EANS-News: PUMA Completes First Environmental Profit and Loss Account which values Impacts at EUR 145 million (with photo)

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Strategic management decisions

Herzogenaurach (euro adhoc) - PUMA Completes First Environmental
Profit and Loss Account which values Impacts at EUR 145 million

Impact of EUR 51 million resulting from land use, air pollution and
waste along the value chain added to previously announced EUR 94
million for GHG emissions and water
consumption

PUMA´s Parent Company PPR announced its Luxury and Sport & Lifestyle
Brands to implement a Group EP&L by 2015

Munich, 16 November 2011 - Within the context of publishing a
worldwide unprecedented Environmental Profit and Loss Account (EP&L),
the Sportlifestyle company PUMA and PPR HOME, the PPR Group´s
sustainability initiative, released today, that the environmental
impact for the key areas of greenhouse gas emissions (GHG),
water use, land use, air pollution and waste, generated
through the operations and supply chain of PUMA is valued at EUR 145
million in 2010. Furthermore, in acknowledging the PUMA EP&L
today as an innovative sustainability approach, the PPR Group,
PUMA´s majority shareholder, announced that this groundbreaking
economic valuation methodology1 for a company´s environmental
impacts will be implemented across its Luxury and Sport &
Lifestyle brands by 2015.

After publishing an economic valuation of EUR 94 million of GHG
emissions and water consumption in May this year2, PUMA has now
finalised its 2010 E P&L by adding EUR 51 million caused by land
use change for the production of raw materials, air pollution
and waste along its value chain. Only EUR 8 million of the EUR 145
million total derive from PUMA´s core operations such as offices,
warehouses, stores and logistics while the remaining EUR 137
million fall upon PUMA´s supply chain. These costs, which will not
affect PUMA´s net earnings, will serve as an initial metric for
the company when aiming to mitigate the footprint of PUMA´s
operations and all supply chain levels.

"The unprecedented PUMA Environmental Profit and Loss Account
has been indispensible for us to realize the immense value of
nature´s services that are currently being taken for granted but
without which companies could not sustain themselves," said Jochen
Zeitz, Executive Chairman of PUMA and Chief Sustainability
Officer of PPR. "At PPR HOME, we view the PUMA EP&L as an
essential tool to help drive PPR´s sustainability development across
its Group of brands because analysing a company´s environmental
impact through an E P&L and understanding where environmental
measures are necessary will not only help conserve the benefits of
ecosystem services but also ensure the longevity of our
businesses. The results of the PUMA E P&L underpin the urgency
for a paradigm shift in the way we all currently do business and I
have been pleased to also see that the release of PUMA´s first
results has generated widespread interest among governments,
corporations, NGOs and academics."

The PUMA E P&L and the associated methodology3 were developed with
the support of PricewaterhouseCoopers LLP and Trucost PLC, using
recognised ecological and economic techniques and building on a
large volume of work in the fields of environmental and natural
resource economics. The valuation of the overall results shows:

• PUMA´s supply chain is responsible for 94% or EUR 137 million of its total
environmental impact.
• Over half (57% or EUR 83 million) of all environmental impacts
are
associated with the production of raw materials (including leather, cotton
and rubber) in Tier 4 of PUMA´s supply chain4.
• Only 6% or EUR 8 million derive from PUMA´s core operations such as
offices,
warehouses, stores and logistics; a further 9% (EUR 13 million) occur
in
Tier 1, with the remaining 85% (EUR 124 million) in Tiers 2-4.
• GHGs make up 90% of the total impact of PUMA´s offices, stores and
warehouses.

Alan McGill, partner, Sustainability and Climate Change, PwC,
said: "These values are enough to make any business pay attention.
The PUMA E P&L offers a real insight into the environmental
consequences of commercial decisions and at the same time highlights
potential commercial consequences of the environmental realities
unfolding around the world. This will make many companies
consider how they can apply similar analysis in their own
organisations. Companies - big and small - are now reliant on global
supply chains, making their environmental footprint much larger than
many realise. Assigning economic values to the environmental
impact of a company´s operations enables a business to tackle
vital questions now, not just about environmental impacts, but
business risk, costs savings and finding new ways to become more
effective. Without measuring them, the impacts cannot be managed,
or reduced."

E P&L Results Break-Down Water Use and Greenhouse Gas Emissions The
impacts of water use and GHGs were found to be roughly equal,
together making up just under two thirds of the overall impact
(around EUR 47 million each)5. (For more details, please refer to
the press materials of PUMA´s May 2011 announcement on
http://about.puma.com/?p=6644)

Land Use Negative impacts on biodiversity and ecosystem services as a
result of land-use for agriculture and buildings in PUMA´s supply
chain are valued at EUR 37 million or 26% of the total E P&L.
More than any other impact these costs are concentrated in
Tier 4 with just 1% arising in PUMA´s operations and Tiers 1-3.
Because leather is used extensively in footwear - PUMA´s dominant
business line - and it is the most land extensive raw material that
PUMA sources, the use of leather is the greatest single factor
contributing to impacts on land-use. As a result, footwear accounts
for EUR 34 million or 91% of the overall land-use impact.

