puma sustainability strategy & performance

PUMA SUSTAINABILITY STRATEGY & PERFORMANCE

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AGENDA

Sustainability at PUMA

10FOR20 Targets Update

Looking Beyond 10FOR20

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Collaboration & SLCP Engagement

AGENDA

Sustainability at PUMA

10FOR20 Targets Update

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Looking Beyond 10FOR20

Next Steps

Collaboration & SLCP Engagement

SOCIALENVIRONMENTAL

ECONOMIC

Forever Faster & Sustainability

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FOREVER MEANS SUSTAINABLE

Caring for the needs of the present

without compromising future needs

FASTER IN RESPONDING

to economic, environmental and social

opportunities and challenges we face

Mainstreaming Sustainability

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SUSTAINABLE

BUSINESS

SUSTAINABILITY

SEPARATE FROM

BUSINESS

SUSTAINABILITY

EMBEDDED IN BUSINESS

DECISIONS

BUSINESS

SUSTAINABILITY

PUMA´s Sustainability Milestones

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99

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06

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13

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17

Code of

Conduct

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93

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11

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04

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02

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16

Sustainability

Report:

“Insights“

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Fair Labor

Association

PUMA EP&L Better Cotton

Initiative

Factory Audit

System Talks at Banz

UN Global

Compact

InCycle

Collection Right To Play

AGENDA

Sustainability at PUMA

10FOR20 Targets Update

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Looking Beyond 10FOR20

Next Steps

Collaboration & SLCP Engagement

10FOR20: CREATE POSITIVE IMPACT

WATER & AIRSDG 6

HUMAN RIGHTSSDG 3, 4, 5 AND 10

ENVIRONMENTAL

P&LSDG 7 AND 12

CORPORATE

GOVERNANCESDG 8 AND 16

STAKEHOLDER

ENGAGEMENTSDG 17

HEALTH & SAFETYSDG 3

CLIMATESDG 3

SOCIAL

COMPLIANCESDG 3, 5, 8 AND 10

CHEMICALSSDG 3 AND 6

MATERIALSSDG 12 AND 15

SUSTAINABILITY

TARGETS 2020SU

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Sustainability Organization @ PUMA

IAF

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1 2 3 4TARGETS ACTIONS

PERFORMANC

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Stakeholder Engagement

> Continue GRI reporting

> Global stakeholder meeting

in Asia

> Supplier Round Tables

including external

stakeholders

> Combined annual and

sustainability report

> Talks in Hong Kong + side

meetings (Climate Change

and Human Rights)

> Supplier Round Tables in all

major sourcing countries

> S-DAX Award (silver) for

annual reports 2015 and

2016

> Global stakeholder meeting

moved to Asia

> 302 suppliers reached on

Round Table Meetings

Stakeholder dialogue; Public reporting (GRI); Consumer

information

*relates to SDG 17

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1 2 3 4TARGETS ACTIONS

PERFORMANC

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Materials

> BCI cotton: 50%

> bluesign polyester: 50%

> FSC paper/cardboard: 90%

> Leather Working Group

leather: 90%

> Main cotton suppliers work

with BCI

> bluesign introduced during

Supplier Round Tables

> Certified shoe boxes, Retail

bags and eCOM packaging

> Leather tracing project

> BCI cotton:

35% 2017

> bluesign polyester:

41% 2017

> FSC paper/ cardboard:

89% 2017

> 98%LWG leather: achieved

More sustainable alternatives used for our key material

(cotton, polyester, leather, cardboard, PU)

*relates to SDG 12 and 15

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1 2 3 4TARGETS ACTIONS

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Social Compliance

> Industry wide audit scheme

> No open Zero Tolerance

Issues at year end

> Include core Tier-2 suppliers

> Promote advanced worker

voice tool

> Support of Social & Labor

Convergence Project

> Immediate follow-up for ZTIs

> 63 Tier-2 suppliers defined as

core

> Pilot Micro Benefit project

> 25% shared audits in 2017

> No open ZTIs at year end

2017

> all core Tier-2 suppliers

audited 2016/ 2017

> Two China based factories

joined pilot

Compliance with industry standards/ ILO, Core Conventions for all core

suppliers, including suppliers of finished goods, components, and materials

*relates to SDG 3, 5, 8 and 10

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TARGETS ACTIONSPERFORMANC

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Embed Human Rights across our operations and suppliers.

