Once these regulations are established, we will align our durability standards to ensure compliance.

    At PUMA, we do not offer a formal repairability service for our products. However, our products are made to be repairable in normal tailor repair shops, for example, broken stitches or buttons. We offer guidance on product care and washing tips on PUMA.com and RE:HACKS to extend the life of apparel and footwear for our consumers.

    Waste

    Due to PUMA’s outsourced production model, waste from own operations relates to packaging waste (cardboard and plastic) from PUMA’s owned and operated warehouses and stores, as well as paper and general waste from PUMA’s office locations.

    T.52 Waste generation in own operations (in T) (E5-5)1

     

    2024

    Non-hazardous waste prepared for reuse

    3.3

    Non-hazardous waste sent to recycling

    4,483.7

    Total non-hazardous waste diverted from disposal

    4,487.0

    Hazardous waste prepared for reuse

    0.0

    Hazardous waste sent to recycling

    4.4

    Total hazardous waste diverted from disposal

    4.4

    Total waste diverted from disposal

    4,491.4

    Total waste diverted from disposal (%)

    66 %

    Non-hazardous waste sent to incineration

    1,269.1

    Non-hazardous waste sent to landfill

    852.4

    Non-hazardous waste sent to other disposal2

    116.7

    Total non-hazardous sent to disposal

    2,238.2

    Hazardous waste sent to incineration

    0.9

    Hazardous waste sent to landfill

    2.7

    Hazardous waste sent to other disposal

    34.0

    Total hazardous waste sent to disposal

    37.6

    Total radioactive waste

    0.0

    Total waste sent to disposal

    2,275.8

    Total waste sent to disposal (%)

    34 %

    Total waste

    6,767.2

    1 Data on waste generation is collected using primary data (approx. 50 %) and estimations (approx. 50 %). 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 Disposal method 'other disposal' was selected when method of final disposal was different from incineration or landfill or could not be identified.