“We at PUMA have already done a lot to mitigate PUMA’s negative impact on our planet,” said Jochen Zeitz, Chairman and CEO of PUMA. “Through our PUMAVision category puma.safe, we started to more accurately measure the carbon footprint of our offices worldwide, which will help us to identify areas where we can further reduce our carbon footprint. As Methane released by cows is responsible for 18% of gas emissions, PUMA is supporting the “Meat Free Monday” campaign and encourages its employees to do the same by avoiding meat consumption at least once a week on Mondays.”

Sir Paul McCartney said: “I think many of us feel helpless in the face of environmental challenges, and it can be hard to know how to sort through the advice about what we can do to make a meaningful contribution to a cleaner, more sustainable, healthier world. Having one designated meat free day a week is actually a meaningful change that everyone can make, that goes to the heart of several important political, environmental and ethical issues all at once. For instance it not only addresses pollution, but better health, the ethical treatment of animals, global hunger and community and political activism.”

“Meat Free Monday” is an initiative by Sir Paul McCartney and his daughters Stella and Mary to encourage meat-eaters to forgo carnivorous meals for one day each week. The campaign website www.supportMFM.org provides additional information on tasty and healthy alternatives, while the website www.carbonneutralbeef.com can provide additional information on what the meat industry has been doing to reduce its impact.

Under puma.safe, PUMA is bringing together all of it’s longstanding work on environmental issues and decent work in decent workplaces, and combining it with new initiatives that will drive us to cleaner, greener, safer and more sustainable systems and practices. Earlier this year PUMA supported the environmental movie “HOME” by bringing this powerful commentary on the major environmental and social issues challenging our world to as many viewers as possible. At PUMA we know that creating awareness of our environment’s emergency state is crucial and acting on that awareness through positive action is our contribution to a more responsible corporate ethic.

PUMAVision unites all PUMA initiatives that come under the heading ‘Corporate Social Responsibility’, giving them a coherent direction and framework. It comes from a vision of a world that is better than the one we know now—a world that is safer, more peaceful and more creative. The PUMAVision programs puma.safe (focusing on environmental and social issues), puma.peace (supporting global peace), and puma.creative (supporting artists and creative organizations), reflect PUMA’s commitment to social and environmental responsibility and define the partnerships and initiatives PUMA will support and pursue.

The 121-page document covers the reporting period 2007/2008 and has exclusively been published online for environmental reasons. It details PUMA’s progress to enhance working and social standards in its supply chain, build capacity at its suppliers’ factories, broaden its range of sustainable products and reduce the company’s environmental footprint through the PUMAVision category puma.safe. It furthermore outlines PUMA’s activities in supporting artists and creative organizations through the category puma.creative and its initiatives to support global peace through puma.peace.

Download the full report here.

“Our 2007/2008 PUMAVision Sustainability Report is a testament to the fact that we at PUMA do not simply talk about sustainable development, we take action,” said Jochen Zeitz, Chairman and CEO of PUMA. “We are proud of our successes over the years and of our commitment to sustainability and the highest ethical standards, but realize that when it comes to corporate responsibility, there is and will always be room for improvement. Now, more than ever, we are deepening our commitments and dedicating ourselves to a strategy that sees the ‘whole’ as a sum of its parts—our PUMAVision. As we work towards a safer, more peaceful, and more creative world, we will continue to expand our outreach as corporate global citizens beyond the boundaries of business, not only for the benefit of our stakeholders, but for all.”

Highlights of the visually appealing document include:

• A portrait of the concept PUMAVision
• A transparent description of PUMA’s response to the challenges it faces in its supply chain operations, capacity building projects and brand collaboration initiatives
• The expansion of PUMA’s range of sustainable products through Fair Trade footballs and apparel from “Cotton Made in Africa”
• A detailed account of PUMA’s numerous initiatives to protect the environment, including the progress on reaching targets of a 25% reduction of energy and water consumption as well as waste creation for offices by 2010 and decreasing its carbon footprint
• An outline of PUMA’s worldwide activities in cooperation with the charity organization “Peace One Day” to raise awareness for global peace
• An account of its sponsorship of the art exhibition 30 Americans to support the work of 31 African-American artists
• A recap of PUMA’ numerous projects on the African continent

The report has been certified by TÜV Rheinland, which “is confident that PUMA AG operates a meaningful and adequate system to collect, measure, control and steer their sustainability activities and that the PUMA 2007/2008 Sustainability Report presents information and facts that give a realistic impression on the sustainability performance of the company.”

The Global Reporting Initiative has reconfirmed an A+ rating for the document.

PUMA’s endeavours to enhance its social and environmental standards are ongoing. The Sportlifestyle company endorses the campaign “Seal the Deal!” led by the United Nations. This campaign aims at strengthening political will and public support for reaching a comprehensive global climate agreement at the Climate Change Conference in Copenhagen, Denmark, in December 2009 to help prevent global warming and further climate change. As a participant in the Carbon Disclosure Project, PUMA is actively working on reducing its direct and indirect climate gas emissions.

