Introduction to Puma

Puma, a renowned global sportswear brand founded in 1948, has emerged as a leader in sustainable practices within the fashion industry. With a strong commitment to reducing its ecological footprint, Puma has implemented a wide range of initiatives aimed at mitigating environmental impact across various aspects of its operations. From carbon footprint reduction and energy consumption management to recycling rates and water stewardship, Puma’s sustainability efforts span the entire supply chain. This comprehensive analysis delves into Puma’s sustainability performance, highlighting its achievements, initiatives, and commitment to environmental stewardship.

Forever, Better.

Criteria

Carbon Footprint, High

Puma is actively reducing its carbon footprint through various initiatives. It’s transitioning to electric vehicles, using green energy in facilities, and procuring Renewable Energy Attribute Certificates where green energy isn’t available. Additionally, Puma aims to cut Scope 3 emissions by 60% by 2030. These efforts align with its goal to achieve a 35% reduction in greenhouse gas emissions by 2030, compared to 2017 levels, endorsed by the Science Based Target Initiative.

Ecological Impact, High

Puma’s commitment to sustainability is evident in its multifaceted approach to mitigating ecological impact. The company has taken significant steps towards environmental responsibility, particularly in utilizing eco-friendly materials and reducing the release of toxic substances during fabric dyeing and laundering processes. Puma’s sustainability initiatives extend to various aspects, including reducing greenhouse gas emissions, transitioning to renewable energy sources, and increasing the incorporation of recycled materials into its products. Notably, Puma has made substantial progress in cutting carbon emissions and aims to further enhance its sustainability practices in alignment with its Forever Better sustainability strategy.

Energy Consumption, High

Puma has demonstrated a strong commitment to managing its energy consumption effectively, implementing a range of initiatives to drive sustainability throughout its operations. This includes transitioning to 100% renewable electricity usage via renewable electricity tariffs and certificates, alongside installations such as solar panels on its headquarters and stores. Additionally, the company has significantly reduced its carbon emissions by moving its car fleet to electric engines, integrating more sustainable materials into its products, and focusing on energy efficiency improvements at the factory level. Looking ahead, Puma aims to further promote sustainability by targeting a 25% share of renewable energy for its core Tier 1 and Tier 2 suppliers by 2025.

Freight Density, High

Puma has optimized freight density and transport processes by increasing outbound truck density through right-sized packaging, leading to space savings and reduced shipping costs. Additionally, investments in advanced warehouse systems like AutoStore Black Line have boosted capacity and speed, exemplified by the Indianapolis facility offering ten times more capacity and 20% greater speed than its California counterpart.

Recycling Rates, High

Puma has demonstrated a strong commitment to recycling and sustainability, achieving an average recycling rate of over 60% and aiming to produce 90% of its products with recycled content by 2025. The company has significantly increased its use of recycled materials in products, with over 50% of polyester in apparel and accessories sourced from recycled materials.

Initiatives like RE:SUEDE and RE:FIBRE highlight Puma’s dedication to sustainable innovation.

Saving Levels, Medium

Puma has significantly reduced carbon emissions by 88% since 2017 and transitioned to renewable energy sources. By expanding the use of recycled materials and promoting sustainable practices, the company is dedicated to enhancing its sustainability performance across operations and the supply chain.

Specific Product Monitoring, Medium

Puma has implemented comprehensive strategies to enhance the sustainability performance of its products. This includes ensuring product safety and compliance with stringent standards, reducing plastic usage by eliminating plastic bags from stores and increasing the use of recycled materials, particularly recycled polyester. Initiatives like RE:SUEDE and RE:JERSEY highlight their commitment to eco-friendly materials. The company is also actively working to minimize water and air impact by adhering to industry best practices and is committed to biodiversity conservation by sourcing materials from certified and traceable sources.

Supply Chain Waste, Medium

Puma has implemented robust measures to monitor and enhance the sustainability of its supply chain waste. This includes conducting energy efficiency audits, transitioning to industry-wide assessment tools like the Higg Index Facility Environmental Module (FEM) 3.0, and setting ambitious goals for environmental performance improvement such as aiming for an average FEM score of 64% for core suppliers by 2023. The company focuses on initiatives such as cleaner production, renewable energy projects, and chemical management to reduce carbon emissions and promote circularity

Sustainability Scorecards, Medium

Puma tops the fashion industry’s sustainability charts, scoring 49/100 in the Business of Fashion Sustainability Index 2022. It excels in worker’s rights, water & chemicals, transparency, and emissions. With a “Good” rating on the Good On You Directory, PUMA’s environmental policies, including carbon emissions and product circularity, are lauded. According to Corporate Knights’ 2023 Global 100 ranking, Puma improved its ranking from 77 to 47 (Grade B-). The brand’s sustainability efforts have also earned recognition in other assessments like the S&P Corporate Sustainability Assessment and the CDP A List for Climate Leaders, showcasing its commitment across its operations and supply chain.

Water Management, High

Puma is dedicated to responsible water management across its operations and supply chain. The company focuses on reducing water usage and improving efficiency, with core suppliers achieving a 44% reduction in water usage per apparel piece. Puma conducts risk assessments for water stewardship in vulnerable regions, collaborating with suppliers to mitigate risks and set consumption targets. Rainwater collection and wastewater treatment initiatives further demonstrate its commitment to sustainability.

By ensuring transparency and compliance with environmental guidelines, Puma underscores its dedication to responsible water management and environmental stewardship.

Conclusions

Puma leads in sustainable fashion, prioritizing reduced ecological impact and environmental stewardship. Their initiatives span carbon footprint reduction, energy efficiency, recycling, and water management.

While scoring well in sustainability assessments, achieving a 4/5 rating, Puma aims for improvement, focusing on waste reduction, consistent sustainability standards across products, and ambitious goals for carbon emissions and energy conservation.

Committed to ongoing progress, Puma sets the bar for responsible business and environmental leadership.

Related to other brands

Number of criteria met by each brand:

ESCP Business School Team

Research developed by five curious international ESCP Business School students who have worked together to successfully complete their consulting project. They analysed four brands in four different categories -20 brands: sneakers, pod coffee, jeans, makeup, and chocolate, according to 10 environmental criteria.

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