E3 Water and marine resources

E3 Water and marine resources

Impact, risk, and opportunity management

Material water-related impacts, risks, and opportunities (IRO-1)

Water is a critical resource in PUMA’s upstream value chain, particularly in wet-processing factories where it is used for washing, dyeing, printing, and finishing. Marine resources are not a material topic for PUMA because its core business of designing, manufacturing, and selling apparel and footwear does not rely on or significantly impact marine ecosystems, unlike industries that source directly from oceans.

PUMA followed the same process to identify and assess our material topics related to water resources as outlined in the General information (IRO-1) section. This assessment included a screening of sites and business activities for both actual and potential water resources-related IROs. Affected communities were not consulted in the IRO assessment and detailed information on stakeholder consultation is provided in the General information (SBM-2) section.

Own operations

PUMA’s own operations are limited to offices, stores, distribution centres, and one footwear factory in Argentina. None of these sites use water for industrial purposes. Wastewater from domestic usage is discharged into public sewer systems for further treatment. None of PUMA’s owned or operated sites directly discharges water into natural water bodies.

Therefore, no material IROs have been identified related to water for PUMA’s operations. Nevertheless, PUMA collects and reports data on water usage from all sites and encourages the use of water-efficient technologies. Using the WWF Water Risk Filter, PUMA identified 187 owned and operated sites in water-scarce areas and shared water-saving recommendations.

Upstream value chain

Water withdrawal and discharge present challenges, particularly in the upstream value chain. Factories in the upstream value chain consume substantial volumes of water for domestic and industrial purposes and subsequently discharge significant volumes of wastewater containing process chemicals. Water pollution, identified as a material topic, is reported in the E2 Pollution section. This section mainly focuses on water consumption and the potential impact on water scarcity as they are material topics for the upstream value chain.

Risk assessment

Water use is a key concern, especially in cotton and leather sourcing, as these materials often come from high-risk countries like India, Brazil, and the USA. To address these risks, 78.8% of our virgin cotton is sourced as Better Cotton, coming from farms licensed through the Better Cotton Initiative, which promotes water conservation and reduced pesticide use. For leather, 99.3% of leather came from gold-rated LWG-certified tanneries that implement water efficiency standards.

In 2025, PUMA used the WRI Aqueduct Tool to assess water risks across its upstream value chain, covering core Tier 1 and Tier 2 factories (90 PUMA and 32 stichd). Tier 2 factories are prioritised for further specific actions following water stress risk assessments because they rely heavily on water for wet-processing activities like washing, dyeing, finishing, and leather tanning. Tier 1 factories use far less industrial water since their process is limited to mostly assembly of finished products. Disruptions at Tier 2 due to scarcity or regulations on water use can halt material processing and create upstream bottlenecks, making these sites a key focus for monitoring and mitigation. The analysis showed that 10 PUMA Tier 2 factories in Bangladesh, Cambodia, China, and Vietnam and one stichd Tier 2 factory in Pakistan are subject to high baseline water stress. Baseline water stress reflects the ratio of water demand to available supply, indicating competition for resources.

Downstream value chain

Water use occurs during the consumer phase when PUMA apparel products are washed. PUMA does not control or influence how consumers wash their garments, making it an indirect environmental effect rather than one managed by the company. For these reasons, no material impacts, risks or opportunities have been identified in connection with downstream operations.

Strategy

PUMA’s strategy on water focuses on industrial use, particularly in wet-processing factories, where water-intensive operations pose significant risks. We collect data on water consumption and water withdrawal sources and have targets to reduce water consumption volume as detailed in Metrics and Targets (MDR-M, MDR-T, E3-3) section. Our risk assessment result further shapes our strategy to implement contextual measures in high-risk areas.

Policies related to water resources (E3-1)

PUMA’s Environmental Policy aims to meet all requirements of relevant environmental legislation. The policy covers actions related to industrial water consumption in our upstream value chain, focusing on relevant factories (Tier 1 and Tier 2 wet-processing factories). The Management Board is responsible for the approval and implementation of all water-related policies and handbooks.

The policy includes measures for conserving, reusing, and recycling water by implementing industry initiatives on water-efficiency measures, particularly in fabric dyeing and washing and in leather tanning.

PUMA tracks, calculates and aims to reduce its environmental impact by collecting data and reporting progress towards our goal of 15% water reduction per pair/piece by 2025 (based on the 2020 baseline).

Through joint multi-stakeholder industry initiatives and stakeholder dialogue, PUMA takes the perspective of key stakeholders into account in its policy related to water. Detailed information on stakeholder consultation is provided in the Interests and views of stakeholders (SBM-2) section. The policy is publicly available on our website and accessible to all affected and relevant stakeholders.

Actions related to water resources (E3-2)

Own operations

At PUMA’s headquarters, rainwater is collected to reduce freshwater use and costs. Most PUMA sites are rented and focus on efficient kitchen and sanitary facilities. We follow up on water-saving actions at sites located in water-scarce areas.