PUMA is committed to working in ways that contribute to the world by supporting creativity, sustainability and peace, and by staying true to the values of being Fair, Honest, Positive and Creative in decisions made and actions taken. The foundation for our activities is PUMAVision—a concept that guides our work with its three core programs, puma.creative, puma.safe and puma.peace.

“PUMA’s new development center PUMA Village sets unprecedented standards in our industry,” said Jochen Zeitz, Chairman and CEO of PUMA. “This trend-setting concept of a product development center with over 40 PUMA suppliers under one roof, working tightly together, will increase PUMA’s speed to market, reduces our cost base and makes sure that our products are of excellent quality. It underpins PUMA’s current restructuring efforts to streamline our business operations throughout all steps of the value chain.”

“After three years of planning und building we have created a unique place for all our creative people to work directly with the prototype factories in a fast and professional way. Nearly all of our product categories as well as technologies will be developed at the PUMA Village in order to ensure that our entire product service and product quality goals are achieved”, said Reiner Seiz, Chief Supply Chain Officer of PUMA.

In line with PUMA’s sustainability concept PUMAVision, PUMA Village features a number of environmentally friendly assets. On top of the building, a water reservoir was installed for collecting rain water during all seasons of the year and especially during the rainy season from May to November. This water will be used to complement the water supply, for cooling purposes in the hot season as well as for gardening. In terms of energy saving a louver was installed to protect the office and factory building from direct sunlight which reduces the heating up of the building. Solar panels provide energy for warm water consumption and air-conditioning.

puma.safe, the department of Social and Environmental Affairs, is based in PUMA Village as well. puma.safe works towards raising work and production standards worldwide, developing new sustainable products and reducing our carbon footprint. As all of PUMA’s manufacturers have to adhere to PUMA’s environmental and safety standards, all manufacturing units and their workers based in PUMA Village have to comply with PUMA’s standards as well. A special on Health & Safety educated officer will permanently monitor the General Constructor’s working team, making sure that all standards are being adhered to during the production processes.

PUMA will reduce its carbon footprint by converting to green energy such as solar power and other renewable sources, optimizing travel and logistics to reduce transport-related emissions and leasing more fuel-efficient cars for its company fleet, among other measures. The plan covers the breadth of PUMA’s worldwide operations, from direct emissions from PUMA’s offices, stores and warehouses to staff business travel and the shipping of goods.

Achim Steiner, UN Under-Secretary-General and UNEP Executive Director, said: “By becoming the first global sport brand to join the Climate Neutral Network, PUMA is showing how sport can play a powerful green role in a low-carbon world. Sport has the unique ability to catalyze action among millions of people around the world – we look forward to working with PUMA to green mass sporting events and to engage sports men and women and fans around the world on the environmental challenges facing this generation.”

Jochen Zeitz, CEO of PUMA, said: “We at PUMA constantly strive to make our contribution to environmental protection and mitigate PUMA’s negative impact on our planet. Most scientists agree that the continued unlimited emission of greenhouse gases will lead to irreversible damages to our climate and ecosystem. PUMA’s strategy to reduce its carbon footprint is a significant milestone within our sustainability concept PUMAVision that looks ahead to a world that is safer, more peaceful and more creative for the generations to come.”

The company’s Head Office in Germany already uses renewable energy including concrete core temperature control and solar power for electricity and water heating. Similarly, its Boston office has a large-scale solar power station.

PUMA also helps its suppliers to work actively to reduce their own emissions – its South African supplier, Impahla Clothing, became the first Carbon Neutral apparel supplier on the African continent. In addition, the company says it will work with industry peers to develop a common industry framework and share best practice.

“As a supporter of the UN Global Compact, PUMA endorses the Seal the Deal! Campaign supporting the signing of a binding international agreement on Climate Change following the Kyoto Protocol,” the company says in its carbon neutral strategy.

PUMA has been collecting E-KPIs (Environmental Key Performance Indicators) from all its offices and stores worldwide for the last five years and identified several key areas that need to be dealt with in order to further reduce PUMA’s “paw print”. To address these issues, PUMA is launching its next phase of puma.safe initiatives in the company’s long-term sustainability program laying out ambitious targets to be achieved by 2015. The major objectives PUMA has set out to achieve in this period include:

• 25% reduction of CO2, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories.
• Paperless office policy through a 75% reduction and offsetting initiatives for the remaining paper usage such as tree planting initiatives.
• 25% CO2 reduction through more efficient product transport solutions by our logistic partners.
• Begin collaborating with our strategic suppliers and logistic service providers to offset their own footprints in the long-term.
• Introduction of the PUMA Sustainability-Index (S-Index) standard that serves as a benchmark for sustainable products and communicates the products’ sustainable features to consumers.
• 50% of PUMA’s international collections will be manufactured according to the PUMA S-Index standard by 2015, using sustainable materials such as organic cotton, Cotton Made in Africa or recycled polyester as well as applying best practice production processes.
  
  

To monitor these objectives PUMA is also establishing an external Advisory Board of experts in sustainability to consult on PUMA’s mission and audit PUMA’s sustainability program.

