Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Accountability
• Fundamental Environmental Standards
• Human Rights
• Product Safety
• Ecological Concerns

Environmental Achievements

• Eliminated all PVC from products
• Reduced VOC level in footwear from 72 grams/pair to 48 grams/pair
• 73% of suppliers segregate waste for recycling
• One apparel factory achieved 100% recycling of wastewater (390,360 m3/year) and solid waste

Social Achievements

• Joined the Fair Labor Association (FLA)
• Implemented a company-wide Code of Ethics
• Conducted 337 audits of suppliers (171 re-audits)
• Employee turnover at head office was 5.3%
• Female:male ratio at head office was 52.5% to 47.5%
• 14% of management team were women
• Average training expenditure per employee was €400 per year

Governance Achievements

• Followed the German Corporate Governance Code (with two deviations)
• Supervisory board composed of six non-executive members, two of whom were employee representatives

Climate Goals & Targets

Environmental Challenges

• Not all social and environmental issues were solved as they should have been
• Supply chain disruptions due to rapid growth and expansion of supplier base
• Excessive overtime in some factories
• Allegations of non-compliance in some factories regarding minimum wage, overtime, chemicals, food, and freedom of association
• Difficulties in monitoring energy use and greenhouse gas emissions from outsourced production
• Need to improve worker-management dialogue and capacity building

Mitigation Strategies

• Reworked audit methodology and internal rating system
• Expanded S.A.F.E. team in the Far East
• Increased internal transparency through S.A.F.E. News
• Investigated and addressed all allegations of non-compliance
• Worked with factories through focused remediation
• Engaged with external auditors (FLA and others)
• Participated in industry-level projects to address soft concerns
• Planned comprehensive training program for 2005

Supply Chain Management

Supplier Audits: 337 audits in 2004 (171 re-audits)

Responsible Procurement

• Code of Conduct
• S.A.F.E. concept
• FLA standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) guidelines (2002)

Third-party Assurance: IMUG (Institut für Markt, Umwelt und Gesellschaft)

Sustainable Products & Innovation

• Mahanuala product line using organic cotton

Awards & Recognition

• Prize for business ethics from the German Network of Business Ethics (DNWE)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Established the first-ever Environmental Profit and Loss Account
• Launched the Clever Little Bag, reducing paper and water usage by over 60%
• Committed to zero discharge of hazardous chemicals by 2020 (Greenpeace Detox agreement)

Social Achievements

• Improved employee satisfaction scores across all 13 measured categories compared to 2009
• Implemented improvement plan at Huey Chuen factory in Cambodia following mass fainting incidents
• Expanded collaboration with educational institutions to recruit entry-level talents

Governance Achievements

• Converted from a German stock corporation to a European company (PUMA SE)
• Established an SE works council representing employees in 26 countries
• Implemented a whistleblower scheme with a global toll-free hotline

Climate Goals & Targets

Environmental Challenges

• Mass fainting incidents at a Cambodian supplier factory
• Ensuring supplier compliance with PUMA's Code of Conduct
• Data collection challenges for environmental KPIs from stores worldwide

Mitigation Strategies

• Launched intensive investigation through FLA into the causes of mass fainting
• Implemented improvement plan at Huey Chuen factory (Cambodia)
• Restructured PUMA.Safe into Humanity and Ecology divisions
• Developed a new environmental data collection system (Enablon)
• Introduced a new process to collect store-level data for water, waste, and paper KPIs

Supply Chain Management

Supplier Audits: 85 audits in 2011 (approx. 77% of active supply base)

Responsible Procurement

• PUMA Code of Conduct
• Sustainability Scorecard
• Strategic Supplier Concept
• Capacity building projects

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• PUMA Re-Suede
• Products made with organic cotton, recycled polyester

Awards & Recognition

• Yellow Pencil Winner (Clever Little Bag)
• Black Pencil Winner (PUMA Phone Packaging)
• Best Green International Business Award
• Best Green New Product Innovation
• PPR Innovation and Sustainable Development Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Health & Safety
• Anti-Corruption
• Social Compliance
• Chemicals
• Water & Air
• Materials
• EP&L Impact
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 38% compared to 2018 (Scope 1 & 2).
• Achieved 75% renewable energy coverage for electricity used.
• Increased usage of Better Cotton Initiative (BCI) cotton to over 80%.
• Increased usage of certified polyester (bluesign & OEKO-TEX) to over 90%.

Social Achievements

• Eliminated recruitment fees for migrant workers within Tier 1 supplier base.
• Achieved zero fatal accidents at PUMA and its finished goods suppliers for the second year in a row.
• Surveyed more than 20,000 workers at suppliers for working conditions via a mobile app.
• Increased community hours donated by PUMA staff globally.
• Improved employee engagement score to 91%.

Governance Achievements

• Established a Responsible Purchasing Policy and training program.
• 99% of PUMA employees with email accounts completed Code of Ethics training.
• 99% of core suppliers trained in anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Water & Air target remained below expectations due to industry's slow development of air emission standards and challenges in achieving ZDHC Wastewater Quality Guideline standards.
• Scope 3 emissions (supply chain) remained a challenge.

