Puma SE

RATING

SECTOR

Shoes, Apparel

WEBSITE

CONTACT

Puma Way 1
91074 Herzogenaurach
Germany

Tel: +49 9132 81 0
Fax: +49 9132 81 2246
Email: info@puma.com

STOCK EXCHANGE

LISTING

  • #73 America’s Best Employers 2021
  • #123 Best Employers for Diversity 2020
  • #47  World’s Best Employers 2020

EMPLOYEES

14,300

CHIEF SUSTAINABILITY OFFICER

Stefan Seidel

AWARDS

  • 2020 Best Company for Employee Safety and Security Management Practices and best Health and Safety Campaign at the Health, Environment, Safety, and Security Award
  • 2017 Best printed report: International

CONTENT SOURCE

FURTHER READING

Report created by Elspeth Weiss

Puma SE

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 

Company Activity

Puma SE is a leading sports apparel and shoe brand. It was founded in 1948 by Rudolf Dassler in Herzogenaurach, Germany. It encompasses Puma and Cobra Golf, a golf equipment company based in California. They are also affiliated with Stichd, who develops, produces, and distributes apparel for Puma.

In 2020, Puma made €5.23 billion in sales and €209 million in Earnings Before Interest and Taxes. 

Puma is committed to values of bravery, confidence, determination, and joy. These values set a basis for the culture and approach Puma takes in its business decisions. They aim to be innovative in style and performance, and want to elevate sports performance in team sports, golf, running, training, and motorsports. 

Company Sustainability Activity

Puma is dedicated to keeping themselves accountable and never settling with their emission levels. Through their transparency, they are not afraid to admit where they have room to improve. Their ‘Forever Better’ approach shows their commitment to bettering communities, transparency, products, targets, and their factories. 

Puma strives for these goals by supporting causes that exemplify their values, diversify their workforce, and considering their impact on people. They do not limit their focus on one area of sustainability as they reinforce their commitments across all business practices. 

Puma’s 10FOR20 strategy lays out its plan to maximize positive impact. They have 10 initiatives that align with the UN Sustainable Development Goals to move towards a more sustainable company in every aspect of their business. 

Highlights

  • Comply with Paris Agreement
  • Part of France’s “Fashion Pact
  • Suppliers have been approved by the Fair Labor Association since 2004
  • First Mile Collection using recycled bottles for fabric
  • Day Zero Collection using water-saving technology

Targets

Puma’s targets for 2025

Human Rights

  • Train 100,000 direct and indirect staff on women empowerment
  • Mapping of sub-contractors and T2 suppliers for human rights risks
  • 25,000 hours of community engagement globally per year

Health & Safety

  • Zero Fatal Accidents (Puma and Suppliers)
  • Reduce accident rate to 0.5 (Puma and Suppliers)
  • Building safety operational in all high-risk countries

Chemicals

  • Ensure 100% of Puma products are safe to use
  • Reduce Restricted Substances Failures to under 1%
  • Reduce organic solvent usage to under 10gr/pair

Water & Air

Climate

  • Align target with 1.5 degrees
  • 100% renewable energy for Puma entities
  • 25% renewable energy for core suppliers

Plastic & Oceans

  • Eliminate plastic bags from Puma stores globally
  • Support scientific research on microfibers
  • Research biodegradable plastic options for products

Circularity

  • Take Back Scheme for all major markets
  • Reduce production waste to landfill by at least 50%
  • Develop recycles material options for cotton, leather, and rubber

Products

  • 100% of cotton, polyester, leather, and down from certified sources
  • Increase recycled polyester use to 75% (apparel)
  • 90% of all footwear contains at least one more sustainable component

Fair Income

  • Fair wage assessments for top 5 sourcing countries
  • Effective and freely elected worker representatives at all core suppliers
  • Ensure bank transfer payments to workers at all core suppliers

Biodiversity 

  • Support setting up a Science-Based Target (SBT) on biodiversity 
  • 100% of cotton, leather, and viscose from certified sources
  • Sero use of exotic skins or hides