“For a long time our mission has been to become the most desirable Sportlifestyle company. With this next phase of our sustainability program we have evolved our mission to be the most desirable and sustainable Sportlifestyle company in the world,” said Jochen Zeitz, Chairman and CEO of PUMA. “Through PUMAVision and our puma.safe program we have already started to reduce our carbon emissions, curtail wasteful transportation, recycle and reuse available materials, use water sparingly and become paperless.”

Through PUMAVision, our vision of a better world, initiatives fall under the three pillars of puma.safe, puma.peace, and puma.creative to drive the company to cleaner, greener, safer and more sustainable systems and practices contributing to peace as well as promoting creativity and the arts. Under the puma.safe program, PUMA’s ultimate objective is to give back to the environment what it has taken. PUMA’s longstanding work and efforts to improve social, labour and environmental standards throughout its operations date back to 1999. From that time, the company has continuously incorporated environmentally-friendly practices to reduce its impact on the planet and realized several successful large-scale initiatives such as sourcing of raw materials through the Cotton made in Africa campaign to building the capacity of its suppliers as well as the opening of the industry’s first carbon neutral head office — the PUMAVision Headquarters in Herzogenaurach, Germany — last year after joining the UN Climate Neutral Network

The next milestone in PUMA’s mission to be the most desirable and sustainable Sportlifestyle company in the world is the introduction of an innovative packaging and distribution system for PUMA products that will reduce the paper used for shoeboxes by 65% and carbon emissions by 10k tons per year — the remaining packaging materials used will be fully sustainable by 2015. PUMA partnered with designer Yves Béhar, of San Francisco based fuseproject, to rethink the way the millions of pairs of shoes that it sells each year are packaged — less packaging means fewer raw materials, less use of water and energy to produce, and less weight to ship and to be disposed of. Béhar designed a “Clever Little Bag” to replace the cardboard shoebox with a re-usable shoe bag, that protects each pair of shoes from damage from the point it leaves the factory until the consumer takes it home — thus generating savings on the production side due to less material used, reducing weight during transport and eliminating the need for extra plastic carrier bags. As a result of the 65% paper reduction through the “Clever Little Bag” concept PUMA will reduce water, energy and diesel consumption on the manufacturing level by more than 60% per year. In other words: approximately 8,500 tons less paper will be consumed, 20 million Megajoules of electricity saved, 1 million litres less of fuel oil used and 1 million litres of water saved. During transport 500,000 litres of diesel is saved and lastly, due to the replacement of traditional shopping bags with the lighter built-in bag the difference in weight can save up to 275 tons of plastic.

“I was excited to partner with PUMA and contribute to such a game changing project,” said Yves Béhar. “PUMA’s initiative to look closely at one of the most challenging issues facing the retail industry in regards to sustainability and environmental harm was inspirational. In changing the packaging and distribution life cycle from the ground up, we hope our new design and comprehensive solution encourages other retail companies to follow suit.”

PUMA’s apparel collections will be bagged using sustainable material, replacing traditional polyethylene bags. This means that 720 tons of polyethylene bags can be avoided per year, which equals a saving of 29 million plastic bags — enough to cover an area the size of 1000 football pitches. Furthermore, PUMA T-shirts will be folded one more time to reduce the packaging size and thus saving CO2 emissions and costs during transport.

By switching out current plastic and paper shopping bags in PUMA stores and replacing them with sustainable biodegradable bags the sportlifestyle company is looking to save another 192 tons of plastic and 293 tons of paper annually.

The roll out of the new packaging and distribution system is planned as of the second half of 2011.

PUMA’s long-term sustainability program, however, will not stop with the accomplishment of the ambitions outlined above. The company takes responsibility to further reduce harm, working towards closed-loop systems and recycling programs. PUMA will continue to find innovative solutions that no longer deplete resources and will offset its “paw print” where further mitigation is not possible.

PUMA will make its next significant announcement on sustainability in the framework of the United Nations conference “The Business for the Environment Summit (B4E) in Seoul on 22 – 23 April, 2010.

“To be the first carbon neutral Sportlifestyle company is the next logical step in our mission to become the most desirable and sustainable Sportlifestyle company in the world,” said Jochen Zeitz, Chairman and CEO of PUMA. “We also took UNEP’s challenge to offset our football teams’ international travels to South Africa very seriously. Our commitment to the environment partnered with our long-standing collaboration with African football made it a foregone conclusion to support their initiative, and we hope in doing so that we inspire other stakeholders in the FIFA World Cup 2010 to follow suit.“

PUMA will compensate the company’s direct and indirect CO2 emissions through offsetting projects in Africa that also take the needs of local communities and the conservation of biodiversity and CSR programs into account. The portfolio of offsetting projects in Africa is being verified by an internationally recognized auditing company according to internationally accepted standards such as the Clean Development Mechanism (CDM), the Gold Standard and Voluntary Emission Reduction standards. PUMA’s total carbon footprint is externally verified utilizing similar methodology applied to the company’s carbon neutral headquarters.

