Puma and PPR Home, the PPR Group’s sustainability initiative, unveiled what it called an “unprecedented” environmental profit and loss account Monday.
During a press conference in London, Jochen Zeitz, chairman and chief executive of Puma and chief sustainability officer of PPR, said that Puma had calculated that its impact on the environment during 2010 in monetary values represented a cost of 94.4 million euros, or $133 million at current exchange, in terms of the green house gases emitted and water consumed through Puma’s operations and supply chain.
“This environmental profit and loss statement is a milestone in Puma’s mission to become the most desirable and sustainable sports lifestyle company in the world,” said Zeitz. “It is an essential tool and a shift in how companies can and should account for, and ultimately integrate into business models the true costs of their reliance on ecosystem services.”
Alan McGill, a partner in Price Waterhouse Coopers’ global sustainability and climate change team, who also worked on the report, added that: “Businesses that understand their impacts and dependencies on nature, and understand the opportunities and risks this represents, are more likely to build resilience into their business models.”
Zeitz noted that Puma chose to measure greenhouse gas emissions and water consumption for the first stage of the three-stage report as they are “the biggest environmental challenges our industry faces.”
Puma’s report, which was developed with Trucost, a British company that helps businesses plan for the environmental risk associated with their operations, and Price Waterhouse Coopers, found that Puma’s supply chain was responsible for 87.2 million euros, or $123 million worth of the company’s total environmental impact. The biggest impact came from raw material production, such as harvesting cotton and cattle ranching for leather. In light of this, Puma plans to share its findings with its peers in the industry who also use the supply chains. “I am hoping that this will serve as a catalyst for us to work together to reduce our shared impacts across the supply chain,” said Zeitz.
Next, Puma will look at the impact of its operations on acid rain and smog precursors, volatile organic compounds, waste and impact on land use, and will produce a complete report to be released in the fall. The company will then add to the report the social aspects of Puma’s business – such as working conditions and health – while the third stage will be to seek to value the social and economic benefits that Puma’s business brings to a region, such as job creation and wages.
As part of the initiative, PPR, Puma’s major shareholder, has joined the World Business Council for Sustainable Development, and Puma will soon join the Sustainable Apparel Coalition. In addition, Puma aims that by 2015 50 percent of its international collections will be made according to the company’s S-Index, its internal sustainability standard.
“It all starts with transparency,” said Zeitz. “It’s not [just] talk, it’s really walking the talk, allowing investors and consumers to judge what corporations are doing.”