EANS-News: PUMA Completes First Environmental Profit and Loss Account which
values Impacts at EUR 145 million (with photo)
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Strategic management decisions
Herzogenaurach (euro adhoc) - PUMA Completes First Environmental Profit and Loss
Account which values Impacts at EUR 145 million
Impact of EUR 51 million resulting from land use, air pollution and waste
along
the value chain added to previously announced EUR 94 million for GHG emissions
and water consumption
PUMA´s Parent Company PPR announced its Luxury and Sport & Lifestyle Brands to
implement a Group EP&L by 2015
Munich, 16 November 2011 - Within the context of publishing a worldwide
unprecedented Environmental Profit and Loss Account (EP&L), the Sportlifestyle
company PUMA and PPR HOME, the PPR Group´s sustainability initiative, released
today, that the environmental impact for the key areas of greenhouse gas
emissions (GHG), water use, land use, air pollution and waste, generated
through the operations and supply chain of PUMA is valued at EUR 145 million
in
2010. Furthermore, in acknowledging the PUMA EP&L today as an innovative
sustainability approach, the PPR Group, PUMA´s majority shareholder, announced
that this groundbreaking economic valuation methodology1 for a company´s
environmental impacts will be implemented across its Luxury and Sport &
Lifestyle brands by 2015.
After publishing an economic valuation of EUR 94 million of GHG emissions
and
water consumption in May this year2, PUMA has now finalised its 2010 E P&L by
adding EUR 51 million caused by land use change for the production of
raw
materials, air pollution and waste along its value chain. Only EUR 8 million
of
the EUR 145 million total derive from PUMA´s core operations such as
offices,
warehouses, stores and logistics while the remaining EUR 137 million fall
upon
PUMA´s supply chain. These costs, which will not affect PUMA´s net earnings,
will serve as an initial metric for the company when aiming to mitigate the
footprint of PUMA´s operations and all supply chain levels.
"The unprecedented PUMA Environmental Profit and Loss Account has been
indispensible for us to realize the immense value of nature´s services that are
currently being taken for granted but without which companies could not sustain
themselves," said Jochen Zeitz, Executive Chairman of PUMA and Chief
Sustainability Officer of PPR. "At PPR HOME, we view the PUMA EP&L as an
essential tool to help drive PPR´s sustainability development across its Group
of brands because analysing a company´s environmental impact through an E P&L
and understanding where environmental measures are necessary will not only help
conserve the benefits of ecosystem services but also ensure the longevity of
our businesses. The results of the PUMA E P&L underpin the urgency for a
paradigm shift in the way we all currently do business and I have been pleased
to also see that the release of PUMA´s first results has generated widespread
interest among governments, corporations, NGOs and academics."
The PUMA E P&L and the associated methodology3 were developed with the support
of PricewaterhouseCoopers LLP and Trucost PLC, using recognised ecological and
economic techniques and building on a large volume of work in the fields of
environmental and natural resource economics. The valuation of the overall
results shows:
PUMA´s supply chain is responsible for 94% or EUR 137 million of its total
environmental impact.
Over half (57% or EUR 83 million) of all environmental impacts
are
associated with the production of raw materials (including leather, cotton
and rubber) in Tier 4 of PUMA´s supply chain4.
Only 6% or EUR 8 million derive from PUMA´s core operations such as
offices,
warehouses, stores and logistics; a further 9% (EUR 13 million) occur
in
Tier 1, with the remaining 85% (EUR 124 million) in Tiers 2-4.
GHGs make up 90% of the total impact of PUMA´s offices, stores and
warehouses.