Due to PUMA’s target of its long-term sustainability program to reduce its energy and water consumption, waste and CO2 emissions by 25% by 2015; the amount of CO2 emissions to be offset will decline on an annual basis. However, more than only saving energy, PUMA will require its local offices, stores and warehouses to switch to electricity from renewable sources wherever feasible – in line with its PUMAVision Headquarters in Germany. Thus significantly reducing the building’s carbon footprint. To offset the headquarter’s remaining CO2 emissions, PUMA actively supports a wind farm in Turkey as an offsetting project. Through this, PUMAVision Headquarters became the first carbon neutral company head office in the sportlifestyle and sporting goods industry.

PUMA has started to deeply embed its long-term sustainability program into the company’s operations and product cycle, making it an integral part of PUMA’s DNA. With football being a core business of the sportlifestyle company, it is only natural that PUMA responded to the United Nations Environment Programme’s (UNEP) petition that all Football Federations participating in the FIFA World Cup 2010 in South Africa offset their teams’ international travels. Therefore, PUMA will offset the carbon footprint of its football teams – a total of 336 players and officials. The PUMA teams that qualified for the World Cup include: Algeria, Cameroon, Ivory Coast, Ghana, Italy, Switzerland, and Uruguay. To further illustrate the importance of UNEP’s ‘call to action’, PUMA has decided to go one step beyond and offset all local travel and accommodation as well.

PUMA has been collecting E-KPIs (Environmental Key Performance Indicators) from all its offices, warehouses and stores worldwide for the last five years to determine the company’s total carbon footprint on an annual basis. PUMA’s global emissions are classified in accordance to the Greenhouse Gas Protocol including direct emissions generated through gas, fuel and car fleets as well as indirect emissions generated through electricity and steam from offices, shops and warehouses and further indirect emissions deriving from business travels. PUMA’s carbon offsetting does not include CO2 emissions through transportation of PUMA products. However, PUMA requested its business partners to initiate reduction of their own CO2 footprint.

Furthermore, PUMA will support the offsetting of its employees’ carbon footprints by subsidizing those emissions generated on the way to and from work by 50%. PUMA CEO Jochen Zeitz will also offset his personal carbon footprint, including direct and indirect CO2 emissions, on his own account.

Further information on PUMA’s sustainability program and current initiatives can be found in PUMA’s sustainability report. http://ir2.flife.de/data/puma_csr/igb_html/index.php?bericht_id=1000001

Notes to Editors:

Many carbon emissions [outlined above] are not part of the Kyoto Protocol and hence PUMA’s actions are entirely voluntary. PUMA’s carbon offsetting does not include carbon emissions through transport and manufacturing of PUMA products.

Twenty strategic PUMA suppliers based in China, Vietnam, Cambodia and other countries – which produce together more than two thirds of all PUMA products consumed – will receive GRI certified training on transparent measurement and reporting on their sustainability performance using the GRI G3 Guidelines – the world’s most widely-used framework for sustainability reporting. The training within the Global Action Network for Transparency in the Supply Chain program (GANTSCh) will be conducted by GRI Certified Training Partners. During the reporting process, scheduled to start in 2010, the suppliers will be supported by regional sustainability consultants and the first sustainability reports are expected to be released in 2011/2012.

“Supply chain sustainability reporting is a key part of PUMA’s overall sustainability strategy,” said Dr. Reiner Hengstmann, Global Director of puma.safe supply chain. “Without sustainable suppliers, we will not be able to produce sustainable products or credibly report about PUMA’s own sustainability initiatives. The GANTSCh project helps to ensure that our suppliers fully embrace the concept of sustainability and introduce respective programs in their companies.”

PUMA originally joined the GRI-GTZ pilot project “Transparency in the Supply Chain” which was launched in 2006 in which three PUMA suppliers in South Africa were trained and consulted on issuing sustainability reports. According to the participants, the project helped them to understand sustainability concepts through direct training from experts in the field, to learn how to measure sustainability performance by using key performance indicators, to become more transparent and learn how to report on energy consumption, waste production, work accidents and many other issues. They expanded their understanding of customers’ needs regarding sustainability issues and improved their competitive advantage and reputation.

“Some companies show consequent commitment in building a sustainable future. Puma is one of these companies,“ said Dr. Nelmara Arbex, Learning Services Director, GRI. “PUMA is not only committed to measure and manage their own impacts but they also understand that these practices have to be implemented around its business. GRI is very pleased that PUMA, which has participated in the GRI/GTZ project from the beginning, has decided to extend the GRI reporting practice to all its strategic suppliers.“ One of the participants in the pilot project, Impahla Clothing, a PUMA apparel manufacturer in Cape Town, received the ACCA Award (Association of Chartered Certified Accountants) for its maiden sustainability reports. Impahla also became the first carbon neutral garment supplier on the African continent in 2009, after the factory management was introduced to the benefits of sustainability through the project. Only recently, Impahla issued its third sustainability report. https://safe.puma.com/us/en/

The second phase of the project is currently in progress under the GANTSCh program with ten suppliers in six countries (Bangladesh, China, India, Pakistan, Portugal and Turkey) participating. Including Impahla, three suppliers already released their new sustainability reports while the remaining factories will publish their reports later in the Football World Cup year 2010.

