PARIS — PPR has garnered the opinions of a group of independent experts in a bid to improve its “environmental profit and loss accounting,” which it introduced at sportswear firm Puma in November 2011 and plans to extend to the rest of its brands by 2015.
This story first appeared in the December 17, 2012 issue of WWD. Subscribe Today.
The accounting measures translate the environmental impact of the French group’s products into a figure in euros and cents.
In addition to making recommendations of a technical nature, the experts found that the methodology was complex, meaning that it was unlikely to be picked up by other companies unless a more accessible model is developed, PPR said in a summary of the consultation.
“The E P&L was seen to have great potential as a decision-making tool, but it was noted that no one had yet seen the forward ‘game plan’ for how this will be harnessed. The reasons behind this are the need for standardization of the principles of the approach and, in particular, how uncertainty is dealt with,” it said.
The report called for a manual or “cookbook” to guide businesses through the process and help standardize data from different companies. The information could be used as an indicator of risk, and influence investment and project appraisal decisions, it noted.
Marie-Claire Daveu, chief sustainability officer and head of international institutional affairs at PPR, and Jochen Zeitz, director and chairman of the board’s sustainable development committee, said they were looking at ways of incorporating these views and recommendations into their methodology.