puma.safe environmental handbook volume...

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HANDBOOK OF ENVIRONMENTAL STANDARDS

2012

Volume 1-Environmental Management

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Foreword

At PUMA, we believe that our position as the creative leader in the Sportlifestyle industry gives us the opportunity

and the responsibility to contribute to a better world for the generations to come. A better world in our vision —

the PUMA.Vision — would be safer, more peaceful, and more creative than the world we know today. We believe

that by staying true to our values, inspiring the passion and talent of our people, working in sustainable, innovative

ways, and doing our best to be Fair, Honest, Positive, and Creative, we will keep on making the products our

customers love, and at the same time bring that vision of a better world a little closer every day.

At PUMA, we aim to bring our trading practices in line with the principles of sustainable development. We strive to

meet the requirements of the modern day without compromising the possibilities open to future generations. This

means that we do not just want to provide high-quality products, but it behoves us to ensure that these products

are manufactured in decent workplaces where human rights are respected and environmentally-friendly conditions

are maintained.

PUMA takes on its responsibility for everybody involved in this production process, whether a PUMA employee or

not. However, this responsibility cannot replace nor substitute the responsibility of our production partners within

their own manufacturing facilities. Our Code of Conduct expresses the expectations we have of our production

partners. The three PUMA.Safe Handbooks for Environmental volume 1 and 2, Social and Occupational Health &

Safety Standards elaborate in detail the practical criteria and steps required to implement this Code.

These guidelines do not necessarily represent the national laws of countries where products are manufactured. It is

the responsibility of our production partners to ensure that all minimum legal requirements on labor, health &

safety, environment and product safety are fully complied with. In these Handbooks, we make clear where our

standards may exceed local requirements and what we expect specific types of partners to meet. These handbooks

are subject to continuous and periodic updates, so suggestions and comments to improve these handbooks are

welcome.

By following these requirements and recommendations, our partners share our vision for a better world which

they help make real and palpable for thousands of workers and communities. PUMA takes this partnership of

shared responsibility seriously. We reserve the right to terminate business relations when a partner disrespects

and seriously violates the letter and spirit of our Code and policies.

Reiner Seiz

Chief Supply Chain Officer

Dr. Reiner Hengstmann

Global Director, PUMA.Safe

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Table of Contents

Foreword ......................................................................................................................................................................... 2

Introduction ................................................................................................................................................................. 4

SECTION ONE ................................................................................................................................................................... 6

1. PUMA Mission Statement & Environment Policy .................................................................................................. 6

1.1 Mission Statement.............................................................................................................................................. 6

1.2 Environmental Policy .......................................................................................................................................... 6

1.3 PUMA Policy against the Use of exotic Skins, Feathers and Mulesed Wool .......................................................... 8

1.4 PUMA Policy on the use of Nanotechnology ....................................................................................................... 8

1.5 Environmental Data Collection and Reporting ..................................................................................................... 8

SECTION TWO .................................................................................................................................................................. 9

Sustainability targets .................................................................................................................................................... 9

2.1Puma Sustainability Scorecard ............................................................................................................................. 9

2.2 Sustainable Consumption of Environment & Natural Resources........................................................................ 10

2.3 Reduction and Offsetting of Carbon Emission ................................................................................................... 10

2.4Global Reporting Initiative Sustainability Reporting ........................................................................................... 10

SECTION THREE .............................................................................................................................................................. 12

3. Environment Management Systems (EMS) ............................................................................................................. 12

3.1 Legal Compliance .............................................................................................................................................. 12

3.2 Plan-Do-Check-Act ............................................................................................................................................ 12

3.3 Reporting of Environmental KPIs ...................................................................................................................... 13

3.4 Sustainability Charter for own Entities and Suppliers ........................................................................................ 14

3.5 Corporate Environment Profit & Loss Accounting ............................................................................................. 14

SECTION FOUR ............................................................................................................................................................... 18

4. Environmental Key Performance Indicators ............................................................................................................ 18

4.1 Energy .............................................................................................................................................................. 18

4.2 Waste ............................................................................................................................................................... 20

4.3 Water Consumption ......................................................................................................................................... 29

4.4 Production Related Environmental Standards /Manufacturing RSL (MRSL) ....................................................... 33

SECTION FIVE ................................................................................................................................................................. 35

5. More Sustainable Products and PUMA S-Index ....................................................................................................... 35

5.1 Accepted Certifications ..................................................................................................................................... 39

5.2 Product Level E P&L .......................................................................................................................................... 39

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SECTION SIX ................................................................................................................................................................... 40

6. Sustainability Apparel Collection (SAC) ................................................................................................................... 40

6.1 Introduction to SAC .......................................................................................................................................... 40

Useful Links .................................................................................................................................................................... 42

APPENDIX ...................................................................................................................................................................... 43

UN Global Compact Principles .................................................................................................................................... 43

Sustainability Charters for Offices, Stores Warehouses ............................................................................................... 44

Sustainability Charter for Suppliers ............................................................................................................................ 47

Enablon Screenshots (Corporate and Supplier) ........................................................................................................... 47

Introduction

The protection of the environment through environmentally friendly production, in accordance with established

environmental and social standards has become an important topic in every industry, as well as in society in general.

With a mission statement to become the most desirable and sustainable sportslifestyle company worldwide, and as a

signatory of the United Nations Global Compact, PUMA SE is committed to setting an example on reducing the impact

on the environment, both from own entities and within the supply chain, as well as, the product usage and end of life

phase. The production of environmentally friendly products has thus become an essential part of our general business

practice. As opposed to the manufacturing industry, where most environmental problems occur in conjunction within

their own manufacturing process, PUMA SE requires that its worldwide suppliers, who are manufacturing PUMA

products, fulfil set environmental and social standards.

PUMA SE is seriously looking into all possible ways that will contribute to the protection and preservation of our

environment. While continuously optimizing the production process, PUMA SE also sets targets to improve all

environment footprints and mitigate negative impact to the world ecosystem brought about from the different product

divisions namely footwear, apparel and accessories. In 2010, PUMA set its first ambitious target on its ecological “paw

prints.” Besides its own entities, PUMA SE aims to bring down by 25% the CO2 emission, energy and water usage, and

waste generation per unit produced at our Tier 1 manufacturers by the end of 2015. Along with other targets, like 50%

of products being made from more sustainable materials, PUMA SE developed the 2015 Sustainability Scorecard as

shown in Figure 1. In this handbook, PUMA also presents the implementing policies and procedures on how we plan to

achieve those targets.

Apart from the 2015 Sustainability Scorecard, the PUMA Eco-table also gives a description of PUMA’s general

sustainability initiatives on a product level. In addition to this handbook, the PUMA.Safe Handbook of Environmental

Standards, Volume 2: Chemical Management, outlines the company’s guidelines for the regulation of harmful

substances in PUMA products that must be followed by all employees and factories that are involved in the production

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of PUMA products. PUMA SE pursues exclusive contractual relationships with licensees and factories that have agreed

to comply with the guidelines set out in the PUMA.Safe Handbook of Environmental Standards, Volume 1 and 2 as well

as the Social and Health and Safety Standards. All PUMA SE factories are contractually bound to pursue only business

relationships with subcontractors that are in compliance with these set guidelines and directives.

As a safeguard, harmful chemicals such as AZO-dyestuff, allergenic dyestuff, chromium VI, pentachlorophenol, organotin

compounds, formaldehyde and heavy metals are no longer being used. These chemicals along with those known to be

persistent, bio-accumulative and toxic to the environment will be phased out by PUMA in its product and production

processes. The constant observance of Social, Environmental and Health & Safety standards are and will remain an

integral part of PUMA SE company policies. To ensure the successful implementation of these standards, PUMA SE has

produced three official handbooks, the Social Standards Handbook, Occupational Health & Safety Handbook, and this

Environment Handbook volume 1 and 2 listing the company policies and requirements for all suppliers, manufacturers

and partners. These handbooks are based on four essential pillars:

1. All social, environmental and health & safety standards, as well as legal threshold limit values, are to be fully

observed. PUMA SE will not accept breaches of legal requirements or PUMAs internal standards. The company

reserves the right to ensure that these standards and values are met by implementing auditing and testing

procedures. PUMA SE has the right to claim compensation, should the standards and values be overlooked or

ignored.

2. PUMA SE demands full observance of internationally recognized human rights and ILO Core Labor Standards, as

established in the PUMA.Safe Social, Environment and Occupational Health & Safety Handbook. All PUMA SE

partners and sub-contractors have to ensure a strict adherence and commitment to comply and implement set

standards.