PUMA’s mission is to become the most desirable and sustainable sportlifestyle company and it has implemented a long-term sustainability program throughout all its operations. Increasing sustainability in its supply chain through sustainability reporting is therefore an important element in PUMA’s overall sustainability strategy.

Proactively responding to accusations of low labour standards in its supplier factories by non-governmental organizations in the past, PUMA endeavours to increase transparency in its supply chain. Especially in countries such as China, India or Bangladesh, where working and living conditions differ from standards in developed countries, transparent social and working conditions play an important role in PUMA’s sustainability approach. PUMA continues to improve working and social standards through factory audits and capacity building projects over time and PUMA aims to work with the best suppliers in these countries. Sustainability reporting of the suppliers provides the opportunity to reveal what has already been achieved and where more work is necessary.

GRI’s engagement with PUMA commenced in 2006 with the generous support of the Gesellschaft für Technische Zusammenarbeit (GTZ) in the joint GRI-GTZ Transparency in the Supply Chain Pilot Project. GTZ is a federally owned, international cooperation enterprise for sustainable development with worldwide operations which supports the German Government in achieving its development policy objectives.

“Sound reporting is an important catalyst for change towards more sustainable business practices.” said Jörg Hartmann, Executive Director, Centre for Co-operation with the Private Sector/ PPP, GTZ. “I am very pleased that the pioneering „Transparency in the Supply Chain“ project set up by the GRI and the German Government four years ago is now established as a Global Action Network. I am convinced that many SMEs in emerging markets can benefit from the GANTSCh program“.

For further information on PUMA’s sustainability program, please refer to the latest PUMAVision Sustainability Report 2007/ 2008: https://ir2.flife.de/data/puma_csr/igb_html/index.php?bericht_id=1000001

For further information on GRI’s GANTSCh program, please refer to: www.globalreporting.org/CurrentPriorities/SupplyChain/GlobalActionNetwork/GAN.htm

PUMA’s Chief Executive Officer and Chief Sustainability Officer of PUMA’s majority shareholder PPR Jochen Zeitz who received the award from Federal Environment Minister Dr. Norbert Röttgen at the award ceremony in Düsseldorf said: “We are very pleased that PUMA’s extensive endeavours to become not only the most desirable but also the most sustainable Sportlifestyle Company worldwide have been recognized and rewarded with the German Sustainability Award. I am convinced that it must become a given that every company has to be sustainable and I am grateful that the German Sustainability Award acknowledges sustainable business strategies and hence underpins the imperative for corporations to change their business practices for the better.”

PUMA has been collecting E-KPIs (Environmental Key Performance Indicators) from all its offices and stores worldwide for the last five years and identified several key areas that need to be dealt with in order to further reduce PUMA’s “paw print”. To address these issues, PUMA has laid out ambitious targets to be achieved by 2015 as part of the company’s long-term sustainability program. Within this context, PUMA will introduce a Sustainability Index, the so-called S-Index that serves as an internal benchmark for sustainable products and communicates the products’ sustainable features to consumers. 50% of PUMA’s international collections will be manufactured according to the PUMA S-Index standard by 2015, using sustainable materials such as organic cotton, Cotton Made in Africa or recycled polyester as well as applying best practice production processes.

Furthermore, PUMA wants to reduce CO2, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories by 25% over the next four years. Introducing a paperless office policy will curtail paper usage by 75% and more efficient product transport solutions by our logistic partners should reduce their CO2 emissions by 25%. To monitor these objectives PUMA has also established an external Advisory Board of experts in sustainability to consult on PUMA’s mission and audit PUMA’s sustainability program.

The German Sustainability Award which runs in its third year has been established to reward role model corporations which combine business success with social responsibility and environmental protection. Special focus is on consistent sustainability management of business and brand. 560 companies had entered their application into the competition.

“We are very happy to announce the continuation of our partnership with the Cameroon Football Federation,” said Jochen Zeitz, Chairman and CEO of PUMA. “During the fourteen years we have worked with them, their forward thinking has allowed us to undertake and execute several exciting and innovative projects that simply would not be possible with other federations. They are one of our key partners in World football, and we have some great ideas that we look forward to unveiling in the coming months and years.”

“PUMA is a key partner for us, and when the previous agreement concluded there was never any question that we wouldn’t re-sign with them,” said Iya Mohammed, President of the Cameroon Football Federation. “PUMA understands implicitly what we want to achieve, and it is a privilege to work with a company with the same values and ambition. We look forward to working with them for many years to follow.”

In addition to the Cameroon national team sponsorship, PUMA also sponsors individual Cameroon players including captain and record goalscorer striker Samuel Eto’o, Benoit Assou-Ekotto, Stephane Mbia, Landry Nguemo and Mohammadou Idrissou.