Upstream value chain

The key focus areas include raising awareness, understanding impact, internal actions, and collaboration. PUMA implements targeted actions and allocates resources to address water-related risks, with a particular emphasis on regions facing high-water stress, where suitable programmes are available. For example, we engage with stakeholders such as WWF for a water stewardship project in Vietnam and the IFC in Bangladesh to implement a water efficiency project. Our actions to mitigate water-related risks are long-term without a specific completion date since water-related risks are most likely to persist in the future.

Supplier training and programmes

We support suppliers in improving water management through training and cleaner production programmes. As part of these efforts, 62 PUMA factories joined Water Stewardship Training organised by WWF and GIZ under the To the Finish Line (TFL) programme, which included practical case studies on water efficiency.

We enrolled factories into resource efficiency programmes in key sourcing countries, including Aii’s Clean by Design in China-Taiwan, Vietnam, and Pakistan, the Resource Efficiency programme in Vietnam with Enerteam and IFC’s Cambodia Decarbonisation Programme. Between 2019 and 2025, 46 core Tier 1 factories and 45 core Tier 2 factories engaged in cleaner production programmes with expected water savings of 2,689,649.8 m³ per year.

With regard to water stewardship, PUMA engages in ongoing collaboration with WWF in Vietnam and the World Bank Group in Bangladesh. One textile factory participates in the WWF Water Stewardship programme, focusing on reducing water stress, exploring financial solutions, and encouraging collaboration among water-intensive industries in the Mekong Delta. In Bangladesh, PUMA joined the Bangladesh Alliance for Water Reuse and Recycle (A4R), a public-private initiative launched in May 2025. The alliance aims to accelerate water reuse in Bangladesh by fostering collaboration among government agencies, industry stakeholders, brands, technology providers, investors, and academic institutions. These actions have addressed the mitigation hierarchy of avoid, reduce, and transform. PUMA will consider future actions towards restore as part of the development of nature targets within the framework of the Science-Based Targets Network (SBTN) as mentioned in E4 Biodiversity and ecosystems section.

Metrics and targets (MDR-M, MDR-T, E3-3)

PUMA has set overall targets for the reduction of water consumption and improvement of wastewater quality in its upstream value chain, in line with our Environmental Policy’s objective of responsible water use. PUMA has not set contextual location-based targets for water. Suppliers' environmental KPIs track progress towards PUMA’s sustainability targets.

Our water targets are driven by our sustainability strategy and alignment with international standards, rather than specific regulatory requirements. The 2025 goal was set in 2019 following a materiality assessment and stakeholder consultation. The 2030 water goals were established in 2024 following a DMA, stakeholder consultations including suppliers, and consideration of current technological advancements as explained in the General information section. These targets fulfil PUMA’s commitment to the protection and preservation of our value chain, by meeting or exceeding all requirements in relevant environmental legislation and tracking, calculating, and reducing PUMA’s water impact.

¹ This target is not based on conclusive scientific evidence. It is relative, and voluntary. It applies from January 2020 to December 2025.

² 2025 data is collected from 19 core Tier 1 apparel, 18 core Tier 1 footwear, 25 core Tier 2 textile, and four core Tier 2 leather factories. The data is primary data collected from January to September. October to December is then extrapolated using error, trend and seasonality analysis based on January-September 2025 data.

We recalculated the baseline to exclude domestic water use in 2024. To measure the effectiveness of our actions, we track progress against targets and evaluate the implementation of water-related policies through environmental performance scorecards for core Tier 1 and Tier 2 factories.

In 2025, the Tier 1 footwear was the only category to fulfil the water reduction goal, achieving a 58.4% decrease. Tier 2 textile improved by 9.4%, falling short of the 15% target. This result in Tier 2 textile was due to reduced production volume and a greater variety of complex products that required the use of fresh water instead of recycled wastewater for manufacturing process. Tier 1 apparel and Tier 2 leather significantly underperformed, with water usage increasing by 220.6% and 43.5% respectively. For Tier 1 apparel, the increase reflects updated reporting practices and the inclusion of a washing process that was not previously captured. For Tier 2 leather, industrial water consumption per square metre of leather increased due to changes in product styles and processing steps, which require significantly more water.

¹ This target is not based on conclusive scientific evidence. It is absolute and voluntary. It applies from January 2026 to December 2030.

² Data is collected using primary data from January to September 2025 from 37 core Tier 2 from PUMA, Cobra, and stichd. Data for October to December 2025 is extrapolated using error, trend and seasonality analysis based on January-September 2025 data.

³ stichd will finalise its company-level 2030 targets in 2026.

2025 performance serves as a baseline for all Vision 2030 targets; no specific progress was planned for 2025. Whether progress is in line with the planned target will be analysed from 2026 onwards.

Water consumption (E3-4)

Own operations (»)

¹ Data on water withdrawals 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 calculated bassed on the number of employees on the site.

² Owned and operated locations in areas at water risk were determined using the WWF Water Risk Filter Tool. An area qualifies as being at water risk if the category of water availability is at very high risk (between 4.2 and 5). 187 of our owned and operated locations were selected.

³ Water recycled and reused from rainwater is defined as the total amount of water that is consumed from rainwater storage basins in the reporting year. We do not track the exact amount of water stored.