3. All materials are to be tested prior to production to ensure the elimination of harmful substances in PUMA

products. Certified test results have to be submitted to PUMA.Safe on a regular basis.

4. PUMA.Safe reserves the right to audit its suppliers and their subcontractors to verify compliance with the

policies and standards set forth in PUMA.Safe Handbook of Social, Environmental v.1 and v.2 and Occupational

Health & Safety Standards.

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SECTION ONE

1. PUMA Mission Statement & Environment Policy

1.1 Mission Statement

PUMA’s mission is to be the most desirable and sustainable Sportslifestyle company in the world.

Sustainable in a way that PUMA puts in consideration the best interest and welfare of the workers who make PUMA

products, the consumer, the general public who use our products and the environment that provides the resources to

make our products. PUMA aim to do this while striving to make our business profitable in order to continuously provide

the best benefits for all of our stakeholders.

1.2 Environmental Policy

As part of our Corporate Mission Statement, Sustainability with its three dimensions Humanity, Ecology and Economy is

enormously important for PUMA and we recognize that the protection of the environment is an ongoing process and

challenge. In our aim to carry out more sustainable activities we strive to effectively comply with local and international

environmental legislations, be transparent to our stakeholders regarding the environmental impact, and to continuously

improve our performance. Our environmental policy applies to all of our branches worldwide and we request our

suppliers and service providers to adopt the same principles.

The key points of our policy are:

• Ensure compliance to all legal regulations both at PUMA and our business partner and setting standards that

go beyond legal requirements

Enforcing the highest environmental standards benefits PUMA economically by avoiding the risks associated

with illegal non-compliance, being prepared in time for any new regulations and by maintaining a frontrunner

position to generate a positive momentum on environmental issues within the company and our stakeholders.

• Fully integrate the Environmental Policy into the Corporate Strategy and align with Key Stakeholders

Sustainability cannot be achieved by an individual department or brand alone, it requires all the individuals and

stakeholders involved to serve a common goal.

• Find Win-Win Solutions for both Financial and Environmental Interests

We are convinced that in the long term our reduction targets on CO2, energy, water and waste, both corporate-

and production-related, will generate financial savings through reducing resources’ consumption. Our efforts,

combined with a more sustainable product offering, will also help to keep PUMA staff and consumers loyal and

to generate new consumers while reducing PUMA’s impact on the Environment.

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• Communicate the Environmental Policy to different levels of PUMA’s Organization and main Stakeholders

After setting our standards, we aim to effectively communicate its content amongst all persons working for or

on behalf of PUMA, in order to, raise awareness and enlist support in improving our environmental performance

within all divisions of PUMA, our business partners and consumers.

• Strive for Continuous Improvement

We strive to undertake more sustainable activities and produce more sustainable products of which are

continuously monitored against set targets.

We set specific steps to reduce and prevent our environmental impact. The targets we pursue to achieve include the

following:

� Use energy as efficiently as possible

� Continue to offset the CO2 Emissions from our own offices, warehouses and stores worldwide

� Work towards becoming a paperless company

� Minimize waste, reuse and recycle rather than traditional disposal methods

� Conserve, reuse and recycle water through the promotion of water recycling and rain water harvesting

� Prefer environmentally friendly products and services for own purchasing decisions

� Develop and offer environmentally friendly products to our customers and the consumer

� Minimize packaging and make essential packaging from more sustainable materials

� Meet or exceed all the environmental legislation that governs us

� Track, calculate and reduce the environmental impact generated by our activities

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1.3 PUMA Policy against the Use of exotic Skins, Feathers and Mulesed Wool

With this policy we, PUMA SE, declare that we do not source or process raw materials from any endangered species as

being defined by the International Union for Conservation of Nature, IUCN.

Our policy also prohibits using leathers, hides and/or skins from animals that have been treated inhumanely. PUMA SE

does not distinguish here whether these animals are wild or farmed. In addition, PUMA SE, does and will not use any

animal fur in its products globally.

In particular the following listed items are not being used;

• Furs, hides or skins from exotic animals like crocodiles, snakes, sharks or fish

• Downs and feathers that are plucked from living geese or birds

• Merino wool from sources where mulesing practices are still applied, regardless of the country of origin

For further information on endangered species, please see the following links:

http://www.iucnredlist.org/news/iucn-red-list-site-made-easy-guide

http://www.cites.org/eng/disc/how.php

1.4 PUMA Policy on the use of Nanotechnology

Following PUMAs commitment to phase out all hazardous substances until 2020 and use the precautionary principle,

PUMA will not use any nanotechnology applications unless such applications are analyzed and proved to have no

potential impact on human health and the environment.

1.5 Environmental Data Collection and Reporting

In cooperation with our French parent company PPR, PUMA uses the environmental software tool Enablon for regular

collection of environmental performance data from both own entities as well as main PUMA suppliers.

By regularly completing web-based questionnaires on the usage of energy, water and paper as well as the creation of

waste, all PUMA offices, stores and warehouses worldwide are held accountable for their environmental performance.

This data collection also forms the basis for PUMAs internal management system as well as the data presented in the

Annual Financial and Sustainability Report.

Acknowledging the fact that the majority of the environmental impacts of PUMAs overall environmental footprint is

created in the supply chain, PUMA includes all major Tier 1 and exemplary Tier 3 suppliers into the regular data

collection process.

For more information on the data collection procedure, please refer to the PUMA.Safe Handbooks on Enablon data

collection as well as the Environmental Protocol from PPR.

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SECTION TWO

Sustainability targets

2.1Puma Sustainability Scorecard

Figure 1: Sustainability Scorecard 2015 (Version 1)

Puma’s comprehensive and ambitious targets to reduce our environmental impact and become more sustainable can be

encompassed in the PUMA Sustainability Scorecard above.

The PUMA Sustainability Scorecard 2015 summarizes our targets at a corporate, supplier and product level.

Following a holistic approach starting from product design, covering the raw material selection and manufacturing

processes, the scorecard lists the company targets including product packaging, more sustainable products, as well as

waste reduction through design for recycling.

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Leading by example, PUMAs owned and operated entities are obliged to meet the same ambitious reduction targets set

for suppliers and logistic service providers.

In addition, corporate environmental accounting is used to quantify the external damage and benefits caused by PUMAs

business activities. The PUMA Environmental Profit & Loss Account not only puts a price tag on nature’s services, but

also provides a useful tool to identify where the largest environmental impacts lie and consequently how those can be

optimized.

2.2 Sustainable Consumption of Natural Resources

PUMA encourages own employees and suppliers to efficiently use natural resources like energy, water and materials.

Therefore, PUMA set its target of reducing the consumption of energy and water by 25% by 2015 from 2011 baseline

data. Likewise, in order to promote efficient use of materials, PUMA also aimed to reduce its waste generation by 25%.

These 2015 targets currently apply to PUMA’s strategic Tier 1 suppliers. We also aim to include key fabric mills, leather

tanneries and other high impact supply chain operations in the coming years. PUMA supports its suppliers in this effort

through capacity building projects which include the optimization of production operations and Cleaner Production

Technologies.

For an example on such capacity building projects, please visit

http://puma-conserv.org

2.3 Reduction and Offsetting of Carbon Emission

Apart from energy, water and waste, PUMA also aims to reduce the carbon footprint of its suppliers by 25% in 2015.

While energy consumption is directly linked to emission of carbon, PUMA encourages suppliers to tap renewal energy

sources to curb down carbon footprints. PUMA is an active participant with the Carbon Disclosure Project and has

been offsetting the carbon footprint (Scope 1 and 2 according to Greenhouse Gas protocol) for its owned and operated

entities since 2010.

2.4Global Reporting Initiative Sustainability Reporting

PUMA has been publicly reporting its sustainability performance in accordance with the Guidelines of the Global

Reporting Initiative since 2004, and to the highest application level of A+ since 2007. Starting from 2010 onwards,

PUMAs Sustainability and Financial reporting has been merged into one central report.

Expanding transparent sustainability reporting into the supply chain, PUMA continues to develop its partnership with

the Global Reporting Initiative (GRI) through the Global Action Network for Transparency in the Supply Chain (GANTSCh).

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Within the course of this project, strategic PUMA suppliers throughout all major PUMA sourcing regions successfully

complete a GRI Certified training course, received further support from expert consultants and published their own GRI

Sustainability Reports.