Positively impact the communities where PUMA is present

Human Rights

> Corporate human rights

assessment

> Supply Chain human

rights assessment

> Community

Engagement

> Results published 2016

> Results to be published

2017

> Women empowerment

project started

> Right To Play Partnership

> Development of ware-

house audit (ongoing)

> Focus on Raw Materials

> Community Engagement

Day at PUMA HQ

> Ghana football pitch

*relates to SDG 3, 4, 5 and 10

1 2 3 4

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1 2 3 4TARGETS ACTIONS

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Zero fatal accidents; Injury rate below industry average

Health & Safety

> Zero fatal accidents

> Average injury rates

reduction

> Core supplier Risk

Assessment review

> Workshops for suppliers

> Building safety

inspections in high risk

countries

> One fatal accident in

Bangladesh: Worker

drowned in waste water

treatment plant

> Injury rate below 1 in

2017

*relates to SDG 3

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1 2 3 4TARGETS ACTIONS

PERFORMANC

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Science-based CO2 reduction target to be

developed and implemented (2020)

Climate Change

> Agreement of Science-

Based Targets

> 3% interim emission

reduction relative to turnover

> Target development with

SBT-Initiative (ongoing)

> Energy efficiency and

renewables project with IFC

and core suppliers

> Industry-wide alignment

> SBT development

ongoing

> IFC Vietnam Program

started 2016

> 3% interim target met

2016

> Industry meeting

Tuesday*relates to SDG 13

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1 2 3 4TARGETS ACTIONS

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Water & Air

> Implementation of ZDHC

wastewater guideline at

PUMA core suppliers

> Development of air

emissions guideline

> Leading ZDHC wastewater

guideline development

> Support of core suppliers in

implementation

>Wastewater test results

published since 2015

> 50 core suppliers

implemented guidelines

> Air emissions guideline

baseline under development

Industry Good Practice for effluent treatment and air emissions are met by 90% of

PUMA core suppliers with wet processing facilities or responsible for significant

air emissions

*relates to SDG 6

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1 2 3 4TARGETS ACTIONS

PERFORMANC

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Zero Discharge of Hazardous Chemicals from our supply

chain

Chemicals

> RSL failures below 3%

> M-RSL Implementation

>VOC Index target:

15g/pair

> Move out of PFC

chemistry

> 4500 RSL tests 2017

> M-RSL Introduction to all

suppliers

> Hotmelt and water-

based adhesives

> Substitution of water-

repellent finishes

> YTD failure average:

<3%

> Chemicals Gateway

launched by ZDHC

➢ VOC average: 20g/pair

2017 and 21g/pair 2016

> Products >99% PFC-free

*relates to SDG 3 and 6

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1 2 3 4TARGETS ACTIONS

Environmental Profit & Loss Account

> PUMA EP&L to be

published first time since

2011

> Lower EP&L value over

time

> Published on website and

conference

> Material targets support

EP&L value reduction

>Climate Change targets

support EP&L value reduction

PERFORMANC

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> Δ 2014: -3,3% absolute,

+0,3% relative

> Δ 2015: +5,7% absolute,

-7,3% relative

> Δ 2016 +3,6% absolute,

-7,5% relative

*relates to SDG 7 and 12

Continue to report yearly on our environmental impact under the lead of Kering

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1 2 3 4TARGETS ACTIONS

PERFORMANC

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Corporate Governance

> Develop and implement

anti-corruption policy

> Supplier trainings on anti-

corruption

> High participation rate in

ethics training (PUMA)

> Policy released and trained

> Core supplier trainings via

UN online tool

> Anti-corruption session

during Round Table Meetings

> Anti-corruption and Code of

Ethics training (PUMA)

> 99% of PUMA employees

with email account trained on

anti-corruption 2017

> 90% of core suppliers

trained on anti-corruption

Maintain and run a state of the art Compliance Management

System (incl. anti-corruption measures)

*relates to SDG 8 and 16

AGENDA

Sustainability at PUMA

10FOR20 Targets Update

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Looking Beyond 10FOR20

Next Steps

Collaboration & SLCP Engagement

PRODUCT PACK

100%

ORGANIC

COTTON

GRAPHIC

ELEMENTS

CALLING

OUT

SUSTAINABILITY

CARBON

NEUTRAL

AGENDA

Sustainability at PUMA

10FOR20 Targets Update

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Looking Beyond 10FOR20

Next Steps

Collaboration & SLCP Engagement

Next Steps

1. Continue our 10FOR20 Strategy on Impact

2. Sustainable Capsule ASOS May (organic)

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3. Include Footwear for ASOS in Fall?

(recycled)

5. Start looking at more material alternatives?

4. Scale up DMF-free Polyurethane

AGENDA

Sustainability at PUMA

10FOR20 Targets Update

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Looking Beyond 10FOR20

Collaboration & SLCP Engagement

Next Steps

Audit Collaboration with Peers

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Collaboration & SLCP Engagement

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➢PUMA is a signatory and favor

of SLCP implementation.

➢ Involved to developments from

the beginning of the project in

several committees.

➢Committed to support light

operation in Q4, 2018 in China

and Sri Lanka and beyond.