⁴ Total water consumption is defined as the sum of water withdrawals from public networks and the water recycled from rainwater. Although it says consumption, the water is not actually consumed but is discharged back into the public sewage network. This differs from the CDP's definition of water consumption, which defines water consumption as water that evaporates or spills and is not returned to the public sewage network.

⁵ As all of our water is discharged into the public sewage network and is treated by public wastewater treatment plants, we assume that our water discharges are equal to our water consumption.

¹ Net revenue relates to overall net revenue which can be found in the Sales chapter in PUMA's financial statement. For the 2024 water intensity figures, we included PUMA United sales data because from an operational point of view, the numerator of water consumption included PUMA United’s water consumption data.

Upstream value chain

While PUMA has no absolute water reduction target, we track water use at core factories. In 2024, we began separating industrial and domestic water data. Tier 1 factories use minimal industrial water overall, mainly for limited tasks such as ironing, screen‑print washing, and occasional cleaning or finishing of the final products. Since these activities are not continuous wet processes, Tier 1 sites have lower water consumption and fewer opportunities for water recycling as compared with Tier 2 factories, which have water‑intensive dyeing, washing, and finishing processes.

In 2025, PUMA’s total water withdrawals in the upstream value chain reached 6.4 million m³, with 57.9% coming from areas classified by WRI Aqueduct as being subject to high or extremely high water stress across eight countries.

Tier 1 footwear (14.6%) and Tier 1 apparel (14.3%) and Tier 1 accessories (2.3%) use water primarily for domestic purposes. Tier 2 textile accounts for the largest share of water withdrawals at 65.1%, due to its water-intensive processes such as washing, dyeing, printing, and finishing. Tier 2 leather accounts for 2.9% despite water-intensive tanning, due to the limited number of core factories. Tier 2 polyurethane contributes just 0.8%, thanks to the practice of reusing process water prior to treatment for recovering DMFa. More information regarding DMFa in PU production can be found in E2 Pollution section.

Of the overall water usage, 11.6% was offset through recycled and reused water (831,128.8 m³), comprising 0.8% from rainwater and 10.8% from recycled industrial wastewater. Increasing rainwater harvesting and industrial wastewater recycling would reduce dependency on high water stress areas. This will help to improve the resilience of our upstream value chain, even in times of droughts. With 77% of water withdrawals in water-risk areas from Tier 2 factories, PUMA will prioritise the implementation of wastewater recycling systems at these factories in China, Vietnam, and Bangladesh.

¹ Data on water withdrawals is collected using primary data from January to September 2025 from 79 core Tier 1 and 43 core Tier 2 from PUMA, Cobra and stichd. Data for October to December 2025 is extrapolated using error, trend and seasonality analysis based on January-September 2025 data.

² Core factories' locations of our upstream value chain are determined to be in areas at water risk using the WRI Aqueduct Tool. An area qualifies as being at water risk if the category of baseline water stress is at high or extremely high risk (>40%). 47 of PUMA and stichd core factories are in areas at water risk.

³ Water recycled and reused from rainwater is defined as the total amount of water that is consumed from rainwater storage basins in the reporting year. We do not track the exact amount of water stored.

⁴ Recycled industrial wastewater is calculated as the ratio of recycled industrial wastewater volume to total volume of treated industrial wastewater discharged combined with recycled industrial wastewater. If the factory does not distinguish between industrial and domestic wastewater, the total volume of wastewater discharged will be taken into account instead of volume of treated industrial water discharged.

⁵ Total water consumption is defined as the sum of water withdrawals from public networks, purchased water from external sources, ground water, surface water, and the water recycled from rainwater. Although it says consumption, the water is not entirely consumed but is discharged back into water bodies or public sewage network after treatment. This differs from the CDP's definition of water consumption, which defines water consumption as water that evaporates or spills and is not returned to the public sewage network.

The volume of water discharged is 18.8% lower than the amount withdrawn due to the nature of wet-processing operations, such as dyeing and finishing in Tier 2. These factors are consistent with Vietnam and China guidelines where water loss of 10-30% is expected in industrial process.

Water withdrawal at PUMA’s core factories located at areas of water risk came from public network (59.6%) and groundwater (40.3%). Water from public network is preferred due to its reliability and treatment standards. Groundwater use, mainly in Bangladesh, China-Taiwan and Pakistan where municipal access is limited, poses risks such as over-extraction, land subsidence, and declining water quality. Diversifying water sources helps reduce water scarcity risks.

Raw materials water footprint

We analysed the water use for each raw material based on 2025 consumption. The results indicated that cotton has the highest share (77.6%) on water consumption, followed by leather (14.3%) and polyester (3.6%). The weighted average of water intensity of the raw materials are highest on the natural material such as cotton (0.8 m³/kg), leather (0.7 m³/kg), while synthetic materials has much lower water intensity such as polyurethane (0.03 m³/kg), polyester (0.02 m³/kg), and EVA (0.02 m³/kg). As we further breakdown the analysis into product division, we intend to use this analysis as a guide for material selection with lesser water footprint for our products.