The GANTSCh project helps to further integrate the concept of sustainability into the supply chain, acts as a

measurement tool for the overall supplier’s performance and also provides a communication platform to demonstrate

supplier initiatives and challenges in the field of sustainability.

For exemplary PUMA Supplier Sustainability Reports please visit:

https://www.globalreporting.org/reporting/reporting-support/support/multinationals/Pages/Puma.aspx

For the PUMA Annual Financial and Sustainability Report, please visit:

http://www.puma-annual-report.com/en/

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SECTION THREE

3. Environment Management Systems (EMS)

Environmental Management Systems (EMS) are an important vehicle for improving environmental performance by

providing various types of organizations with the necessary tools to successfully manage their environmental activities

and initiatives.

3.1 Legal Compliance

Full Legal Compliance forms the basis of every EMS. In most countries, official permits are necessary as proof of

compliance with legal requirements. For different production processes, different permits may be required, for example

a discharge permit for dye houses or an air emission permit for factories which operate a large scale boiler or electric

power generator. Thus it depends on the type and size of production which requirements must be complied with.

Typically, permits cover air emissions, effluents and legal waste disposal, which apply for both normal and hazardous

waste. The following permitting documents must be secured by PUMA entities and supplier factories where applicable

and as required by local laws:

• Environmental Impact Assessment (EIA)

• Environment Compliance Certificate (or its exemption) as justified by the EIA

• Related Permit to Operate a Business following clearance of complying with relevant Environment Protection

and Pollution regulations.

• Environment Permit to Operate Wastewater Treatment facilities

• Environment Permit to Air Emission Sources (e.g. Boilers, Power Generators, Dust Collector, Onsite Incinerator,

etc.),

• Environment Permit or Clearance for Transport and Disposal of Solid Waste

• Environment Permit for Storage, Transport and Disposal of Hazardous Waste

• Other Environment Permit required by National Environmental Laws

The PUMA.Safe team expects suppliers to keep up to date with all relevant environmental legislation and act accordingly.

To ensure that a factory is in compliance with the local legislation and in accordance with the PUMA.Safe standards, an

inspection of written environmental permits forms part of the PUMA.Safe Audit, which is a precondition for every

supplier’s production authorization.

3.2 Plan-Do-Check-Act

Besides PUMAs own operations, all PUMA suppliers shall implement a sound Environmental Management System to

ensure legal compliance, effective implementation of an environmental program as well as to achieve continuous

improvement. In this regard, PUMA encourages suppliers to secure a certified EMS program like ISO 14001 and/or the

EU Eco-Management and Audit Scheme EMAS.

For more information on the above certified EMS programs:

http://www.iso.org/iso/iso14000

http://ec.europa.eu/environment/emas/index_en.htm

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The implementation of a certified EMS is especially recommended for large suppliers as well as those which are deemed

to have substantial environment impact such as factory operations involving wet processes or suppliers employing more

than 1000 employees.

Basically, an EMS implements a system that is geared to achieve continuous improvement following the PDCA concept:

Figure 2: Plan Do check Act (from the Vietnam CONSERV project)

3.3 Reporting of Environmental KPIs

In order to measure and monitor progress as well as to properly manage its environment footprint, PUMA established

its Environmental Key Performance Indicators (e-KPIs) in terms of energy, water, CO2 and waste per unit of products,

square meter of buildings used or per staff full time equivalent (FTE).

To facilitate a regular data collection, from key suppliers worldwide and to enable monitoring, tracking and publishing

of the E-KPI performance in its Annual Financial and Sustainability Report, PUMA and its suppliers use the online

platform Enablon for regular data collection.

For results of the PUMA E KPI data collection, please refer to the PUMA Annual Financial and Sustainability Report:

http://www.puma-annual-report.com/en/

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3.4 Sustainability Charter for own Entities and Suppliers

In order to give our offices, stores, warehouses and factories a tool to identify easy improvements in the field of

environmental protection, the PUMA.Safe team has developed sustainability charters for those sites.

The site management is encouraged to fill in the charter, thereby indicating which actions have already been taken and

which are being worked on by displaying a signed charter at the buildings entrance or reception.

Figure 3: Exemplary Sustainability Charter for Offices

3.5 Corporate Environment Profit & Loss Accounting

At PUMA we understand the importance of healthy ecosystems to the future of our business and also recognize that we

have to be accountable, ethical and responsible to our environment. Towards the end of 2009 we embarked on a

journey to develop an enterprise and supply chain-wide view of our environmental impacts in monetary terms, so that

we could take these impacts into account strategically and embed them in our business decision making processes.

All business operations and supply chains depend on nature for services such as fresh water, clean air, healthy

biodiversity and productive land. PUMA’s Environmental Profit and Loss Account (E P&L) is the first attempt to measure

the immense value of these services to a business, and the true costs of a business’s impacts on nature.

The E P&L measures and values both reductions in ecosystem services and increases in environmental impacts which

occur as a result of PUMA’s operational and supply chain activities.

Definition

An Environmental Profit & Loss Account is a means of placing a monetary value on the environmental impacts along the

entire supply chain of a given business.

Profit

Activities that benefit the environment.

Loss

Activities that adversely have an impact on the environment.

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Environmental impact

A change in the make-up, functioning, or appearance of the environment. For example, greenhouse gases (GHGs)

contribute to climate change which is associated with a range of environmental impacts such as reduced crop yields,

changes in water availability and increases in extreme weather. Waste disposal results in GHG emissions as well as

environmental impacts from leachate which can affect water courses and local disamenity impacts caused by dust, noise

and odor.

By reporting the results of the E P&L we are being transparent about the extent of our environmental impacts. We

believe this will provide a basis for more meaningful, evidence-based engagement with our stakeholders and enable us

to demonstrate clearly the impact of our activities to reduce our impacts.

Ultimately, the E P&L will enable us to make better, more informed business decisions that take account of

environmental impacts as well as more traditional financial and operational considerations.

Through placing a monetary value on our environmental impacts we sought answers to several important questions:

• How can we help our employees, shareholders and our suppliers understand the magnitude and importance of

our impacts on the environment?

• How can everyone in the business grasp the significance of the amount of CO2 released, the impacts of land

conversion required to provide raw materials, or the volume of water consumed and factor this into day to day

decision making?

• Relative to one another, which are our most significant environmental impacts?

• Where in our supply chain should we focus our resources to reduce our environmental impacts?

• How can we help others understand the challenge of reducing our environmental impacts, and the work we are

doing to manage them?

We recognize that we must account for the cost of nature in our day to day business decisions. Most people in the

business and among our suppliers are not familiar with the language of sustainability and often struggle to put figures

such as tones of GHG emissions and cubic meters of water into context.

We chose to convert our environmental impacts into monetary terms to make them digestible and meaningful to a

much wider audience. In doing so we believe we have shed light on the true scale of our impacts, and enabled simpler

communication of their implications.

The results of our corporate E P&L clearly show that the vast majority of environmental impacts are originating in the

supply chain, and here particularly the raw material stage (please refer to the results figure below).

While PUMA has also published an E P&L for selected products and aims to release a corporate level E P&L regularly

going forward, the first results clearly reinforce the need to focus on the raw material stage of the supply chain. As

indicated in figure 5, Tier 4 or the production of raw materials represent 57% of all calculated costs to the environment,

while PUMAs own operations (including transport of products from country of manufacture to selling markets) add up to

only 6% of the total environmental cost calculated.

For a full report on the PUMA E P&L, please visit

http://about.puma.com/sustainability/

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Figure 4: PUMA Supply Chain taken into account for the E P&L

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Figure 5: Results of the first PUMA E P&L covering the year 2010

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SECTION FOUR

4. Environmental Key Performance Indicators

4.1 Energy

4.1.1 Legal Compliance:

All energy related machinery needs to be in compliance with local legislation. This applies to both a health and safety

aspect (please refer to the PUMA.Safe Health and Safety Handbook for further details) and an environmental aspect.

Here particularly large boiler operations, coal burners, etc. need to be registered with the local environmental

authorities and follow standards on air emissions, safe storage of fuels, etc.

4.1.2 Targets

The PUMA Sustainability Scorecards sets a target of 25 % reduction for both energy and CO2 emissions for PUMA direct

suppliers but also offices, warehouses and stores between 2010 and 2015.

4.1.3 Carbon footprint and energy efficiency

During the last years energy costs have risen dramatically. At the same time there is a political, as well as, a social focus

on the impact of CO2 emissions and climate change. To reduce both energy costs and CO2 emissions, energy efficiency

programs should be run in every factory, as well as, in larger offices, warehouses and stores.