Air Pollutants The environmental damage caused by air pollution
(particulates, ammonia, sulphur dioxide, nitrogen oxide, Volatile
Organic Compounds (VOCs) and carbon monoxide) amounts to
EUR 11 million, representing 7% of the E P&L total. Tier 4 is
responsible for the lion´s share of the air pollution impact, valued
at just over EUR 4 million. The single most significant contributor
to this impact is ammonia emissions from animal waste and
fertilisers used in agricultural processes.

Waste The environmental impact caused by waste generation (landfill
and incineration) is valued at EUR 3 million, representing 2% of the
total PUMA E P&L. More than half of this derives from Tier 1 with
some 21,000 tonnes of waste, followed by Tier 2 suppliers with some
8,000 tonnes and PUMA Operations with some 6,000 tonnes of
waste. The vast majority of PUMA´s overall waste is produced in
Asia / Pacific where most of PUMA´s suppliers are located.

Dr. Richard Mattison, Chief Executive Officer, Trucost said: "The
current era of volatile resource prices, growing consumer and
investor interest and greater regulatory standards mean that
environmental issues are increasingly core to the business
strategy. Water supplies, access to raw materials, a stable
climate and clean air are vital to business operations, but many
companies struggle to assess these issues due to their long and
intricate supply chains. The Environmental Profit and Loss Account
approach provides a robust framework to help companies unlock this
complex challenge and embed sustainability at the heart of business
decision making. PUMA has demonstrated that accounting for the
environment is no longer a `holy grail´ objective, but simply
makes good business sense."

Responses to the PUMA 2010 Environmental Profit and Loss Account The
PUMA E P&L findings from 2010 have revealed that the lion share of
PUMA´s environmental impact occurs within its supply chain of
external partners, which the company has limited control over. In
order to reduce the environmental impact at the lower end of
the supply chain, PUMA is dependent on the cooperation of
other industry players. To tackle this issue, PUMA has already
started to gain support from national governments, environmental
organizations, and representatives of science and industry to push
for a shift in the current business paradigm towards a more
sustainable approach; one that acknowledges the indispensible
services provided by healthy ecosystems and respects their
limits. The first step to achieving this change requires the
services to be given monetary values in order to account for them
when doing business.

At the same time, PUMA has started to implement solutions at
its Tier 1 suppliers and within its own operations, where the
company is able to provide support for change, independently.

Jochen Zeitz commented: "Reducing the environmental impacts that
derive from PUMA´s supply chain represents a real challenge for
us, as we have limited control over these activities and on
further Tiers, suppliers can be shared by thousands of companies.
However, we recognise that in order to make a real change we,
along with our industry peers, have to work responsibly to help
reduce the impacts of external supplier factories and raw material
producers. In addition to driving innovation in various areas along
our own supply chain and with our consumers, we also need the
support of policy makers and the engagement of the whole
industry to implement a new model for businesses that works with
nature rather than against it and ultimately supports social and
economic sustainability."

Raising Awareness Among National Governments, the Industry and
Science The release of the initial E P&L results in May
generated extensive media coverage and attained significant
interest among governments, industry peers and international
organizations.

Having been nominated as a co-opted member of the German
Council for Sustainable Development, which advises the German
government on sustainability issues, Jochen Zeitz presented the
results and benefits of the PUMA E P&L to 15 Council members and a
representative of the Federal Government last month. As a result,
the council will launch a project that aims at implementing
standards for PUMA´s environmental accounting statement and will
promote the E P&L approach as an innovative practice in public
debates.

The UK government featured PUMA´s groundbreaking analysis as a best
practices case study for sustainable business in the Department for
Environment, Food and Rural Affair (DEFRA) Natural Environment White
Paper in June 2011. White papers are documents produced by the UK
government setting out details of future policy on a particular
subject, often forming the basis for legislative reform.

Also, the Co-Chair of the Investment Commission and Treasurer
for the UN Environment Programme Financial Initiatives referred to
the PUMA E P&L when speaking at the 2011 UNEP Financial
Initiatives Global Roundtable in Washington last month. Further
references have been made by sustainability experts Pavan Sukhdev6
and John Elkington7, the Harvard Business Review8, the Stanford
Social Innovation Review9 and the World Business Council for
Sustainable Development to name but a few.

Stepping up internal Resources at PPR and PUMA In support of these
findings, PPR and PUMA have stepped up their internal
resources, hiring additional staff on a group level as well as
within the PUMA.Safe team in order to address the challenge of
reducing the environmental impact. On a corporate level, PPR is
adding an Energy Management Specialist to its sustainability
team, who will immediately begin to investigate
opportunities for reducing Greenhouse Gas emissions. PPR has
also hired a Conservation and Ecosystem Services Specialist who
will be investigating the development of broadly-accepted
definitions of sustainable cotton and rubber and internal
standards for their sourcing.