Mitigation Strategies

• Continued work with industry peers and suppliers to develop industry standards for air emissions and wastewater quality.
• Expanded energy efficiency programs to China and Taiwan by joining the Clean by Design Program.
• Joined WWF’s Low Carbon Manufacturing Program.
• Increased use of sustainable raw materials (e.g., bluesign certified polyester).

Supply Chain Management

Supplier Audits: 475 audits in 418 factories

Responsible Procurement

• Responsible Purchasing Policy
• PUMA Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Fair Labor Association

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Not disclosed

Sustainable Products & Innovation

• First Mile Collection (recycled plastic)
• Day Zero Collection (water saving technologies)

Awards & Recognition

• Financial Times “Leader in Diversity” award for Europe
• European Top Employer award

Environmental Metrics

ESG Focus Areas

• Human Rights
• Climate Action
• Circularity
• Products
• Water and Air
• Biodiversity
• Plastic and the Oceans
• Chemicals
• Health & Safety
• Fair Wages

Environmental Achievements

• Reduced combined Scope 1 and 2 emissions by 88% (market-based) compared to the 2017 baseline.
• Achieved 100% renewable electricity for PUMA entities (including RECs).
• Increased recycled polyester use to 43% in apparel and accessories.
• Reduced water consumption per pair or piece based on 2020 baseline (Textile: -4%, Leather: -11%, Apparel: -8%, Footwear: -21%).
• Reduced VOCs in footwear production to 13.6 grams/pair.
• Over 93% compliance with ZDHC Wastewater Guidelines.
• Eliminated 50% of plastic bags from PUMA stores compared to 2020.

Social Achievements

• Zero fatal accidents at PUMA and its direct suppliers for the fourth consecutive year.
• Increased worker satisfaction by 6% compared to 2020.
• Improved percentage of converted external compliance reports from 54% to 59%.
• Collected 508 audit reports from 477 factories despite travel restrictions.
• 39,000 hours of global community engagement.

Governance Achievements

• Established a Supervisory Board Sustainability Committee.
• Integrated sustainability targets into bonus arrangements for global leadership team (5% of overall bonus).
• Conducted the first ever virtual stakeholder dialog meeting on Circularity and Climate Action.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Biodiversity loss and climate change.
• Systemic overtime in some factories.
• Wage gaps in some sourcing countries.
• Microfiber release from synthetic fabrics.
• Water risks in some key sourcing countries (flooding, poor water quality, water depletion).

Mitigation Strategies

• Partnered with suppliers and customers, shifting orders while avoiding cancellations.
• Supported suppliers by increasing the reach of PUMA’s Forever Better Financing program.
• Prioritized safety of all staff by following strict hygiene standards.
• Introduced a biodiversity and forest protection policy and partnered with Canopy.
• Expanded the use of recycled polyester.
• Implemented responsible purchasing practices.
• Conducted fair wage assessments and remediation efforts.
• Joined TMC to address microfiber concerns.
• Developed a water roadmap and risk assessment.

Supply Chain Management

Supplier Audits: 508 audits in 2021

Responsible Procurement

• Manufacturing Agreement with all suppliers.
• On-time and full payments to suppliers.
• Price paid for product to include reasonable labor costs.
• Open Production Capacity declaration by suppliers.
• Seasonal production plans allocated considering negotiated capacity.
• Sufficient production lead time provided.
• No subcontracting without authorization.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Unfavorable policies for renewables in some countries.
• Unstable business in the industry.

Opportunities

• Development of energy-efficient products.
• Expansion of renewable energy use in the supply chain.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft (Limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

PUMA's 10FOR25 targets are linked to the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Re:Gen collection.
• Exhale collection.
• RE:SUEDE experiment.
• First Mile collection.
• Better Foam.

Awards & Recognition

• FTSE4Good Sustainability Index (sector lead).
• Triple A rating from MSCI ESG ratings.
• ESG Prime rating from ISS.
• Climate Leader status from the Financial Times.
• Climate Leader status from CDP (A- and A for Supplier Engagement).
• Inclusion in the Global Top 100 most sustainable company index by Corporate Knights.
• Industry Mover Status from S&P on sustainability.
• Material Change Index Leader Status from Textile Exchange.

Environmental Metrics

ESG Focus Areas

• Human Rights
• Climate Action
• Circularity
• Products
• Water and Air
• Biodiversity
• Plastics and the Oceans
• Chemicals
• Health & Safety
• Fair Income

Environmental Achievements

• Reduced own carbon emissions by 86% compared to 2017 baseline.
• Sourced 100% renewable electricity for PUMA’s own offices, stores and warehouses.
• 7 out of 10 PUMA products globally are made with more sustainable materials.
• Increased circularity efforts with RE:SUEDE and RE:JERSEY projects.
• Core suppliers increased their share of renewable energy to 11%.

Social Achievements

• 160,000 factory workers trained on sexual harassment at work (target hit three years ahead of schedule).
• PUMA employees contributed 43,000 hours of community engagement work.
• Average payment is 13.4% above minimum wages for core supplier Tier 1 factories.
• Increased percentage of women on management board to 50%.