A first step towards increasing energy efficiency is to measure and analyze the energy consumption and to consider in

which areas energy saving measures are feasible.

Simple measures such as, switching machines off when not in use, or using energy efficient lighting have proven to be

highly profitable at relatively low or no investment cost.

Another option is to optimize the heating and cooling of buildings. Typically, air conditioners or heating systems can be

adjusted in a range to fit the outside temperature (for example 23 instead of 20 degrees Celsius inside at an outside

temperature of 30 degrees Celsius) rather than just run on maximum power, with a beneficial effect on energy

consumption. Taking this aspect further, a good insulation of buildings helps to save energy used for heating and cooling.

Furthermore, waste heat from the production process may be used for heating purposes of the building as well as

natural ventilation or evaporation cooling effects for energy efficient cooling.

4.1.4. Best Practice

A good practice example is the PUMA headquarter PUMA Plaza in Herzogenaurach, Germany. Concrete core

temperature control is used to efficiently heat and cool the buildings. Three photovoltaic power systems generate

around 150,000 kWh of electricity per year and thus help save 75 tonnes of CO2 per year while at the same time

generating considerable financial income as the generated power is sold into the public grid. Besides this, all electricity

purchased from the public grid runs under a renewable energy tariff, making the whole office Carbon Neutral in terms of

electricity consumption. Censors, which turn off lights automatically if employees are not at their desks or in stairways,

were installed to save electricity. Heating required during winter times is generated with a combined heat and power

plants, party using landfill gas as fuel.

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Such good practices are, however, not limited to PUMAs Headquarter. Our leading suppliers have started to implement

similar actions.

4.1.4.1Milteks, Georgia

In 2011 Milteks, one of PUMAs key partners in Europe for Teamsport knits, set the benchmark for renewable energy

usage. An old Water Turbine from 1948 was renovated within one year with a capacity of 876.000 kWh per year to cover

total energy consumption for their nearby factory. After one year of renovation, the water turbine, river bed recovery

and cleaning of a 650mt canal and 30mt penstock, the water power was enough to generate electricity for the factory

with a total capacity of 876,000 kWh per year. The hydro power station went live in 2012, and feeds enough electricity

into the public grid to offset their entire factory’s electricity consumption.

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4.1.4.2 Impahla, South AfricaPhoto: Solar power station and William Hughes, Managing Director Impala Clothing.

Impahla Clothing, PUMAs exclusive garment maker in South Africa producing cotton knit and woven products, has taken

the lead in powering production processes using solar power. The 30 kWpeak Photovoltaic construction is connected to

the internal electrical system and provides 25% of required electricity to the production plant without using any

batteries. The grid-tied system is stable and feeding in the electricity power as needed with a total amount of 48.5 MWh

per year. The project was co-funded by the ‘Green Energy Efficiency Fund’ by IDC (Industry Development Corporation,

South Africa). The power plant was launched on 22 May 2012 with the presence of Helen Zille, the premier of the

Western Cape.

4.1.4.3 BP Bags, China

BP Bags, a key bag supplier with now 3 factories in China is a leader in sustainability within the accessories division. They

have installed solar thermal systems for generating hot water on two of their factories’ dormitory roofs. LED lighting was

installed in all their offices and energy efficient lighting now lights their production floors. BP bag also invested into

water cooling curtain systems, which use considerably less energy compared to conventional air conditioning, for

reducing the indoor temperature during the hot summer months on the production floor. Their latest facility in Hunan,

north of Guangdong province, was also equipped with an energy efficient air conditioning and lighting system on the

production floor and a solar thermal system.

4.2 Waste


All waste disposal or recycling efforts must meet legal requirements. This includes the usage of officially authorized

waste and recycling contractors only. Specific standards apply for wastes classified as hazardous waste. Please refer to

the section on hazardous waste below.

Under no circumstances should waste from PUMA suppliers or PUMA entities end up in illegal landfills, dumped into

rivers or burned illegally on factory premises or elsewhere.

4.2.2 Targets

The PUMA Sustainability Scorecards sets a target

but also offices, warehouses and stores between 2010 and 2015.

All waste at a certain point of time was purchased as a valuable good or raw material. Ther

that waste minimization makes perfect business sense.

Waste can be classified according to the physical and chemical parameters in

solid waste, liquid waste but also waste which can be re

In accordance with the principles of zero waste or Cradle to Cradle

least used for energy recovery wherever possible.

4.2.3 Hazardous Waste

Hazardous waste is special type of waste that cannot be disposed of by common means like normal waste

could pose substantial or potential threats to public health and/or the environment

of gas, liquid or solid. The US EPA defines hazardous wastes as materials that are known or tested to exhibit hazardous

characteristics such as:

• Flammable. Flammable or ignitable waste can cause fire under certain conditions and spontaneously

combustible or have a flash point less than 60

• Reactive. Waste that are unstable under normal condition and can cause explosions, toxic fumes, gases or

vapour when heated, compressed or mixed with water. Examples are lithium

• Corrosive. Acid waste with pH less than or equal to 2 and bases with pH greater than or equal to 12.5 that are

capable of corroding metal containers such as storage tanks, drums and barrels.

• Toxic. Waste that are containing

are expected to cause injury or illness to human health or harm to the environment.

toxic

Factories must comply with all International and National laws related to Storage, Handling, Transport and Final Disposal

of hazardous waste. In many countries, companies are required to register the type and quantity of hazardous waste

that are being generated from their operat

hazardous waste. National environment authorities also require a legitimate and duly authorized hazardous waste

transporter as well as a legally authorized hazardous waste disposal

suppliers to comply with these relevant hazardous waste regulations.

4.2.3 Solid (Non-Hazardous) Waste


rivers or burned illegally on factory premises or elsewhere.

ecards sets a target of 25% reduction of waste sent to landfill

but also offices, warehouses and stores between 2010 and 2015.

All waste at a certain point of time was purchased as a valuable good or raw material. Ther

that waste minimization makes perfect business sense.

Waste can be classified according to the physical and chemical parameters into hazardous waste, non

solid waste, liquid waste but also waste which can be re-used or recycled or waste which has to be disposed off.

In accordance with the principles of zero waste or Cradle to Cradle™ all waste should be avoided, re

least used for energy recovery wherever possible.

is special type of waste that cannot be disposed of by common means like normal waste

pose substantial or potential threats to public health and/or the environment. Hazardous waste can be in the form

defines hazardous wastes as materials that are known or tested to exhibit hazardous

Flammable or ignitable waste can cause fire under certain conditions and spontaneously

combustible or have a flash point less than 60oC. Examples are waste oil and used solvents.

. Waste that are unstable under normal condition and can cause explosions, toxic fumes, gases or

vapour when heated, compressed or mixed with water. Examples are lithium-sulphur batteries and explosive

Acid waste with pH less than or equal to 2 and bases with pH greater than or equal to 12.5 that are

capable of corroding metal containers such as storage tanks, drums and barrels.

Waste that are containing concentration of certain substances that exceeds regulatory threshold which


corrosive flammable

ith all International and National laws related to Storage, Handling, Transport and Final Disposal

In many countries, companies are required to register the type and quantity of hazardous waste

that are being generated from their operations. Every factory is also required to have trained personnel to handle


transporter as well as a legally authorized hazardous waste disposal and treatment facility. PUMA strictly requires all

s to comply with these relevant hazardous waste regulations.

21


to landfill for PUMA direct suppliers

All waste at a certain point of time was purchased as a valuable good or raw material. Therefore, it goes without saying

hazardous waste, non-hazardous waste,

cycled or waste which has to be disposed off.

all waste should be avoided, re-used, recycled or at

is special type of waste that cannot be disposed of by common means like normal waste as it can or

. Hazardous waste can be in the form

defines hazardous wastes as materials that are known or tested to exhibit hazardous

Flammable or ignitable waste can cause fire under certain conditions and spontaneously

. Examples are waste oil and used solvents.

. Waste that are unstable under normal condition and can cause explosions, toxic fumes, gases or

sulphur batteries and explosives.

