Innovation Case Study by Stefan Seidel, Team Head PUMA.Safe Ecology, PUMA PUMAS PRODUCT LEVEL ENVIRONMENTAL PROFIT & LOSS ACCOUNT (EP&L) AND INCYCLE COLLECTION 1 Mission This is what drives us We want to be the most desirable and sustainable Sportlifestyle Company. We are committed to working in ways that contribute to a better 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. 2 Sustainability scorecard Our goals for 2015 3 • What would it cost, if nature sent us a bill? • As the first company worldwide, PUMA has completed and published an economic valuation of the environmental impacts along its entire value chain. • First step to reduce your environmental impact is to know your impact. 4 E P&L Which impacts along the value chain are covered? Operations: Offices, shops, business travel, warehouses, logistics Operations Manufacturing: Apparel, shoes and accessories Tier 1 Outsourcing: Embroiderers, printers, outsole producers Tier 2 Processing: Tanneries, chemical companies, oil refiners Tier 3 Raw materials: Cotton farming, cattle ranching, oil drilling Tier 4 5 PUMA EP&L Results 2011 Impact vs. influence 6 Group-wide E P&L roll-out by 2016 Across all Kering brands GUCCI · BOTTEGA VENETA · SAINT LAURENT · ALEXANDER McQUEEN BALENCIAGA · BRIONI · STELLA McCARTNEY · SERGIO ROSSI · BOUCHERON GIRARD-PERREGAUX · JEANRICHARD · QEELIN · CHRISTOPHER KANE PUMA · VOLCOM · COBRA · ELECTRIC · TRETORN 7 Incycle products Fully recyclable or biodegradable product series launched in 2013 8 Incycle products Cradle to Cradle philosophy 9 Incycle products Cradle to Cradle philosophy 10 Incycle products 11 Incycle products 12 ARE INCYCLEPRODUCTS REALLY MORE SUSTAINABLE? 13 Comparative product E P&L analysis Full impact quantified & broken down on individual products The Product level E P&L extends our unique E P&L analysis to the product level further highlighting the extent of PUMAs impact on ecosystem services and its associated drivers. Comparative analysis of four footwear and apparel products including InCycle collection Analysis highlights PUMAs “more sustainable” products create up to 30% less environmental impact than conventional products 14 Product view including „end of life“ impact Data across full lifecycle DISPOSAL TIER 4 CONSUMER AVAILABLE GERMAN LCA DATA OPERATIONS PRIMARY DATA TRUCOST MODEL TIER 3 PRIMARY + SECONDARY DATA TIER 2 TIER 1 15 INCYCLE SHOE: 35% GHG SAVINGS 16 Conventional product vs. InCycle product InCycle: 31% impact reduction -31% 17 Moving sustainability to the next level Compliance audits Sustainable compliance Products without hazardous substances More sustainable products E-KPI monitoring Sustainability management and full transparency in the supply chain Additional cost Visible added value for the consumer and our stakeholders 18 “The business of business is business?” But “Business as usual” is no longer an option! 19 THANK YOU! 20