Supply Chain Innovation

PUMA examines environmental impact along supply chain

Friday, May 27, 2011

Photo courtesy of PUMA

On May 16, PUMA announced the results of its first Environmental Profit & Loss Account (E P&L), which indicated that raw material production accounts for the highest relative impacts of greenhouse gas (GHG) emissions and water consumption within PUMA’s operations and supply chain. PUMA will use the findings to help develop solutions for environmental issues and to lessen its carbon footprint. In 2010, the company’s sustainability scorecard set targets such as a 25% reduction of carbon, energy and water by 2015, and these efforts are already underway. According to PUMA, “these findings [will] better direct its sustainability efforts and initiatives.” A recent article in The Guardian called this a significant milestone, saying, “PUMA has become the first company in the world to put a value on the eco services it uses to produce its sports shoes and clothes, signaling a radical change in the way business will account for its use of natural resources.”

The E P&L methodology quantifies GHG emissions and cubic meters of water consumed in PUMA’s business and supply chain operations, and then applies values to account for the associated economic impacts.

PUMA Chairman and CEO Jochen Zeitz says the company will “encourage and collaborate with the industry to adopt this tool.” PUMA’s decision to share E P&L results with other companies to help create a common standard represents values shared by FLA. Read more about PUMA’s efforts here and see an article from Zeitz here.



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