Acid waste with pH less than or equal to 2 and bases with pH greater than or equal to 12.5 that are

capable of corroding metal containers such as storage tanks, drums and barrels. An example is battery acid.

concentration of certain substances that exceeds regulatory threshold which


reactive

ith all International and National laws related to Storage, Handling, Transport and Final Disposal

In many countries, companies are required to register the type and quantity of hazardous waste

ions. Every factory is also required to have trained personnel to handle


and treatment facility. PUMA strictly requires all

22

The increasing volume of waste during manufacturing processes as well as missing regulations for the treatment and/or

disposal of the waste in developing countries has to be seen as a significant risk for the future. The occurrence of waste

cannot be avoided in most of the production phases but the reduction of waste should be considered for all

manufacturing steps. All parties involved in the production of PUMA products should take measures to encourage the

options that deliver the best overall environmental outcome.

Figure 6: Waste Hierarchy

4.2.3.1 Prevention:

Waste prevention is closely linked with improving manufacturing methods and influencing consumers to demand

greener products and less packaging. It is important that before a production process will be planned and finally

implemented, the generation of waste during this will be taken into account. Possible ways have to be taken into

account to discuss the avoidance of at least a certain percentage of the waste.

4.2.3.2 Reuse

Means any operation by which products or components that are not waste are used again for the same purpose for

which they were conceived. Reuse also means using items as many times as possible, which helps to save resources. In

case there are fewer possibilities for the avoidance of the waste during the production process, opportunities for

utilization have to be taken into account. Meaning, possibilities for the reuse of remaining production left-over like

cartons, plastics etc., in a respective and responsible manner.

23

4.2.3.3 Recycling

Means any recovery operation by which waste materials are reprocessed into products, materials or substances

whether for the original or other purposes. It includes the reprocessing of organic material but does not include energy

recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations.

4.2.3.4 Energy Recovery

Energy recovery from waste is the conversion of non-recyclable or reusable waste materials into useable heat, electricity,

or fuel through a variety of processes, including combustion, gasification, pyrolization, anaerobic digestion, and landfill

gas (LFG) recovery. This process is often called waste-to-energy (WTE). Waste-to-energy meets the two basic criteria for

establishing what a renewable energy resource is—its fuel source (waste) is sustainable and indigenous. Waste-to-

energy facilities recover valuable energy from waste after efforts to “Prevent, Reuse, and Recycle” have been

implemented.

4.2.3.5 Landfill & Incineration without energy recovery

If none of the above possibilities are feasible to use, the only final way for the waste treatment will be the disposal or

the incineration of the waste. Therefore, it is important to recognize that the disposal of waste to landfills can only be

seen as a temporary solution because physically it is only a movement of the waste to another place. In case landfills will

be used for the final disposal of the waste, it has to be sure that these landfills will be safeguarded to avoid any

migration of harmful substances into the ground. Incineration without energy recovery, on the other hand, is not

encouraged because it totally destroys the material removing the possibility of recovering its remaining value.

In any case, all relevant laws and regulations of the applicable country have to be followed and the disposal route of

waste must be entirely documented by official waste contracts or invoices. Following this procedure is even more

important for any hazardous waste which may be generated.

4.2.4 Waste reduction, re-use and recycling examples

Depending on the type of production there are many existing good practices on how to minimize waste to landfill or

incineration and focus on material efficiency or re-use and recycling instead:

4.2.4.1 Reduce: Increase marker efficiency to minimize cutting waste

Use of automated cutting systems to minimize cutting waste

Optimized fabric orders to minimize the amount of unused fabric

4.2.4.2 Reuse: Reuse the unused fabrics for other production

Reuse of fabric cut-outs for other purposes (smaller items or as filling for

cushioning, etc.)

Reuse of cones from yarn manufacturer

Reuse of cardboard boxes for sending out products

Reuse of wooden pallets

4.2.4.3 Recycle: Recycling of fabric off-cuts into recycled cotton or recycled polyester

Recycling of cardboard boxes and paper from offi

Usage of organic waste from canteens to generate compost or natural gas

Recycling of metal parts (old machinery, needles) into new metal usage

Recycling of plastic foil or bags by manufacturer or specialized recycling

4.2.5 Benchmarks

4.2.5.1 Reuse, reduce, recycle – Alliance

One of the outstanding projects about waste management has been

Alliance One. The RRR principle was launched with a big event day where workshops were held and training offered to

all people responsible for waste sorting in different departments. Every department wa

waste production/reduction with a dedicated Sustainability team to do random checks to monitor if proper handling

procedures were being followed. In order to continuously create awareness

shirt must be worn by the responsible person in each department. The whole procedure is described and noted in the

waste management policy and the organizational structure has been implemented accordingly.

4.2.5.2 Fabric waste recycling: Valley in

Reuse of cones from yarn manufacturer

Reuse of cardboard boxes for sending out products

Reuse of wooden pallets

cuts into recycled cotton or recycled polyester

Recycling of cardboard boxes and paper from offices into recycled cardboard/paper


Recycling of metal parts (old machinery, needles) into new metal usage

Recycling of plastic foil or bags by manufacturer or specialized recycling company

Alliance One, Vietnam

One of the outstanding projects about waste management has been initiated by one of our


all people responsible for waste sorting in different departments. Every department was made responsible for their own


procedures were being followed. In order to continuously create awareness - once a week (Friday)



4.2.5.2 Fabric waste recycling: Valley in El Salvador

24

ces into recycled cardboard/paper


company

initiated by one of our apparel factories in Vietnam:


s made responsible for their own


once a week (Friday) - the green RRR T-



Valley, one of PUMAs main suppliers in El Salvador is not only separating waste into different categories for

service providers, but they also look into partnerships in order to make new products out of the waste. Within the

company’s strategy all cutting waste is sorted into cotton and polyester materials and also into their respective colors.

Each color is pressed into bales and shipped to the next stage of production

material. The polyester waste is sent to a carpet maker

cutting waste per month can be used to

4.2.5.3 Waste Segregation- Awan Sports, Pakistan

One of our football suppliers in Pakistan i

easily noticeable around the factory grounds and the bright color bins are

and sorts of waste has been identified a

employee’s training.

suppliers in El Salvador is not only separating waste into different categories for


ny’s strategy all cutting waste is sorted into cotton and polyester materials and also into their respective colors.

Each color is pressed into bales and shipped to the next stage of production - for cotton

yester waste is sent to a carpet maker in order to produce rugs out of it. In this way the 1

cutting waste per month can be used to create new quality products out of it.

Awan Sports, Pakistan

suppliers in Pakistan implemented a detailed and colorful waste management system.

easily noticeable around the factory grounds and the bright color bins are easy to differentiate.

been identified and are presented in details in their offices. Waste sorting is part of the new

25

suppliers in El Salvador is not only separating waste into different categories for disposal by


ny’s strategy all cutting waste is sorted into cotton and polyester materials and also into their respective colors.

for cotton, new yarn is created out of the

in order to produce rugs out of it. In this way the 1.5 tons of

mplemented a detailed and colorful waste management system. Posters are

to differentiate. Each type of materials

nd are presented in details in their offices. Waste sorting is part of the new

26

4.2.6 Waste Water

4.2.6.1 Wastewater Effluent Standards

Before the final discharge of wastewater into the public sewer system the water has to be controlled according to the

National laws set forth by the corresponding governments.

Figure 9: Under no circumstances should wastewater be directly discharged into natural water bodies (including ground

water) without proper pre-treatment.

The table on the next page reflects a list of minimum parameters to be controlled by the factories. In case of an onsite

wastewater treatment plant, the discharge of the treated water has to be controlled according to the parameters

mentioned below and according to local environmental regulations. The following recommendations for the parameter

COD tot., the total Chemical Oxygen Demand, and BOD (the Biological Oxygen Demand) should be achieved for waste

water. These values are to be seen as recommendations only. All factories should follow the national environmental

regulations for the discharge of wastewater into the public sewer systems.

27

Figure 7: From “Environmental Standards in the Textile and Shoe Sector” published by the German Federal Environment

Agency

28

Figure 8: From “Environmental Standards in the Textile and Shoe Sector” published by the German Federal Environment

Agency

29

4.2.6.2 Zero Discharge of Hazardous Chemicals (ZDHC)

In 2011, a group of major apparel and footwear brands and retailers made a shared commitment to help lead the

industry towards zero discharge of hazardous chemicals (http://www.roadmaptozero.com/index.php) by 2020. PUMA

and other Participants published the release of a joint roadmap towards zero discharge of hazardous chemicals in the

supply chain. The roadmap is highly ambitious; it is a plan that sets a new standard of environmental performance for

the global apparel and footwear industry. It includes specific commitments and timelines to realize this shared goal.