Governance Achievements

• Successfully completed the generation change on the Management Board with the appointment of Arne Freundt as CEO.
• Appointed Maria Valdes as Chief Product Officer.
• Sustainability targets are part of the bonus arrangements of every member of our global leadership team.

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions in Europe and the far-reaching social and economic consequences.
• Increased global staff turnover.
• War in Ukraine.
• COVID-19 pandemic, particularly affecting operations in China.
• Wages paid in many sourcing countries still need to be increased.
• Goods are still transported using fossil fuels.
• Product-to-product recycling only exists at pilot scale.

Mitigation Strategies

• Focus on talent acquisition, development and retention.
• Increased global employer attractiveness.
• Supported Ukrainian employees, athletes, and partners.
• Secured full pay for employees in Russia after business suspension.
• Continued to work closely with athletes, retailers, and suppliers to maintain supply chain stability.
• Implemented strict hygiene and safety policies.
• Invested over €1.5 million to electrify PUMA car fleet and introduced electric truck in the USA.
• Several factories started producing own renewable energy.
• Partnered with Maersk to use biofuels for shipping.
• Expanded due diligence efforts deeper into the supply chain.

Supply Chain Management

Supplier Audits: 536 audit reports from 510 factories (392 Tier 1, 112 core Tier 2, 6 warehouses) in 2022.

Responsible Procurement

• Code of Conduct, Responsible Purchasing Practice Policy, Forever Better Vendor Financing Program.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water scarcity

Transition Risks

• Changing consumer preferences, policies and regulations, rising energy prices

Opportunities

• Development of energy-efficient products, more sustainable materials.

Reporting Standards

Frameworks Used: GRI Standards GRI 1: Foundation 2021, EU Taxonomy Regulation, TCFD

Certifications: ISO 14001 (headquarters), ISO 45001 (planned)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

PUMA's initiatives contribute to these goals through various programs and targets related to human rights, climate action, circularity, water and air, biodiversity, chemicals, health and safety, and fair income.

Sustainable Products & Innovation

• RE:SUEDE, RE:JERSEY

Awards & Recognition

• Business of Fashion Sustainability Ranking (highest score)
• Footwear News Sustainability Leadership Award
• CDP A List for Climate Leaders
• FTSE4Good sector ranking (top)
• MSCI AAA rating
• ISS prime rating
• Corporate Knights Global 100 Most Sustainable Companies list
• S&P Corporate Sustainability Assessment (highest among sports brands)
• Top Employer in 22 countries

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Rights
• Diversity & Inclusion

Environmental Achievements

• Launched RE:SUEDE project, successfully composting an experimental version of the Suede sneaker under specific industrial conditions.
• Achieved 7 out of 10 products made with better materials such as recycled polyester by 2023.

Social Achievements

• Named a global Top Employer in 2023.
• Closed the adjusted pay gap between women and men among employees in Germany.
• 24 PUMA subsidiaries won Top Employer awards.
• Named one of the “World’s Best Employers” by Forbes and a “Leader in Diversity” by the Financial Times.

Governance Achievements

• Implemented a functioning compliance management system, including a whistleblowing system.
• Established a solid tax governance framework with internal and external tax experts.

Climate Goals & Targets

Environmental Challenges

• Difficult geopolitical and macroeconomic environment (conflict in the Middle East, war in Ukraine, inflation, recession risks).
• Significant devaluation of the Argentine peso.
• High inflation, fluctuating raw material costs, and freight costs.
• Intense competition in the sports and lifestyle markets.
• Changing consumer preferences.
• Supply chain disruptions and sourcing challenges (rising costs, potential recession).
• Currency risks due to international operations.
• Risks related to sustainability (resource crises, customer requirements).

Mitigation Strategies

• Focus on operational flexibility, inventory normalization, and cost discipline.
• Price adjustments and favorable regional and distribution channel mix.
• Currency hedging (up to 95% of estimated foreign currency risks).
• Regular review and adjustment of sourcing portfolio.
• Long-term master framework agreements with suppliers.
• Close communication with regions and key markets.
• Contingency strategies for pandemic-related risks.
• Market research and monitoring of consumer trends.
• Investments in product design and development.
• Careful press, social media, and public relations work.
• Group and regional project teams and policies for managing projects.
• Technical and organizational measures for information technology security.
• Strong collaborations with retail partners.
• Investments in IT systems and e-commerce channels.
• Comprehensive “Forever Better” sustainability strategy with measurable targets and KPIs.
• Stakeholder dialogue and partnerships with organizations.
• Regular audits and human rights/environmental risk assessments.
• Credit insurance to limit default risk on trade receivables.

Supply Chain Management

Responsible Procurement

• PUMA Forever Better Vendor Financing Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• RE:SUEDE

Awards & Recognition

• Top Employer Award (24 subsidiaries)
• World’s Best Employers (Forbes)
• Leader in Diversity (Financial Times)
• Great Place to Work