Alan McGill, partner, Sustainability and Climate Change, PwC, said: "These
values are enough to make any business pay attention. The PUMA E P&L offers a
real insight into the environmental consequences of commercial decisions and at
the same time highlights potential commercial consequences of the environmental
realities unfolding around the world. This will make many companies consider
how they can apply similar analysis in their own organisations. Companies - big
and small - are now reliant on global supply chains, making their environmental
footprint much larger than many realise. Assigning economic values to the
environmental impact of a company´s operations enables a business to tackle
vital questions now, not just about environmental impacts, but business risk,
costs savings and finding new ways to become more effective. Without measuring
them, the impacts cannot be managed, or reduced."
E P&L Results Break-Down
Water Use and Greenhouse Gas Emissions
The impacts of water use and GHGs were found to be roughly equal, together
making up just under two thirds of the overall impact (around EUR 47
million
each)5. (For more details, please refer to the press materials of PUMA´s May
2011 announcement on http://about.puma.com/?p=6644)
Land Use
Negative impacts on biodiversity and ecosystem services as a result of land-use
for agriculture and buildings in PUMA´s supply chain are valued at EUR 37
million
or 26% of the total E P&L. More than any other impact these costs are
concentrated in Tier 4 with just 1% arising in PUMA´s operations and Tiers 1-3.
Because leather is used extensively in footwear - PUMA´s dominant business line
- and it is the most land extensive raw material that PUMA sources, the use of
leather is the greatest single factor contributing to impacts on land-use. As a
result, footwear accounts for EUR 34 million or 91% of the overall
land-use
impact.
Air Pollutants
The environmental damage caused by air pollution (particulates, ammonia,
sulphur dioxide,
nitrogen oxide, Volatile Organic Compounds (VOCs) and carbon monoxide) amounts
to EUR 11 million, representing 7% of the E P&L total. Tier 4 is responsible
for
the lion´s share of the air pollution impact, valued at just over EUR 4
million.
The single most significant contributor to this impact is ammonia emissions
from animal waste and fertilisers used in agricultural processes.
Waste
The environmental impact caused by waste generation (landfill and incineration)
is valued at EUR 3 million, representing 2% of the total PUMA E P&L. More
than
half of this derives from Tier 1 with some 21,000 tonnes of waste, followed by
Tier 2 suppliers with some 8,000 tonnes and PUMA Operations with some 6,000
tonnes of waste. The vast majority of PUMA´s overall waste is produced in Asia
/ Pacific where most of PUMA´s suppliers are located.
Dr. Richard Mattison, Chief Executive Officer, Trucost said: "The current era
of volatile resource prices, growing consumer and investor interest and greater
regulatory standards mean that environmental issues are increasingly core to
the business strategy. Water supplies, access to raw materials, a stable
climate and clean air are vital to business operations, but many companies
struggle to assess these issues due to their long and intricate supply chains.
The Environmental Profit and Loss Account approach provides a robust framework
to help companies unlock this complex challenge and embed sustainability at the
heart of business decision making. PUMA has demonstrated that accounting for
the environment is no longer a `holy grail´ objective, but simply makes good
business sense."
Responses to the PUMA 2010 Environmental Profit and Loss Account
The PUMA E P&L findings from 2010 have revealed that the lion share of PUMA´s
environmental impact occurs within its supply chain of external partners, which
the company has limited control over. In order to reduce the environmental
impact at the lower end of the supply chain, PUMA is dependent on the
cooperation of other industry players. To tackle this issue, PUMA has already
started to gain support from national governments, environmental organizations,
and representatives of science and industry to push for a shift in the current
business paradigm towards a more sustainable approach; one that acknowledges
the indispensible services provided by healthy ecosystems and respects their
limits. The first step to achieving this change requires the services to be
given monetary values in order to account for them when doing business.
At the same time, PUMA has started to implement solutions at its Tier 1
suppliers and within its own operations, where the company is able to provide
support for change, independently.
Jochen Zeitz commented: "Reducing the environmental impacts that derive from
PUMA´s supply chain represents a real challenge for us, as we have limited
control over these activities and on further Tiers, suppliers can be shared by
thousands of companies. However, we recognise that in order to make a real
change we, along with our industry peers, have to work responsibly to help
reduce the impacts of external supplier factories and raw material producers.