Progress

Stakeholder Engagement 

  • Global stakeholder meetings at headquarters
  • Regional supplier round tables with 590 participants
  • Forever Better Website launched
  • Public reporting

Human Rights

  • Human Rights Assessments carried out for Puma and supply chain
  • Recruitment fees eliminated from Tier 1 suppliers
  • 21,433 community engagement hours (2019)

Social Compliance

  • All Tier 1 & 2 suppliers are frequently audited
  • Joint industry assessment tool rolled out in China
  • No Zero Tolerance Issues at year-end
  • Increase percentage of shared audits to 50%
  • Compliance with industry standards/ILO Core Conventions for all core suppliers

Climate Change

  • Science-Based Target accepted and published
  • Coverage of 90% of all electricity used globally by renewable energy tariffs or renewable energy certificates

Chemicals

  • Phased out intentional use of hazardous chemicals 
  • Zero discharge of hazardous chemicals from supply chain
  • Reduce Volatile Organic Compounds (VOC) consumption per pair of shoes below 15g/pair
  • Wastewater compliance rate on individual chemical parameters at 94%
  • Regulated Substances List (RSL) compliance rate over 98%
  • Eliminate ecologically harmful fluorocarbon from products

Water & Air

  • Start of wastewater testing and publication 
  • Puma struggled with achieving these goals and has moved them to the 2025 targets.

Materials

  • bluesign® (polyester), Leather Working Group (leather), and FSC (paper & cardboard) certification used in significant volumes
  • FSC – 90%
  • LWG – 90%
  • bluesign® – 50%
  • Apparel Cotton (BC) – 50%

Environmental P&L

  • Report yearly on impacts
  • Puma EP&L value significantly reduced
  • Reduction per unit of turnover from 2013 to 2018 of 13.6%

Health & Safety

  • Zero fatal accidents
  • Average injury rate of Puma entities below 1 and below industry average
  • Significantly reduce injury rate

Governance

  • Puma Code of Ethics training participation rate: 99% (staff with email accounts)
  • 97.6% of suppliers (99% of core suppliers) trained in anti-corruption
  • Anti-corruption section included in supplier audit tool

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 3 

  • Health & Safety targets achieved zero fatal accidents; injury rate below industry average. 
  • Chemical targets achieved zero discharge of hazardous chemicals from our supply chain.
  • Social Compliance targets comply with industry standards/ILO Core Conventions for all key suppliers, including suppliers of finished goods, components, and materials.

SDG 4

  • Human Rights targets embed human rights across operations and suppliers, positively impacting the communities where Puma is present.
  • Trained 100,000 direct and indirect staff on women empowerment.

SDG 5

  • Social Compliance targets comply with industry standards/ILO Core Conventions for all key suppliers, including suppliers of finished goods, components, and materials.
  • Human Rights targets embed human rights across operations and suppliers, positively impacting the communities where Puma is present.
  • Trained 100,000 direct and indirect staff on women empowerment.

SDG 6

  • Chemical targets achieved zero discharge of hazardous chemicals from our supply chain.
  • Wastewater compliance rate on individual chemical parameters at 94%.
  •  
  • Water & Air targets implemented Industry Good Practice for effluent treatment and air emissions. They are met by 90% of Puma key suppliers or responsible for significant air emissions. 
  • Have a goal to become 90% compliant with the Wastewater Quality Guideline of ZDHC, 90% compliant with the Air Quality Guideline of ZDHC, and have a 15% water reduction per pair or piece of product.

SDG 7

  • Environmental P&L leads to an annual report on environmental impact.

SDG 8 

  • Governance targets maintain and run a state-of-the-art Compliance Management System.
  • 97.6% of suppliers (99% of core suppliers) trained in anti-corruption.
  • Social Compliance targets comply with industry standards/ILO Core Conventions for all key suppliers, including suppliers of finished goods, components, and materials.
  • No Zero Tolerance Issues at year-end.

