Publication / 08 Feb 2012

PUMA: Environmental Profit and Loss Account

PUMA worked with Trucost and PwC to produce the world’s first Environmental Profit and Loss Account.

PUMA

PUMA believes that businesses should account for and, ultimately, pay for the cost to nature of doing business. These costs do not currently hit the financial bottom line, but could easily do so in the future, for example, as a result of new government policy, environmental activism, consumer demand, growing scarcity of raw materials, or as a direct consequence of escalating environmental degradation.

PUMA developed the Environmental Profit and Loss Account (EP&L) to help identify and manage these risks, while simultaneously sharpening its focus in pursuit of new and sustainable business opportunities. A challenge for all companies is to build an increasingly sustainable and resilient business model while also delivering multiple competitive advantages. PUMA aims to be the world’s most desirable and sustainable Sportlifestyle company and the EP&L is one of the principal tools by which they hope to gain the information and insight required to set the strategy to achieve this.

The EP&L revealed that the total monetary impact of PUMA’s direct and supply chain operations was valued at EUR 145 million. The greatest impacts are from the use of water and the generation of greenhouse gas emissions, at EUR 47 million each. The conversion of land for agriculture for key raw materials such as leather, cotton and rubber is the third greatest impact at EUR 37 million. Just 6% (EUR 8 million) of the impacts arise in PUMA’s own operations, with a further 9% (EUR 13 million) caused by their direct suppliers (Tier 1). This leaves 85% of the impact outside what can be considered areas in which the company has direct control or influence.

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