In addition to driving innovation in various areas along our own supply chain
and with our consumers, we also need the support of policy makers and the
engagement of the whole industry to implement a new model for businesses that
works with nature rather than against it and ultimately supports social and
economic sustainability."
Raising Awareness Among National Governments, the Industry and Science
The release of the initial E P&L results in May generated extensive media
coverage and attained significant interest among governments, industry peers
and international organizations.
Having been nominated as a co-opted member of the German Council for
Sustainable Development, which advises the German government on sustainability
issues, Jochen Zeitz presented the results and benefits of the PUMA E P&L to 15
Council members and a representative of the Federal Government last month. As a
result, the council will launch a project that aims at implementing standards
for PUMA´s environmental accounting statement and will promote the E P&L
approach as an innovative practice in public debates.
The UK government featured PUMA´s groundbreaking analysis as a best practices
case study for sustainable business in the Department for Environment, Food and
Rural Affair (DEFRA) Natural Environment White Paper in June 2011. White papers
are documents produced by the UK government setting out details of future
policy on a particular subject, often forming the basis for legislative reform.
Also, the Co-Chair of the Investment Commission and Treasurer for the UN
Environment Programme Financial Initiatives referred to the PUMA E P&L when
speaking at the 2011 UNEP Financial Initiatives Global Roundtable in Washington
last month. Further references have been made by sustainability experts Pavan
Sukhdev6 and John Elkington7, the Harvard Business Review8, the Stanford Social
Innovation Review9 and the World Business Council for Sustainable Development
to name but a few.
Stepping up internal Resources at PPR and PUMA
In support of these findings, PPR and PUMA have stepped up their internal
resources, hiring additional staff on a group level as well as within the
PUMA.Safe team in order to address the challenge of reducing the environmental
impact. On a corporate level, PPR is adding an Energy Management Specialist to
its sustainability team, who will immediately begin to investigate
opportunities for reducing Greenhouse Gas emissions. PPR has also hired a
Conservation and Ecosystem Services Specialist who will be investigating the
development of broadly-accepted definitions of sustainable cotton and rubber
and internal standards for their sourcing.
To better target and focus its efforts, the PUMA.Safe team, which ensures that
supplier factories adhere to PUMA´s social and environmental standards, has
created both a Humanity and an Ecology team. Five additional environmental and
social auditors will be joining the existing 13 employees in the PUMA.Safe
team, so that environmental impacts at PUMA´s Tier 1 and Tier 2 suppliers can
be better addressed and solutions for their reduction more rapidly developed.
PUMA is also hiring a Chemical Engineer to look at solutions to identify more
sustainable materials as well as supporting PUMA in phasing out harmful
substances within the supply chain.
Developing synergies and partnerships
PUMA and PPR HOME have shared the results of the E P&L with other industry
players and corporations to leverage adopting a new business model that takes
the costs of using natural resources and eco-system services within corporate
supply chains into account. Furthermore, PUMA has collected information on the
environmental performance of suppliers which can be used to provide benchmarks
for supplier performance targets and the sharing of best practice. PPR HOME
will also leverage the lessons learned during PPR´s Group EP&L implementation
stages in order to provide case studies across the Group´s companies and brands
to assist in broader adoption among businesses.
Building Capacity to Penetrate the Supply Chain
PUMA has already stepped up its capacity building programme for its suppliers
such as the CONSERV project at apparel and footwear factories in Vietnam. The
project, which was launched in cooperation with the German investment and
development organization DEG and international capacity building organization
Assist Asia, will support the factories of Tier 1, Tier 2 and Tier 3 suppliers
to reduce greenhouse gas emissions, secure availability of natural resources
and minimize the risks from waste and pollution through the implementation of
resource efficiency practices.