The joint roadmap towards zero discharge can be found here: http://www.roadmaptozero.com/joint-roadmap.php

The current Joint Roadmap brands have developed The Governance Policies and Procedures:

http://www.roadmaptozero.com/pdf/3-July-2012_Final_ZDHCGovernance.pdf

The purpose of this Governance Model is to document and describe the roles, responsibilities, structures, and processes

that the ZDHC Program will abide by in order to support the ability of the members to work as a group to achieve its

2020 Joint Roadmap objectives. The Governance Model will support the delivery of the Joint Roadmap by providing day-

to-day instructions and processes that guide the ZDHC Program.

For more information, please refer to the PUMA.Safe Environmental Handbook Volume 2 – Chemicals Management and

to: http://roadmaptozero.com

4.3 Water Consumption

Water is a precious natural resource. Despite the fact

that the earth’s 3% volume of fresh water supply is a

renewable resource, the supply of clean, fresh water is

steadily decreasing as the world’s population

continues to rise. Awareness of the global importance

of preserving water needs to be strongly

communicated. Water conservation programs

including appropriate monitoring management,

efficiency improvements, accurate measurements and

constant savings should be implemented at all levels of

the supply chain.


All suppliers should have the necessary permits and licenses from their local authorities to extract and discharge water,

may it be from underground sources, surface water or public supply.

For more information on waste water discharges legal compliance documents, please consult the Handbook for

Environmental Standards Volume 2- Chemical Management.

30

4.3.2Targets

The PUMA Sustainability Scorecards sets a target of 25% reduction of water usage for PUMA direct suppliers but also

offices, warehouses and stores between 2010 and 2015. Water re-use and recycling as well as and rain water harvesting

is highly encouraged and can make an important contribution to the availability of fresh and clean water.

As for the T1 Suppliers; 25% Reduction of water usage for dye houses of vertically integrated suppliers is targeted.

4.3.2 Waste water treatment and water efficiency of dyeing mills

The largest waste stream from most textile mills involved in their washing, bleaching, and dyeing operations is

wastewater. Textile mill wastewater is often contaminated with process chemicals (dye, salt, bleach, detergent, etc.), oil

and energy from hot water discharges. (See the Handbook for Environmental Standards Volume 2- Chemical

Management for more details) As a result, wastewater discharge permit limits, such as BOD (biological oxygen demand),

COD (chemical oxygen demand), aquatic toxicity, and metals content, are often difficult to meet. Water usage in a

typical mill can easily top 1.5 Mio m³ per day costing more than $30,000 annually in water and sewer fees. Only 3 % of

the available water of the world is potable water, which has to be protected wherever possible.

Spills and cleanup can be a major source of water pollution. Process chemicals are stored, mixed, transported and spilled

unfortunately in most mills. Seemingly minor spills can have major impacts on wastewater. A spill of 5 pounds of salt will

contaminate 10,200 m³ of water. If a 50-pound bag of salt bursts during handling, 1.2 Mio m³ of water could be

contaminated.

If a liquid product is spilled, dry cleanup, using absorbent clay and sweeping, is a much better and safer solution than

thinking of washing it down the floor drain.

Water usage can be reduced in mills by making simple housekeeping changes in addition to process modifications.

A single hose left running will waste 27,200 m³ of water daily and cost more than $5,000 annually in increased water

usage. A very simple solution for example is to attach a spring loaded nozzle, costing less than $5, to the hose.

Leaks may also cause water inefficiencies in mills. Heavy use of salt, acid, and caustic often results in valve and piping

failure. Replacing steel valves and piping with plastic is a low-cost way to reduce leaks.

Process changes can make substantial reductions in water and energy use. Water flow through a rinsing process can be

reduced by 50% if counter current or two-stage rinsing is used.

4.3.3 Counter current rinsing

Counter current rinsing is a process where the "dirtiest" fabric contacts the "dirtiest" water first; clean water rinses the

fabric as it leaves the process. Continuous rinsing processes are usually designed with counter current rinsing. Batch

processes can be modified to use two-stage or multi-stage rinsing; water used for rinsing the previous bath is used to

provide initial rinsing of the next batch. This water is then discharged and clean water is used to provide final rinsing. A

two-stage process like this one may replace three separate rinsing cycles using clean water to achieve the same level of

cleanliness. There are many opportunities to reuse wastewater in a textile mill.

For example, final rinse water from dyeing can be used as make-up water for the dye bath. Final rinses from scouring

and bleaching may be used for makeup water in desizing. Wastewater from many sources may be suitable for washing

31

process equipment and floors (after sweeping or other dry cleanup). Some mills have reduced operating costs

substantially by installing water reuse systems.

Some dye-houses have successfully implemented heat exchangers in their wastewater stream and others realized a

closed water cycle by filtering and re-using their process water.

Suggestion for Pollution Prevention for Textile Mills- A Check List -

• Store dry materials, such as bags of salt or dye drums, off the floor and away from liquids by placing catch pans

beneath the material.

• Plug floor drains in material storage areas.

• Build curbs around storage areas to keep spills in and water out.

• Remove water supplies from storage areas.

• Use dry cleanup methods; provide brooms, vacuums, and absorbent.

• Provide suitable work areas, handling tools, and training to operators so they can avoid creating spills.

• Provide recipes for each mixtures.

• Provide measuring equipment, in addition to recipes, to operators.

• Optimize chemistry; correct temperature can reduce the use of salt and dye.

• One size does not fit all; use small volume equipment for small production runs.

• Place spring-loaded nozzles or timers on all water supplies to turn off when not used.

• Select valve and piping material to minimize corrosion and leaks.

• Avoid filling process equipment with water from unmetered hoses; place meters on water supplies feeding

process equipment.

• Use counter current or multi-stage rinsing to reduce water use.

• Reuse wastewater from other processes that do not require high quality water.

• Test incoming water supply for minerals or chemicals that negatively affect the process.

Figure 11: Example of counter current rinsing in fabric dying process

4.3.4 Benchmarks

4.3.4.1 Rain water collection for toilet flushing at

To reduce water expenses, in 2010 PUMA Supplier

built 4 water storage tanks, 80m3 each to collect rain water

for toilet flushing (Please see the Picture

initiative saves the company money every month and

therefore, two more rain water holding tanks, 60m

under construction now. At a Sao Viet’s

are also building a rain water collection tank of 40m

same purpose.

4.3.4.2 Water recycling: Ningbo Shenzhou, China

Ningbo Shenzhou is one of PUMAs

vertically organized apparel partners in China

with a total capacity of 13 Mio pieces per

month. As water is one of the limited resources

in China, Shenzhou Ningbo has continuously

been investing into water recycling since 2005.

In 2011, the capacity has been increased up to

15,000 tons of recycled water every day, which

originates from the fabric washing process,

30% of water consumption in the fabric washing.

4.3.4.3 Rain water harvesting: Square Fashion, Bangladesh

In 2009, one of our key partners in Bangladesh has set up a rain water collection system with 2 ponds and the total

capacity of 8,389m³ of water. In

2010 the system was completed by

adding a Filtration Unit with a

capacity of 360m³ per day and treats

the water in order to use it for the

production of steam, used for

ironing and other purposes within

the manufacturing processes. The

amount of rain water usage depends on rain fall density and the total qty could be increased from 6,711m³ in 2010 (24%

of boiler water consumption) to 12,585m³ in 2011, which is almost 45% of the total water consumed by the boiler. The

total area contains 100,000 sqf on-site of the factory complex

4.3.4.1 Rain water collection for toilet flushing at Sao Viet - Vietnam

PUMA Supplier Sao Viet

each to collect rain water

for toilet flushing (Please see the Picture on the right). The

initiative saves the company money every month and

therefore, two more rain water holding tanks, 60m3 each are

Sao Viet’s sister company, they

also building a rain water collection tank of 40m3 for the

4.3.4.2 Water recycling: Ningbo Shenzhou, China

PUMAs key

partners in China

io pieces per

month. As water is one of the limited resources

in China, Shenzhou Ningbo has continuously

been investing into water recycling since 2005.

the capacity has been increased up to

er every day, which

from the fabric washing process, is treated in the recycling plant and used back in the process

30% of water consumption in the fabric washing.

4.3.4.3 Rain water harvesting: Square Fashion, Bangladesh

one of our key partners in Bangladesh has set up a rain water collection system with 2 ponds and the total


ater consumption) to 12,585m³ in 2011, which is almost 45% of the total water consumed by the boiler. The

site of the factory complex.