In keeping with PUMA’s mission to be the most sustainable sportslifestyle brand, the Cameroon Football Federation will take a carbon neutral stance for the entirety of the partnership. Using UNEP’s carbon neutral standard, PUMA and the Cameroon Football Federation will offset the carbon footprint of the Federation through the next FIFA World Cups™.

PUMA’s commitment to Africa extends beyond team and player partnerships, as well. PUMA will continue to support a number of grass roots initiatives across the continent. Coinciding with this announcement, 10,000 durable footballs were delivered to Africa following a joint pledge in collaboration with Intersport® earlier this year, a third of which will go to football projects in Cameroon. PUMA was also the official sponsor and fanwear supplier of the 2010 African Cup of Nations in Angola.

For more information about PUMA Football, please visit www.pumafootball.com.

PUMA achieved a company score of 86 points, while the average score in the industry amounted to 54 points. The scores reflect the company’s performance across economic, environmental and social criteria compared to its industry peers and range on a scale from 0 to 100%. SAM, an investment boutique focused exclusively on Sustainability Investing, together with Dow Jones Indexes, rated PUMA’s economic dimension at 86, the environmental dimension at 100 while the social dimension was given a score of 80 in the year 2010.

Through PUMAVision, PUMA’s sustainability concept, the Sportlifestyle company has launched numerous initiatives to drive PUMA to cleaner, greener, safer and more sustainable systems and practices. PUMA’s longstanding work and efforts to improve social, labour and environmental standards throughout its operations date back to 1999. From that time, the company has continuously incorporated environmentally-friendly practices to reduce its impact on the planet and realized several successful large-scale initiatives such as sourcing of raw materials through the Cotton made in Africa campaign to building the capacity of its suppliers as well as the offsetting the company’s CO2 emissions as of 2010.

Furthermore, in acknowledging the PUMA EP&L today as an innovative sustainability approach, the PPR Group, PUMA’s majority shareholder, announced that this groundbreaking economic valuation methodology1 for a company’s environmental impacts will be implemented across its Luxury and Sport & Lifestyle brands by 2015.

After publishing an economic valuation of € 94 million of GHG emissions and water consumption in May this year2, PUMA has now finalised its 2010 E P&L by adding € 51 million caused by land use change for the production of raw materials, air pollution and waste along its value chain. Only € 8 million of the € 145 million total derive from PUMA’s core operations such as offices, warehouses, stores and logistics while the remaining € 137 million fall upon PUMA’s supply chain. These costs, which will not affect PUMA’s net earnings, will serve as an initial metric for the company when aiming to mitigate the footprint of PUMA’s operations and all supply chain levels.

“The unprecedented PUMA Environmental Profit and Loss Account has been indispensible for us to realize the immense value of nature’s services that are currently being taken for granted but without which companies could not sustain themselves,” said Jochen Zeitz, Executive Chairman of PUMA and Chief Sustainability Officer of PPR. “At PPR HOME, we view the PUMA EP&L as an essential tool to help drive PPR’s sustainability development across its Group of brands because analysing a company’s environmental impact through an E P&L and understanding where environmental measures are necessary will not only help conserve the benefits of ecosystem services but also ensure the longevity of our businesses. The results of the PUMA E P&L underpin the urgency for a paradigm shift in the way we all currently do business and I have been pleased to also see that the release of PUMA’s first results has generated widespread interest among governments, corporations, NGOs and academics.“

The PUMA E P&L and the associated methodology3 were developed with the support of PricewaterhouseCoopers LLP and Trucost PLC, using recognised ecological and economic techniques and building on a large volume of work in the fields of environmental and natural resource economics. The valuation of the overall results shows:

• PUMA’s supply chain is responsible for 94% or € 137 million of its total environmental impact.

• Over half (57% or € 83 million) of all environmental impacts are associated with the production of raw materials (including leather, cotton and rubber) in Tier 4 of PUMA’s supply chain4.

• Only 6% or € 8 million derive from PUMA’s core operations such as offices, warehouses, stores and logistics; a further 9% (€ 13 million) occur in Tier 1, with the remaining 85% (€ 124 million) in Tiers 2-4.

• GHGs make up 90% of the total impact of PUMA’s offices, stores and warehouses.

Alan McGill, partner, Sustainability and Climate Change, PwC, said: “These values are enough to make any business pay attention. The PUMA E P&L offers a real insight into the environmental consequences of commercial decisions and at the same time highlights potential commercial consequences of the environmental realities unfolding around the world. This will make many companies consider how they can apply similar analysis in their own organisations. Companies – big and small – are now reliant on global supply chains, making their environmental footprint much larger than many realise. Assigning economic values to the environmental impact of a company’s operations enables a business to tackle vital questions now, not just about environmental impacts, but business risk, costs savings and finding new ways to become more effective. Without measuring them, the impacts cannot be managed, or reduced.”