Innovating for the Development of Sustainable Products
PUMA has also looked into opportunities to address the impact of Tier 1 to Tier
4 suppliers through the innovative development of more sustainable products and
introduced its iconic style PUMA Suede to sustainability, creating the PUMA Re-
Suede made for the environmentally conscious consumer. It has been developed
using the latest materials and processes through eco-friendly product
innovation. It is comprised of 100% recycled polyester fibers, produced by a
chemical recycling process that reduces both the energy consumption and the CO2
emission by 80% compared to the production of virgin materials. The recycled
polyester is scrap waste from manufacturing processes that is repurposed to
create the synthetic material. With the development of the Re-Suede PUMA has
come a little step closer to achieving its goal of manufacturing 50% of the
international collections using more sustainable materials by 2015.
|Further information is available in the press kit on www.about.puma.com
|
|The PPR Group E P&L Press Release is available on www.ppr.com.
|
|
|
|Media Contact:
|
|Kerstin Neuber - Corporate Communications - PUMA AG - +49 (0) 9132 81 2984 -
|
|kerstin.neuber@puma.com
|
|Mich Ahern - Public Relations Consultant - PPR HOME - +44 (0) 7908 507 672 -
|
|mich.ahern@gmail.com
|
|
PUMA is one of the world´s leading Sportlifestyle companies that designs and
develops footwear, apparel and accessories. It is committed to working in ways
that contribute to the world by supporting Creativity, SAFE Sustainability and
Peace, and by staying true to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions taken. PUMA starts in Sport and ends
in Fashion. Its Sport Performance and Lifestyle labels include categories such
as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features
collaborations with renowned designer labels such as Alexander McQueen, Mihara
Yasuhiro and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra Golf and
Tretorn. The company, which was founded in 1948, distributes its products in
more than 120 countries, employs more than 9,000 people worldwide and has
headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit http://www.puma.com
|PPR HOME |
The PPR Group unites its brands behind PPR HOME to work together towards PPR
HOME´s Vision of a better world that is more sustainable - economically,
socially and ecologically - than the world we know and live in today. With PPR
HOME, the Group commits to lessen its impact on the environment, taking
responsibility and proactive steps to implement more sustainable business
practices. PPR HOME moves beyond the conventional CSR approach and promotes a
new business paradigm whereby the attainment of sustainability is driving
creativity and innovation, and vice versa, to build businesses that deliver
financial, social and environmental returns for the long run.
| |
|PPR |
PPR nurtures a group of high-growth global brands distributed in more than 120
countries. PPR generated revenue of EUR14.6 billion in 2010 and had
approximately
60,000 employees as of December 31, 2010. The PPR share is listed on Euronext
Paris (FR 0000121485, PRTP.PA, PPFP). Explore the PPR brand universe
at www.ppr.com: Luxury Goods (Gucci, Bottega Veneta, Yves Saint Laurent,
Alexander McQueen, Balenciaga, Boucheron, Girard-Perregaux, JeanRichard, Sergio
Rossi and Stella McCartney), Sport & Lifestyle (Puma, Volcom, Cobra, Electric
and Tretorn), Fnac and Redcats.
Pictures with Announcement:
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Further inquiry note:
Kerstin Neuber
Telefon: +49 (0)9132 81-2984
E-Mail: Kerstin.Neuber@puma.com
end of announcement euro adhoc
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Pictures with Announcement:
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company: PUMA SE
PUMA Way 1
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phone: +49 (0)9132 81 0
FAX: +49 (0)9132 81-2246
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language: English
Herzogenaurach, Germany (ots/PRNewswire) - PUMA Introduces A Recycled Suede in the 'Clever Little Bag' Sportlifestyle company PUMA introduces PUMA Re-Suede. PUMA took one of the Brand's most well-known and iconic shoes, the Suede, and re-tooled each component with the highest degree of recycled materials, delivering sustainable style through an unforgettable look. (Photo: ...