SDG 10

  • Human Rights targets embed human rights across operations and suppliers, positively impacting the communities where Puma is present.
  • Human Rights Assessments carried out for Puma and supply chain.
  • Recruitment fees eliminated from Tier 1 suppliers.
  • Train 100,000 direct and indirect staff on women empowerment.
  • Social Compliance targets comply with industry standards/ILO Core Conventions for all key suppliers, including suppliers of finished goods, components, and materials.

SDG 12

  • Materials targets mean more sustainable alternatives are used for key materials (cotton, polyester, leather, cardboard, polyurethane)
  • bluesign® (polyester), Leather Working Group (leather), and FSC (paper & cardboard) certification used in significant volumes
  • Environmental P&L leads to annual reports on environmental impact.

SDG 13

  • Climate targets to develop and implement plans to reduce carbon dioxide. 
  • Align target with 1.5 degrees.

SDG 15

  • Materials targets mean more sustainable alternatives are used for key materials (cotton, polyester, leather, cardboard, polyurethane)
  • bluesign® (polyester), Leather Working Group (leather), and FSC (paper & cardboard) certification used in significant volumes

SDG 16

  • Governance targets maintain and run a state-of-the-art Compliance Management System.
  • 97.6% of suppliers (99% of core suppliers) trained in anti-corruption.

SDG 17

  • Stakeholder Engagement targets create stakeholder dialogue; Public reporting; Consumer information

Evaluation

Puma is part of the fashion and sportswear industry which is widely known for being highly unsustainable. Puma has done extensive work to create targets in every part of their company that applies to many different aspects of sustainability and hitting on many of the UN Sustainable Development Goals. They are also committed to complying with the Paris Agreement and Fashion Pact

Despite reaching many of their holistic targets, Puma has a lack of certificates and labels. This lack of credibility weakens their standing as a sustainable company. They also still partners with FormulaOne which is also publicly ridiculed for its unsustainable practices. 

Their innovation, accountability, and transparency are commendable; however, they cannot overcome their involvement in highly unsustainable industries and lack of accreditation. 

This report gives the company a rating of C.

Analyst Outlook: Neutral

Despite unsustainable affiliations, Puma is committed to incorporating sustainability into its business at all levels and sectors. 

They have extensive reports showing their transparency, but they still lack certifications and are hurt by their support in environmentally harmful industries. 

Key Points

  • Using sustainable materials like Better Cotton and bluesign® certified polyester in all products.
  • Partnered with sustainability communication experts Futerra and launched Forever Better, a consumer-oriented website highlighting sustainability practices.
  • Environmentally focused goals to control chemical use and discharge, improve water use and management, and improve energy efficiency and carbon dioxide emissions.
  • Corporate-focused goals to strengthen brand positioning and fight against corruption.
  • Product-focused goals to improve product design, development, and quality.
  • Supply chain-focused goals to address transparency and performance, improve workers’ health and safety, work towards paying a living wage, and focus on responsible sourcing of raw materials. 
  • Have both global and local goals in sectors covering social compliance, human rights, chemicals, materials, climate change, health and safety, water and air, and governance. 
  • Leader in transparency as Puma is the first company to put a monetary value on environmental impact in their Environmental Profit & Loss Account.
  • Run carbon neutral offices in Germany and Spain.
  • Hit 3% reduction in emissions before 2020 target.
  • Reached nine out of ten targets for 2020, but struggled with Water & Air goals as they did not anticipate it to take four years to develop standards for air emissions.
  • Initiatives supported by regional partnerships with Bangladesh Accord on Fire and Building Safety, Indonesia Protocol on Freedom of Association, Chinese National Textile and Apparel Council, German Partnership for Sustainable Textiles.
  • Work with UNICEF to support water and hygiene standards in South Africa.
  • Members of World Federation of the Sporting Good Industry and European Sporting Goods Industry Federation.
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