32

treated in the recycling plant and used back in the process to provide 25-

one of our key partners in Bangladesh has set up a rain water collection system with 2 ponds and the total


ater consumption) to 12,585m³ in 2011, which is almost 45% of the total water consumed by the boiler. The

4.4 Production Related Environmental Standards /Manufacturing RSL (MRSL)

In line with PUMA’s environmental policy and the PUMA.Vision, production related standards for the protection of the

environment supplement our Restricted Substances List

of the manual is also referred to as Manufacturing or (M) RSL which can be consulted in

Environmental Standards Volume 2- Chemical Management

4.4.1 Soil and ground water protection

Wastewater, chemicals, oils or other toxic liquid substances represent a risk

It is important to avoid migration of any of these liquids into the ground (see Figure

Those hazardous and toxic substances must be stored in a secondary containment.

areas and containers are designed and operated to minimi

areas should be located away from watercourses and sensitive boundaries,

public use and they should be protected against vandalism. These storage areas should be clearly marked

containers should be clearly labelled. All factories are urged to not exceed the maximum storage capacity of their

storage areas. It is important that containers be regularly inspected.

secondary containment, for example by using special paint to make the floor impermeable and building surrounding

bund walls. Alternatively, when secondary containment inst

all containers. It is the producer’s obligation to have emergency plans ready in the event of accidents or cases of

damaged or leaking containers.

The storage of open containers, even if empty,

with the rest of the chemicals and contaminate the soil, ground water or adjacent water

bounded and sealed, as explained above.

Figure 12: Migration of toxic substances into the groundwater, prevention through secondary containment

Production Related Environmental Standards /Manufacturing RSL (MRSL)

with PUMA’s environmental policy and the PUMA.Vision, production related standards for the protection of the

Restricted Substances List (RSL) policy and PUMA’s own environmental efforts.

to as Manufacturing or (M) RSL which can be consulted in

Chemical Management.

.1 Soil and ground water protection

oils or other toxic liquid substances represent a risk of contaminating

any of these liquids into the ground (see Figure 12

Those hazardous and toxic substances must be stored in a secondary containment. Factories

designed and operated to minimize the risk of any releases. To achieve this safeguard, storage

areas should be located away from watercourses and sensitive boundaries, as well as avoid being

they should be protected against vandalism. These storage areas should be clearly marked


that containers be regularly inspected. The whole storage area should be built as a


hen secondary containment installations are not possible, protection trays may be used for


The storage of open containers, even if empty, in an outside area should be avoided. Otherwise rainwater might mix

with the rest of the chemicals and contaminate the soil, ground water or adjacent water

bounded and sealed, as explained above.

f toxic substances into the groundwater, prevention through secondary containment

33

with PUMA’s environmental policy and the PUMA.Vision, production related standards for the protection of the

policy and PUMA’s own environmental efforts. This part

to as Manufacturing or (M) RSL which can be consulted in the Handbook for

minating the soil and ground water.

12) or the aquatic environment.

Factories must ensure that storage

e the risk of any releases. To achieve this safeguard, storage

as well as avoid being adjacent to areas of

they should be protected against vandalism. These storage areas should be clearly marked, signed and


The whole storage area should be built as a


allations are not possible, protection trays may be used for


in an outside area should be avoided. Otherwise rainwater might mix

with the rest of the chemicals and contaminate the soil, ground water or adjacent water-bodies. Any storage must be

f toxic substances into the groundwater, prevention through secondary containment

34

4.4.2 Oil Contamination

Minor oil spill and leakage are often the most unnoticed if not ignored in many factories or plants. This usually comes

from lubricants, fuel oil, etc. Oil contains hazardous and toxic chemicals such as heavy metal lead that can contaminate

the soil and ground water where drinking water might be extracted, which can pose a direct risk to human health. In

run-off, like in case of rain, the spilled oil will be carried into the public drainage system and ends up into the surface

water system like rivers and seas. Oil does not dissolve in water and it can form a very thin film on the water surface

and therefore a smaller amount of oil can pollute vast area of surface water. Apart from the toxic effect to aquatic

organisms, the oil film covering the surface of the water prevents natural biochemical process, like photosynthesis, from

happening and therefore endangers the aquatic ecosystem.

All factories should make all employees aware of the risks coming from improper handling of oil, oil spills and leakages.

All oil containers, big or small, should always be provided with secondary containment and prevent oil spill or leakage to

the ground or drainage at all times. It is even not advisable to allow oil to contaminate the wastewater stream even if it

will go to wastewater treatment facility because oil is not only difficult to remove from the water but will also affect the

physical-chemical process of wastewater treatment.

It is always advisable to contain all oil spill and leakage because even if oil is dirty, many technologies are available to

reprocess the oil and reuse it either as low grade lubricant or fuel again.

4.4.3 Air Pollution Control

All suppliers must be aware of and strictly follow the local regulations pertaining to air pollution. Depending on the type

and size of operations devices for the prevention of air pollution might be necessary. Typical examples would be:

• Filters for exhaust systems carrying volatile organic compounds (solvents);

• Dust filters for exhaust systems from dusty areas, e.g. knitting departments; outsole grinding or buffing in shoe

factories;

• Filters for larger burners, i.e. for steam generators or heating systems.

Regular checks on the quality of discharged air must be performed to ensure that all equipment is working properly. The

records from these checks should be kept for a minimum of two years.

35

SECTION FIVE

5. More Sustainable Products and PUMA S-Index

The PUMA E P&L revealed that over half (57%) of all environmental impacts are associated with the production of raw

materials such as leather, rubber or cotton in PUMA’s supply chain. More than ever we have started to identify more

sustainable materials to be used for our products in order to reduce the extensive environmental impact occurring at

the level of raw material production and processing.

In order to promote the usage of more sustainable materials and deliver an added value to both nature and the

consumers, PUMA has the developed the PUMA Sustainability Index or S-Index.

More Sustainable PUMA Products will only be awarded with an S-Index Icon from the PUMA Eco-Table (see graph below)

if they contain 50% or more environmentally or socially preferred materials and in addition are manufactured in a

supplier with a PUMA.Safe Audit rating of A or B+. Such an audit rating ensures that only very proactive or proactive

suppliers in terms of social, health & safety and basic environmental standards are used for the manufacturing of S-

Index approved products.

Please find below an overview of environmentally or socially preferred materials accepted under the PUMA S-Index:

S-Index approved Material Footwear Apparel Accessories Packaging

Cotton and other Natural Materials

Organic Cotton x x x

Cotton made in Africa

x

Recycled Cotton (min 25% recycled content) x

Hemp x

Linen x

Jute

Tencel

Polyester and other Polymers

Recycled Polyester x x x

Recycled Polypropylene

x

Recycled Nylon

Recycled TPU x

36

Bluesign Certified Fabrics x x

Apinat Bio (100% biodegradable) x x x

Water Repellent Coatings non PFC based x

Water based Polyurethan x x

Biobased Polymers

Leather

Leather from Leather Working Group certified

Tanneries (minimum Bronze Level) x

x

Chrome-free Leather x

Recycled Leather

Rubber

Recycled Rubber x

FSC certified Rubber x

Latex/Natural Rubber x

Paper and Cardboard

Recycled Paper and Cardboard

x

FSC Certified Paper and Cardboard x

Fairtrade

Fairtrade certified Sportsballs

x

Fairtrade certified Cotton x

Cradle to Cradle

C2C certified products x x x

Figure 13: S-Index Approved Materials

37

Figure 14: The PUMA Eco-Table

38

5.1 Design for Recycling

Following PUMAs partnership with the Environmental Protection Encouragement Agency (EPEA) and Cradle to Cradle®

inventor Prof. Braungart, PUMA is actively working on Design for Recycling and closing the material loops.

In this context, PUMA has created an InCycle Collection which can be brought back to PUMA Stores where the products

are recollected by our global recollection partner I:CO. The collection thereby optimizes products for the technical or

natural cycle (see figure 14 below).

