Innovation Case Study by Stefan Seidel, Team Head PUMA.

Safe
Ecology, PUMA
PUMAS PRODUCT LEVEL ENVIRONMENTAL
PROFIT & LOSS ACCOUNT (EP&L) AND
INCYCLE COLLECTION

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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.
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Sustainability scorecard
Our goals for 2015

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 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.

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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

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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

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The S-Index
Sustainability-index for product and packaging

What is the PUMA S-INDEX?

Set of sustainability criteria for products
Innovation and adoption driver for more sustainable design
Standard / measure across PUMA product teams and BUs
Indicator of more sustainable products by PUMA

PUMAs objective is that 50% of its international product

collections in footwear, apparel and accessories and 100% of its
packaging are S-INDEX approved by 2015.

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 S-Index
Product sustainability rating criteria

>50% A/B+
sustainable
material rated

>50% B/C
sustainable
material rated

< 50% A/B+

sustainable
material rated

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Innovation & Sustainability Apparel
 S-Index Criteria
>50%
A/B+
sustainable
material rated

Fabrication: Percentage of sustainable material content

0-19 20-39 40-59 60-79 80-100

1 2 3 4 5

Garment: Percentage of sustainable material (weight)

0-24 25-49 50-64 65-79 80-100

1 2 3 4 5

Garment Maker: SAFE Rating (total rating)

D C B- B+ A
1 2 3 4 5

NO YES
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Innovation & Sustainability Apparel
 S-Index: Fabrics
Material sustainability

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Innovation & Sustainability Apparel
 S-Index
Progress towards our 2015 target
>50%
A/B+
sustainable
material rated

Linked to order system and Target

Results S-Index Materials
can identify the levels 3, 4, 5
Results incl. SAFE Rating

Calculation of volume of
orders which are in factory
50%
A, B+
Targets are given per
26%
business category 20% 22%
13%
Broken down per line 5% 5%
10% 8%

Incremental over the next 201 2011 201 201

0 2 5
few seasons to achieve our
goal 12
Innovation & Sustainability Apparel
Products made of more sustainable raw materials

PUMA Re-Suede
100% recycled materials
for uppers
80% reduction in energy
and CO2 emission
compared to production of
virgin materials

Organic cotton golf shirt

100% organic cotton

PUMA is the 7th biggest buyer

of organic cotton worldwide
2011 Organic Cotton Market Report.
Textile Exchange. 2011

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Clever little bag

Re-useable shoe bag

Significant reduction of raw materials
Decreased packaging weight and lower transportation costs
Eliminates need for carrier bags when purchasing only footwear
Made of recycled materials

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Projected savings for CLB 1.0

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Incycle products
Fully recyclable or biodegradable product series launched
in 2013

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Incycle products
Cradle to Cradle philosophy

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Incycle products
Cradle to Cradle philosophy

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Incycle products

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Incycle products

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On product communication
Distinct labeling of sustainable products

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Retail implementation of Bring Back Box

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 ARE INCYCLE-
PRODUCTS REALLY
MORE
SUSTAINABLE?
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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

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 Product view including end of life impact
Data across full lifecycle

DISPOSAL
TIER 4

AVAILABLE
GERMAN TRUCOST
CONSUMER LCA DATA MODEL
TIER 3

PRIMARY +
SECONDARY
PRIMARY DATA
OPERATIONS DATA TIER 2

TIER 1
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INCYCLE SHOE: 35% GHG SAVINGS

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Conventional product vs. InCycle product
InCycle: 31% impact reduction

-31%

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Moving sustainability to the next level

Compliance audits Sustainable compliance

Products without hazardous

More sustainable products
substances

Sustainability management
E-KPI monitoring and full transparency in the
supply chain

Visible added value for the

Additional cost consumer and our
stakeholders

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The business of business is business?
But
Business as usual
is no longer an option!

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THANK YOU!

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