E P&L Results Break-Down

Water Use and Greenhouse Gas Emissions

The impacts of water use and GHGs were found to be roughly equal, together making up just under two thirds of the overall impact (around € 47 million each)5. (For more details, please refer to the press materials of PUMA’s May 2011 announcement on http://about.puma.com/?p=6644)

Land Use

Negative impacts on biodiversity and ecosystem services as a result of land-use for agriculture and buildings in PUMA’s supply chain are valued at € 37 million or 26% of the total E P&L. More than any other impact these costs are concentrated in Tier 4 with just 1% arising in PUMA’s operations and Tiers 1-3. Because leather is used extensively in footwear – PUMA’s dominant business line – and it is the most land extensive raw material that PUMA sources, the use of leather is the greatest single factor contributing to impacts on land-use. As a result, footwear accounts for € 34 million or 91% of the overall land-use impact.

Air Pollutants

The environmental damage caused by air pollution (particulates, ammonia, sulphur dioxide, nitrogen oxide, Volatile Organic Compounds (VOCs) and carbon monoxide) amounts to € 11 million, representing 7% of the E P&L total. Tier 4 is responsible for the lion’s share of the air pollution impact, valued at just over € 4 million. The single most significant contributor to this impact is ammonia emissions from animal waste and fertilisers used in agricultural processes.

Waste

The environmental impact caused by waste generation (landfill and incineration) is valued at € 3 million, representing 2% of the total PUMA E P&L. More than half of this derives from Tier 1 with some 21,000 tonnes of waste, followed by Tier 2 suppliers with some 8,000 tonnes and PUMA Operations with some 6,000 tonnes of waste. The vast majority of PUMA’s overall waste is produced in Asia / Pacific where most of PUMA’s suppliers are located.

Dr. Richard Mattison, Chief Executive Officer, Trucost said: “The current era of volatile resource prices, growing consumer and investor interest and greater regulatory standards mean that environmental issues are increasingly core to the business strategy. Water supplies, access to raw materials, a stable climate and clean air are vital to business operations, but many companies struggle to assess these issues due to their long and intricate supply chains. The Environmental Profit and Loss Account approach provides a robust framework to help companies unlock this complex challenge and embed sustainability at the heart of business decision making. PUMA has demonstrated that accounting for the environment is no longer a ‘holy grail’ objective, but simply makes good business sense.”

Responses to the PUMA 2010 Environmental Profit and Loss Account

The PUMA E P&L findings from 2010 have revealed that the lion share of PUMA’s environmental impact occurs within its supply chain of external partners, which the company has limited control over. In order to reduce the environmental impact at the lower end of the supply chain, PUMA is dependent on the cooperation of other industry players. To tackle this issue, PUMA has already started to gain support from national governments, environmental organizations, and representatives of science and industry to push for a shift in the current business paradigm towards a more sustainable approach; one that acknowledges the indispensible services provided by healthy ecosystems and respects their limits. The first step to achieving this change requires the services to be given monetary values in order to account for them when doing business.

At the same time, PUMA has started to implement solutions at its Tier 1 suppliers and within its own operations, where the company is able to provide support for change, independently.

Jochen Zeitz commented: “Reducing the environmental impacts that derive from PUMA’s supply chain represents a real challenge for us, as we have limited control over these activities and on further Tiers, suppliers can be shared by thousands of companies. However, we recognise that in order to make a real change we, along with our industry peers, have to work responsibly to help reduce the impacts of external supplier factories and raw material producers. In addition to driving innovation in various areas along our own supply chain and with our consumers, we also need the support of policy makers and the engagement of the whole industry to implement a new model for businesses that works with nature rather than against it and ultimately supports social and economic sustainability.”

Raising Awareness Among National Governments, the Industry and Science

The release of the initial E P&L results in May generated extensive media coverage and attained significant interest among governments, industry peers and international organizations.

Having been nominated as a co-opted member of the German Council for Sustainable Development, which advises the German government on sustainability issues, Jochen Zeitz presented the results and benefits of the PUMA E P&L to 15 Council members and a representative of the Federal Government last month. As a result, the council will launch a project that aims at implementing standards for PUMA’s environmental accounting statement and will promote the E P&L approach as an innovative practice in public debates.

The UK government featured PUMA’s groundbreaking analysis as a best practices case study for sustainable business in the Department for Environment, Food and Rural Affair (DEFRA) Natural Environment White Paper in June 2011. White papers are documents produced by the UK government setting out details of future policy on a particular subject, often forming the basis for legislative reform.

Also, the Co-Chair of the Investment Commission and Treasurer for the UN Environment Programme Financial Initiatives referred to the PUMA E P&L when speaking at the 2011 UNEP Financial Initiatives Global Roundtable in Washington last month. Further references have been made by sustainability experts Pavan Sukhdev6 and John Elkington7, the Harvard Business Review8, the Stanford Social Innovation Review9 and the World Business Council for Sustainable Development to name but a few.

Stepping up internal Resources at PPR and PUMA

In support of these findings, PPR and PUMA have stepped up their internal resources, hiring additional staff on a group level as well as within the PUMA.Safe team in order to address the challenge of reducing the environmental impact. On a corporate level, PPR is adding an Energy Management Specialist to its sustainability team, who will immediately begin to investigate opportunities for reducing Greenhouse Gas emissions. PPR has also hired a Conservation and Ecosystem Services Specialist who will be investigating the development of broadly-accepted definitions of sustainable cotton and rubber and internal standards for their sourcing.