Figure 15: Biological and Technical Cycle of Puma

For more information on Cradle to Cradle® and Design for Recycling please visit the website of the Environmental

Protection Encouragement Agency: http://epea-hamburg.org

39

5.2 Accepted Certifications

In the context of PUMA S- Index approved materials, PUMA accepts the following product level certifications or

standards from suppliers:

• Global Organic Textile Standard GOTS (http://www.global-standard.org/)

• Organic Exchange (http://www.ecocert.com/en/organic-exchange-oe)

• Recycled Polyester certified by Global Recycle Standard GRS (http://textileexchange.org/content/global-recycle-

standard)

• Cotton made in Africa (http://www.cotton-made-in-africa.com/en/)

• Blue Sign certificated Fabrics (http://www.bluesign.com/index.php?id=home)

• Leather Working Group certified Leather (http://www.leatherworkinggroup.com/)

• FSC Certified Rubber, Paper and Cardboard

• All Cradle2Cradle certificated Materials (http://www.mbdc.com/detail.aspx?linkid=2&sublink=8)

• Fairtrade certified cotton or Sportballs (http://www.fairtrade.net/)

5.6 Product Level E P&L

Further to the corporate level E P&L as described in Chapter Three, PUMA has used the methodology developed for the

E P&L, as well as product lifecycle assessment tools, to also quantify the damage to nature on a product level. For this

study, 19 exemplary PUMA products were selected and the environmental cost for each product was calculated for the

same 5 impact categories Greenhouse Gases, Water, Waste, Air Emissions and Land Use Change.

The product level E P&L was further more used to compare and quantify the benefits of more sustainable PUMA

products against conventional PUMA products. Please find below the results from an exemplary comparison of two

lifestyle sneakers, the classic PUMA Suede with a leather upper as well as the PUMA InCycle Basket, which was

developed as PUMAs first fully biodegradable shoe.

As indicated in figure 16, the overall impact on the environment of the InCycle Basket compared to a traditional PUMA

Suede is approximately 30% lower for our more sustainable product. The comparison of a fully biodegradable T-Shirt

made from organic cotton to a conventional PUMA cotton T-Shirt, for example, also resulted in approximately 30%

lower cost for the InCycle cotton shirt.

Figure 16: Product Level EP&L exemplary results

SECTION SIX

6. Sustainability Apparel Collection (SAC)

6.1 Introduction to SAC

The Sustainable Apparel Coalition is an industry

suppliers, nonprofits, and NGOs working to reduce the environmental and social impacts of apparel and footwear

products around the world.

The Sustainable Apparel Coalition was founded by a gro

companies who recognize that addressing our industry’s current social and environmental challenges are both a

business imperative and an opportunity.

Through multi-stakeholder engagement, the Co

built upon a common approach for measuring and evaluating apparel and footwear product sustainability performance

that will spotlight priorities for action and opportunities for te

PUMA became an active member of the Sustainable

together to reduce the environmental and

Product Level EP&L exemplary results

6. Sustainability Apparel Collection (SAC)

The Sustainable Apparel Coalition is an industry-wide group of over 60 leading apparel and footwear brands, retailers,


The Sustainable Apparel Coalition was founded by a group of sustainability leaders from global apparel and footwear


business imperative and an opportunity.

stakeholder engagement, the Coalition seeks to lead the industry toward a shared vision of sustainability


that will spotlight priorities for action and opportunities for technological innovation

PUMA became an active member of the Sustainable Apparel Coalition SAC in 2011. The aim of the coalition is to

and social impacts of apparel and footwear products around the world. PUMA is

40

roup of over 60 leading apparel and footwear brands, retailers,


up of sustainability leaders from global apparel and footwear


alition seeks to lead the industry toward a shared vision of sustainability


in 2011. The aim of the coalition is to work

products around the world. PUMA is

41

actively engaged in several environmental and the social working group within the coalition. Active membership in the

SAC gives PUMA and the PUMA Suppliers the opportunity to work in collaboration with our industry peers on common

goals, whether these goals are related to environmentally friendly products and production processes or to improving

working standards within the supply chain.

In 2012 the Sustainable Apparel Coalition launched the Higg Index. This index measures the environmental impact for

Brands, Manufacturing Facilities as well as Products.

Comprising of three modules for Brands, Manufacturing Facilities and products, the Index can be downloaded for free

under:

http://www.apparelcoalition.org/

PUMA has tested the HIGG Index for selected apparel products and recommends all key apparel suppliers to

complete the Facilities module (Self-Assessment Questionnaire) as preparation for future PUMA product scoring as

well as valuable source of information on sustainability trends and best practices.

Footwear Index testing will start at the end of 2012. PUMA will inform its footwear supply chain of the further

proceedings.

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Useful Links

Puma Safe: http://safe.puma.com/us/en/?Supplier Reports

Global Reporting Initiative: https://www.globalreporting.org/Pages/default.aspx

BVT Guidance (German Environmental Agency): http://www.bvt.umweltbundesamt.de/

Greepeace Detox (ZDHC): http://www.greenpeace.org/international/en/campaigns/toxics/water/detox/

UN Global Compact: http://www.unglobalcompact.org/

UNEP Carbon Neutral Network: http://www.unep.org/

Sustainable Apparel Coalition: http://www.apparelcoalition.org/

Bluesign: http://www.bluesign.com/

Leather Working Group: http://www.leatherworkinggroup.com/

Textile Exchange: http://textileexchange.org/

Environmental Protection Encouragement Agency (Cradle to Cradle): http://epea-hamburg.org/index.php

43

APPENDIX

UN Global Compact Principles

The Ten Principles

The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:

• The Universal Declaration of Human Rights

• The International Labour Organization's Declaration on Fundamental Principles and Rights at Work

• The Rio Declaration on Environment and Development

• The United Nations Convention Against Corruption

The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;

and

• Principle 2: make sure that they are not complicit in human rights abuses.

Labour

• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to

collective bargaining;

• Principle 4: the elimination of all forms of forced and compulsory labour;

• Principle 5: the effective abolition of child labour; and

• Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

• Principle 7: Businesses should support a precautionary approach to environmental challenges;

• Principle 8: undertake initiatives to promote greater environmental responsibility; and

• Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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Sustainability Charters for Offices, Stores Warehouses

Sustainability Charter for PUMA Offices

In PUMA, we are committed to reducing our environmental impact and we have clear goals to achieve this. In this office we…

CO2

… Promote environmentally friendly means of

transportation for employees

… Switch to a more environmentally friendly car

fleet

… Promote local/organic food at the canteen

… Support the “Meat Free Monday” Campaign

… Promote conference calls or video

conferences instead of business trips where

feasible

Energy

… Monitor and analyze consumption quarterly

… Use efficient lighting in offices

… Install a main switch to turn off all electronic

devices

… Install motion sensors for lights

… Use cooling and heating wisely

… Promote use of renewable energies

… Install appliances with a good energy rating

… Undertake regular maintenance to ensure all

devices are working correctly and efficiently

… Activate energy-efficient mode in all

computers, printers and copiers

… Raise sustainability

awareness amongst staff

Water


… Install water saving devices on basin

faucets/taps

… Install water-efficient toilets

… Recover rainwater where feasible

… Use environmentally friendly cleaning products

… Water green areas wisely

Waste

… Recycle ink cartridges

… Sort and recycle waste wherever possible

… Reuse and recycle envelopes and packaging

… Safely dispose all fluorescent bulbs/batteries

… Remove disposable tableware from the canteen

Paper

… Promote a paperless office policy

… Use recycled paper or paper from certified

sources

Please contact [email protected] if you have any

ideas on how to make our offices more sustainable!

45

Sustainability Charter for PUMA Stores

In PUMA, we are committed to reducing our environmental impact and we have clear goals to achieve this. In this store we…

CO2




/truck fleet




feasible

Energy


… Use efficient lighting in stores


devices

… Install motion sensors for lights in staff room










Water



faucets/taps




Waste






Paper

… Promote a paperless store policy

… Use recycled paper/cardboard or

paper/cardboard from certified sources

… Re-use cardboard boxes

Customer and Products:

… Use environmentally friendly and re-usable

shopping bags

… Support Bring Me Back Program

… Highlight products with Eco-label


ideas on how to make our stores more sustainable!

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Sustainability Charter for PUMA Warehouse

In PUMA, we are committed to reducing our environmental impact and we have clear goals to achieve this. In this warehouse we…

CO2




/truck fleet

… Use more fuel/energy efficient forklifts

… Promote local/organic food at the canteen




feasible

Energy


… Use efficient lighting in warehouses


devices

… Install motion sensors for lights










Water



faucets/taps




… Water green areas wisely

Waste






Paper

… Promote a paperless warehouse policy

… Use sustainable or recycled paper/cardboard

… Re-usage of cardboard boxes


ideas on how to make our warehouses more sustainable!

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Sustainability Charter for Suppliers

Enablon Screenshots (Corporate and Supplier)

puma.safe environmental handbook volume...

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