PUMA completes first Environmental Profit and Loss Account

17 Nov '11

5 min read

• Only 6% or € 8 million derive from PUMA?s core operations such as offices, warehouses, stores and logistics; a further 9% (€ 13 million) occur in Tier 1, with the remaining 85% (€ 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 € 47 million each).

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 € 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 € 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 € 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 € 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 € 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.

Click here to read more details

Puma

More Puma AG News... More Apparel/Garments News - Germany...