To better target and focus its efforts, the PUMA.Safe team, which ensures that supplier factories adhere to PUMA’s social and environmental standards, has created both a Humanity and an Ecology team. Five additional environmental and social auditors will be joining the existing 13 employees in the PUMA.Safe team, so that environmental impacts at PUMA’s Tier 1 and Tier 2 suppliers can be better addressed and solutions for their reduction more rapidly developed. PUMA is also hiring a Chemical Engineer to look at solutions to identify more sustainable materials as well as supporting PUMA in phasing out harmful substances within the supply chain.

Developing synergies and partnerships

PUMA and PPR HOME have shared the results of the E P&L with other industry players and corporations to leverage adopting a new business model that takes the costs of using natural resources and eco-system services within corporate supply chains into account. Furthermore, PUMA has collected information on the environmental performance of suppliers which can be used to provide benchmarks for supplier performance targets and the sharing of best practice. PPR HOME will also leverage the lessons learned during PPR’s Group EP&L implementation stages in order to provide case studies across the Group’s companies and brands to assist in broader adoption among businesses.

Building Capacity to Penetrate the Supply Chain

PUMA has already stepped up its capacity building programme for its suppliers such as the CONSERV project at apparel and footwear factories in Vietnam. The project, which was launched in cooperation with the German investment and development organization DEG and international capacity building organization Assist Asia, will support the factories of Tier 1, Tier 2 and Tier 3 suppliers to reduce greenhouse gas emissions, secure availability of natural resources and minimize the risks from waste and pollution through the implementation of resource efficiency practices.

To reduce waste and keep products out of landfills, the Sportlifestyle company PUMA has installed recycling bins in PUMA Stores and outlets in Germany for customers to return used shoes, clothing and accessories of any brand.

The PUMA “Bring Me Back” program, which is run in cooperation with global recycling company I:CO, aims at encouraging the recycling and re-usability of sportlifestyle products among consumers by providing a convenient and simple process: Consumers bring used shoes, clothing and accessories from any manufacturer to a PUMA Store and deposit them in the designated Bring Me Back bins. The used products are then sent off to be re-used or recycled. This means they are either broken down and re-used to create raw materials, or they will be re-used in case they are still in a suitable condition, or they will be recycled into new products. With this new initiative PUMA helps to protect the environment, aspiring to eliminate waste by recycling used products to create new ones. This effort is one more step forward toward the long-term goal of transitioning to a closed cycle loop for materials usage.
“On our mission to become the most desirable and sustainable Sportlifestyle company in the world, we areconstantly working on solutions that aim at reducing the environmental impact that PUMA as a company leaves behind on our planet,” said Franz Koch, CEO of PUMA. “With our Bring Me Back-Program, we are pleased to target for the first time ever the massive amounts of waste sportlifestyle products leave behind at their end-of-life phase when consumers dispose them and they end up on landfills or in waste incineration plants.”

PUMA has implemented several initiatives and programs within its long-term sustainability program that foresees a reduction of 25% of carbon emissions, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories by 2015. With the innovative packaging system Clever Little Bag, that PUMA introduced in 2010 and that replaced traditional shoeboxes, the company already reached a milestone in reducing PUMA’s – and its consumers’ – environmental footprint significantly by saving more than 60% of paper and water annually.

In 2011, PUMA published the first-ever Environmental Profit and Loss Account that assessed and valued the environmental impacts of the company’s core operations (PUMA offices, stores and warehouses) and along its entire supply chain of production factories – from the level of raw material production to the final manufacturing of PUMA products. This analysis helped PUMA to determine the impacts that arise from the point of cotton or leather production to the point where PUMA products are sold in a PUMA store. However, a considerable part of PUMA’s environmental footprint comes about through the consumer disposal phase. The Bring Me Back program now addresses PUMA’s impact at that level, reducing the waste generation of sportlifestyle products.

The program furthermore sets the foundation for an initiative on products which are designed for recycling as PUMA is currently looking into solutions to develop recyclable or decompostable products. PUMA’s entire team is also working on achieving the company’s goal of having 50% of the international collections made of more sustainable materials by 2015. In 2011, about 16% of PUMA’s total apparel products were made of more sustainable materials such as recycled polyester, organic cotton and Cotton Made in Africa, proving that the company is right on track to reach this target.

Bring Me Back launches in PUMA Stores and Outlets across Germany from the 17 April 2012. PUMA Stores and Outlets include among others Berlin, Düsseldorf, Munich, Hamburg, Augsburg and Herzogenaurach. The program will roll out to a handful of additional markets in October 2012, with a full global roll-out slated for January 2013.

More information can be obtained on the soon to be launched website www.puma.com/bringmeback.

Notes to the Editors:

I:CO is a global recycling company that works in conjunction with retailers to house collection bins and give consumers a place where they can return old gear and help give valuable resources another life.

For further information and to find the nearest collection bin, visit puma.com/bringmeback (launched soon).