During the United Nations Climate Change Conference in Paris in 2015, PUMA committed to setting a science-based CO2 emission target. This means that we have accepted our fair share in the enormous work that is required to hold the increase in the global average temperature to well below 2°C above pre-industrial levels. Since achieving such a science-based target is a long process, we have decided to set an interim reduction target of 3% (in line with the corresponding science-based target option) for direct CO2 emissions, indirect emissions from electricity and district heating as well as indirect emissions from manufacturing and transportation of goods for 2016. At the same time, we have worked on setting the science-based target and met with expert consultancies and civil society organisations to better understand which methodology to use. We plan to finalize our Science-based emissions target in 2017. During the target-setting process, we once more realised that the CO2 footprint of our own offices, stores and warehouses worldwide is only a small fraction of the emissions caused further down in the supply chain, be it through transportation of goods from Asia to our main markets in Europe and the USA, from the final manufacturing of goods mainly realised in large factories in Asia, or from the extraction and processing of the materials used in our products. Our 3% target was achieved in relative terms for direct emissions (Scope 1) due to a more efficient car fleet. Emissions from electricity and district heating (Scope 2) per turnover remained more or less stable, while emissions from transportation of our goods decreased. This decrease can be attributed to a lower emission factor for sea freight. Most of our shipments are carried out by our partner Maersk Line, who operates a fleet of ships with lower fuel consumption than the industry average.
Emissions from our Tier 1 manufacturers also decreased as a result of our SAVE capacity building project on resource efficiency as well as a general trend in the industry to realize energy savings. Therefore, we have continued to focus on our large-scale suppliers in Asia and support them in improving their energy efficiency, starting to move from fossil fuels to renewable energy. We have finished our large-scale resource efficiency programme SAVE (http://about.puma.com/en/sustainability/supply-chain/resource-efficiency) with encouraging results. According to the final project report, the SAVE project helped to decrease the CO2 emissions from the 35 participating suppliers in total by over 40.000 tons per year. This figure equals approximately the total annual CO2 emissions of all PUMA offices, stores and warehouses worldwide (Scope 1 and 2). In 2016, we set up our next big resource efficiency and renewable energy programme in Vietnam, partnering with the International Finance Corporation, IFC. The programme will focus on ten PUMA core suppliers with large energy consumption and CO2 footprint and contain detailed energy efficiency assessments as well as feasibility studies for implementing renewable energy at each supplier.
In addition to our work within the supply chain, we have stepped up our efforts for our own entities and moved 50 stores from conventional lighting to LED lighting. Through this, we are saving approximately 20% of those stores’ energy consumption. With the further roll-out of the new store concept, we expect to see those savings positively impacting our Scope 2 emissions. We have also planned to install state-of-the-art LED lighting concepts and thermal insulation into the newly extended Headquarter building in Herzogenaurach, Germany. Once completed, the building will provide several additional charging stations for electric cars, supporting our target of further reducing the average emissions from our PUMA car fleet by switching to electric or hybrid cars where economically reasonable.