Our environmental targets are broken down into efficiency targets for our own entities (offices, stores and warehouses) and targets for our key suppliers.
In line with our environmental policy, we regularly collect environmental key performance indicators such as CO2 emissions, energy, water, waste and paper. In doing so, we have not only created awareness of our resource consumption, but have also set ambitious targets to reduce our impact on the environment.
Energy Consumption and CO2 Emissions:
Energy consumption and CO2 emissions for our own entities are mainlycomprised of
– Electricity consumption within our buildings
– Consumption of natural gas or district heat for heating our buildings
– Consumption of fuel for our company cars
This composition gives us the opportunity to create win-win situations by both improving our environmental performance and saving money through more energy efficient buildings, heating systems and company cars.
The average emission factor of our PUMA car fleet at the headquarters in Germany, for example, has decreased in 2015 from 132 gr CO2/km to 122 gr CO2/km, resulting in financial savings of approximately € 30,000 per year for the 227 company cars in Germany alone.
Related to electricity consumption, we saw the first opening of a PUMA store in 2015 under our new “Forever Faster” store concept, which exclusively uses highly energy efficient LED lights. By year-end 2015, 20 PUMA stores globally had executed the new concept and thus fully converted to energy efficient lighting. The introduction of the first LEDs in our stores was accompanied by professional energy efficiency audits in PUMA stores in France, Germany and the UK.
Looking at the overall energy figures, we can see that we could achieve a relative reduction of 6% energy consumption per employee from 2010 to 2015. In absolute terms, the energy consumption increased by 8%.
This translates into a relative CO2 emission reduction of 20% for Scope 1 (direct emissions) and 13% for Scope 2 (indirect emissions). This was also supported by a significant increase in the purchase of renewable electricity from 10% in 2011 to 14% in 2015 as well as the energy creation from several photovoltaic power plants at headquarters and stores in Herzogenaurach, Germany, and at the head office in the USA.
CO2 Emissions from Transportation of Goods:
Most of PUMA’s transportation activities originate from the main manufacturing markets in Asia, which serve all other markets globally, and this is why transportation is a key contributor to the CO2 emissions.
The rise in tons emitted from 51,784 t to 57,828 t by 11.7% is fully in line with the rise in tonnage transported due to more goods sold due to PUMA’s new strategic setup.
Emissions per ton transported have remained stable throughout the previous years, which is due to diligent planning and implementation of guidelines and programs to save space and use best available means of transportation focused on the needs of the business.
Courier services are reported separately by PUMA’s main stakeholder Kering, located in Paris, France. The current indication is that courier service B2B emissions account for less than 3% of our overall B2B emissions globally.
While we clearly missed our 25% reduction target set from 2010 to 2015, our declared goal remains to continuously drive our partners and service providers to improve efficiency of transport vehicles and services. This goes hand in hand with improvements made to the supply chain.
We are fully aware that to effectively limit global climate change to two degrees or less, much more ambitious targets are required going forward. Even though PUMA is only one of many players in the global climate debate, we stand ready to contribute our fair share. Therefore, we have committed to calculating a science-based target for PUMA together with climate experts from WWF, the Carbon Disclosure Project and Stiftung 2° and plan to implement this target within the next two years.
Water consumption from our own entities is mainly for sanitary and kitchen usage. Therefore, the saving opportunities lie within water-efficient toilets, faucets, dishwashers, etc. The capturing and usage of rain water, as is done in our German headquarters, is another way to save grid water consumption, since drinking water quality is not always needed for all purposes.
Looking at table T.2, we have achieved relative and absolute savings of 22% and 11%, and therefore fell short of our 2015 target by only 3%. At an average cost of € 2 per m3, the saving of 12,000 m3 grid water per year also helped us to realize a financial saving of approximately € 25,000 per year.
For the next target period, we will no longer focus on water consumption in our own entities, but rather on water consumption and treatment in our supply chain, which has by far more relevance in terms of environmental impact.
Through the usage of office paper, packaging materials in our warehouses and packaging of the goods sold in our stores, we are creating significant volumes of waste.
Fortunately, most of this waste is recyclable. Particularly through the segregation and recycling of cardboard and paper as secondary raw material, we can even generate some revenue from our waste and thus help to reduce the disposal cost for waste overall.
Between 2010 and 2015, the percentage of waste going into recycling increased and now stands at 59% of all waste being recycled, while the overall amount of waste per full-time employee has decreased significantly by 32%.
We have therefore achieved our target of 25% reduction for 2015. Going forward, we will continue to measure the creation and recycling of our waste on a global level. For the future targets up to 2020, we will focus – similar to the water consumption – on our manufacturing partners rather than our own entities, because waste production in the supply chain is significantly higher than at PUMA’s own locations.
Paper consumption from our own entities (excluding product packaging) could be reduced significantly over the last five years. For both the average consumption per full time employee (-44%) and the total overall consumption (-36%), we achieved our 25% reduction target.
This in turn helps to save on the cost of paper and also adds significantly to the waste reduction, since paper and cardboard is our largest waste fraction.
Extrapolating on the paper savings with the cost of office paper at € 1 per kg, we estimate the total savings made at over € 100,000 per year.
Besides reducing unnecessary consumption, we have constantly been increasing the percentage of recycled and/or certified paper within our own entities. Starting from 47% in 2010, we now stand at 56% of certified and/or recycled paper consumption and will continue to push increasing this figure further.
Nevertheless, also in the field of paper and cardboard consumption we will shift our focus and target from the corporate level more towards the production level going forward. As a first and important step, we already implemented an FSC®-certified new standard shoe box with a recycled paper content of over 90% for our footwear products. To put this into perspective, we are using approximately 50 times more recycled and certified paper through the new box than in all of our offices, stores and warehouses worldwide.