In 2016, PUMA implemented some organisational changes and further refined our sustainability strategy to better balance all three dimensions of sustainability; Social, Economic and Environmental, building on our long history of sustainability and our established programmes. We also decided to focus on two strategic priorities:
1) Sustainability and business need to go hand in hand to achieve sustainable business. Therefore, we changed the setup of our sustainability department last year and embedded it into our PUMA International Trading (PIT) entity. We also established an Executive Sustainability Committee on corporate level. With these changes, we have ensured that social, environmental and governance aspects are taken into consideration when we do business; whether as part of the legal framework of manufacturing agreements that define the commercial relationship between PUMA and our suppliers, or as an integral part of the bonus agreements for the PUMA management worldwide.
2) The aim of all our sustainability initiatives is to create maximum positive impact. We have identified two main drivers to achieve this goal: the use of preferred materials for our volume styles and the will to join forces with our industry peers to tackle supply chain related environmental and social impacts. Therefore, we have implemented ambitious material targets and further expanded our role in industry working groups such as the Better Work Program of the International Labour Organisation (ILO) and International Finance Corporation (IFC), or the Zero Discharge of Hazardous Chemicals Foundation to support the creation and implementation of industry-wide solutions.
In support of these priorities, we continue to commit ourselves to the 10 Principles of the United Nations Global Compact and have linked our 10FOR20 Sustainability Targets to the new United Nations Sustainable Development Goals. In 2017, we will focus on our regional stakeholder dialogue events and on implementation our 10FOR20 Targets Action Plan.
The Managing Directors of PUMA SE remain firmly committed to acting responsibly, be it with our own employees, our business partners, consumers, the communities in which we operate, or within our supply chain. For the first time we have included activities of our material and component suppliers into our sustainability-reporting, besides our own impacts and those of our direct suppliers.
We trust in the continued support of our shareholders and stakeholders. Please do not hesitate to contact us with any sustainability-related questions or comments you may have under email@example.com or provide your feedback to this report on our website.
Lars Sørensen, Chief Operating Officer
At the end of 2015, we reached the end of our last five-year sustainability target period, which had mainly focused on environmental targets. From 2016 onwards, we have set a broad range of new sustainability targets until 2020, or 10FOR20 Targets, ranging from Health and Safety to Corporate Governance, and from Human Rights to eliminating Hazardous Chemicals.
In 2016, we started implementing our new 10FOR20 Sustainability Targets, which we had set based on our Materiality Analysis, the Environmental Profit and Loss Account, as well as more than a decade of active stakeholder dialogue. In order to do so, we developed a 10FOR20 Action Plan with the help of our newly created Executive Sustainability Committee and shared this plan with key stakeholders and sustainability experts during the 13th edition of Talks at Banz.
During this process we received very valuable feedback, leading to the adaptation of our 10FOR20 Target on water pollution, which now also includes a reference to air pollution, as well as several amendments to our 10FOR20 Action Plan.
For instance, we discussed to add the topics of Circular Economy and Fair Wages to our Action Plan, following indications of our stakeholders. In the spirit of continuous improvement, we will continue to review our 10FOR20 Targets on a regular basis.
We are convinced that our target-setting is now better integrated into our strategy. While, for example, in the past Health and Safety aspects have been part of the routine of compliance audits since 1999, they never had been measured beyond PUMA’s own entities in terms of injury rates or other key performance indicators. This information is taken into account now.
PUMA’s 10FOR20 Action Plan is our roadmap towards joint target achievement. Examples from the Action Plan are given in the following chapters.
Our targets are supported by our sustainability management system, which includes a new organisational structure, an updated version of the PUMA Code of Conduct (http://about.puma.com/en/sustainability/standards/coc), new PUMA Sustainability Handbooks (http://about.puma.com/en/sustainability/standards/handbooks), as well as several specialised databases for the collection of social, environmental, health and safety, and governance information.
To expand the reach of our efforts and to create maximum positive impact we have recently added core suppliers of components and materials to our data collection scope. Today, most of those databases – which we often share with our industry peers – are not limited to PUMA’s own entities but now reach deep into our supply chain. We use, for example, a customised version of the sustainability management software Enablon to collect social and environmental performance data of our company’s own sites, but also of our core suppliers engaged in the manufacturing of our products.
Table 1 gives an overview of our target performance. For a detailed summary of our progress towards our individual targets, please refer to the chapter for each target area.
The highest governance body at PUMA in terms of sustainability is the Sustainability Committee at Administrative Board (SE) level. The Board of Management reports to PUMA’s majority shareholder via this Committee. It is responsible for supervising PUMA’s sustainability strategy. The Sustainability Committee convened once in 2016. Current members of the Sustainability Committee are:
The organisational chart in figure 2 shows which functions within PUMA are involved in sustainability topics.
TARGET DESCRIPTION Continue and expand PUMA’s Stakeholder Dialogue and Public Non-Financial Reporting in accordance with global standards;
Increase sustainability communication towards consumers.
Relates to United Nations Sustainable Development Goal 17.
Example from the 10FOR20 Action Plan:
ACTION Transform country level supplier round tables into regional stakeholder meetings
• Thematic and regional coverage of partnership initiatives
• Percentage of suppliers reached via Round Table meetings
• Number of consumers reached with sustainability communication
PUMA continues to place strong emphasis on stakeholder dialogue and industry collaboration. Therefore, the PUMA sustainability team works with a number of national and international programmes and engages extensively with stakeholders and experts on a regional and international level.
Our main global industry initiatives include the Sustainable Apparel Coalition, the ILO/ IFC Better Work Programme, the Fair Labor Association, the Zero Discharge of Hazardous Chemicals Foundation, as well as the Apparel and Footwear Restricted Substances Management Group.
Furthermore, we partner with more material specific organisations such as bluesign technologies, the Leather Working Group, the Better Cotton Initiative, and the Forest Stewardship Council. Our global initiatives are supported by regional initiatives like the Bangladesh Accord on Fire and Building Safety, the Indonesia Protocol on Freedom of Association, or working with the Chinese National Apparel and Textile Council on wastewater quality, as well as joining forces with the UNHCR on promoting legal employment for Syrian refugees in Turkey.
In addition, we partner with the German Partnership for Sustainable Textiles and are a member of the World Federation of the Sporting Goods Industry.
Examples of active stakeholder engagement under the lead of PUMA on a corporate level include our Talks at Banz, but also our regional supplier round table meetings, which we opened up for participation of external experts and stakeholders for the first time in 2016. 312 suppliers attended our round table meetings that addressed topics such as relevant legal updates, chemical management and PUMA’s sustainability strategy.
For more information on our stakeholder engagement please visit: http://about.puma.com/en/sustainability/stakeholders. Interested organisations and individuals can also register for our stakeholder communication list by sending an e-mail to firstname.lastname@example.org.
Constant communication with our stakeholders helps us to stay focused on our most material issues.
Therefore, we used the results of our existing Materiality Analysis and our supplier round table meetings as well as ongoing stakeholder dialogue when setting our 10FOR20 Targets to cover all sustainability-related material aspects.
Our most Material Aspects are covered by our 10FOR20 Sustainability Targets as listed below:
Moreover, we also covered the more business-related material aspects within our
Forever Faster brand transition:
September 2016: PUMA’s Sustainability Team meets with suppliers at the PUMAVision Headquarter to discuss current topics.