To better target and focus its efforts, the PUMA.Safe team, which
ensures that supplier factories adhere to PUMA´s social and
environmental standards, has created both a Humanity and an Ecology
team. Five additional environmental and social auditors will be
joining the existing 13 employees in the PUMA.Safe team, so
that environmental impacts at PUMA´s Tier 1 and Tier 2 suppliers
can be better addressed and solutions for their reduction more
rapidly developed. PUMA is also hiring a Chemical Engineer to look
at solutions to identify more sustainable materials as well as
supporting PUMA in phasing out harmful substances within the
supply chain.

Developing synergies and partnerships PUMA and PPR HOME have shared
the results of the E P&L with other industry players and
corporations to leverage adopting a new business model that takes
the costs of using natural resources and eco-system services within
corporate supply chains into account. Furthermore, PUMA has collected
information on the environmental performance of suppliers which can
be used to provide benchmarks for supplier performance targets and
the sharing of best practice. PPR HOME will also leverage the
lessons learned during PPR´s Group EP&L implementation stages in
order to provide case studies across the Group´s companies and
brands to assist in broader adoption among businesses.

Building Capacity to Penetrate the Supply Chain PUMA has already
stepped up its capacity building programme for its suppliers such
as the CONSERV project at apparel and footwear factories in
Vietnam. The project, which was launched in cooperation with the
German investment and development organization DEG and
international capacity building organization Assist Asia, will
support the factories of Tier 1, Tier 2 and Tier 3 suppliers to
reduce greenhouse gas emissions, secure availability of natural
resources and minimize the risks from waste and pollution through
the implementation of resource efficiency practices.

Innovating for the Development of Sustainable Products PUMA has also
looked into opportunities to address the impact of Tier 1 to Tier 4
suppliers through the innovative development of more sustainable
products and introduced its iconic style PUMA Suede to
sustainability, creating the PUMA Re- Suede made for the
environmentally conscious consumer. It has been developed using
the latest materials and processes through eco-friendly
product innovation. It is comprised of 100% recycled polyester
fibers, produced by a chemical recycling process that reduces both
the energy consumption and the CO2 emission by 80% compared to the
production of virgin materials. The recycled

polyester is scrap waste from manufacturing processes that is repurposed to
create the synthetic material. With the development of the Re-Suede PUMA has
come a little step closer to achieving its goal of manufacturing 50% of the
international collections using more sustainable materials by 2015.
|Further information is available in the press kit on www.about.puma.com
|
|The PPR Group E P&L Press Release is available on www.ppr.com.
|
|
|
|Media Contact:
|
|Kerstin Neuber - Corporate Communications - PUMA AG - +49 (0) 9132 81 2984 -
|
|kerstin.neuber@puma.com
|
|Mich Ahern - Public Relations Consultant - PPR HOME - +44 (0) 7908 507 672 -
|
|mich.ahern@gmail.com
|
|

PUMA is one of the world´s leading Sportlifestyle companies that designs and
develops footwear, apparel and accessories. It is committed to working in ways
that contribute to the world by supporting Creativity, SAFE Sustainability and

Peace, and by staying true to the principles of being Fair,
Honest, Positive and Creative in decisions made and actions taken.
PUMA starts in Sport and ends in Fashion. Its Sport Performance and
Lifestyle labels include categories such as Football, Running,
Motorsports, Golf and Sailing. Sport Fashion features
collaborations with renowned designer labels such as Alexander
McQueen, Mihara Yasuhiro and Sergio Rossi. The PUMA Group owns the
brands PUMA, Cobra Golf and Tretorn. The company, which was founded
in 1948, distributes its products in

more than 120 countries, employs more than 9,000 people worldwide and has
headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit http://www.puma.com

|PPR HOME |

The PPR Group unites its brands behind PPR HOME to work together
towards PPR HOME´s Vision of a better world that is more
sustainable - economically, socially and ecologically - than the
world we know and live in today. With PPR HOME, the Group commits
to lessen its impact on the environment, taking responsibility
and proactive steps to implement more sustainable business
practices. PPR HOME moves beyond the conventional CSR approach and
promotes a

new business paradigm whereby the attainment of sustainability is driving
creativity and innovation, and vice versa, to build businesses that deliver
financial, social and environmental returns for the long run.
| |
|PPR |

PPR nurtures a group of high-growth global brands distributed in more than 120
countries. PPR generated revenue of EUR14.6 billion in 2010 and had
approximately
60,000 employees as of December 31, 2010. The PPR share is listed on Euronext

Paris (FR 0000121485, PRTP.PA, PPFP). Explore the PPR brand
universe at www.ppr.com: Luxury Goods (Gucci, Bottega Veneta,
Yves Saint Laurent, Alexander McQueen, Balenciaga, Boucheron,
Girard-Perregaux, JeanRichard, Sergio Rossi and Stella McCartney),
Sport & Lifestyle (Puma, Volcom, Cobra, Electric and Tretorn),
Fnac and Redcats.

Pictures with Announcement:
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Further inquiry note:
Kerstin Neuber

Telefon: +49 (0)9132 81-2984

E-Mail: Kerstin.Neuber@puma.com

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Pictures with Announcement:
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http://resources.euroadhoc.com/us/HP9jicw1

company: PUMA SE
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phone: +49 (0)9132 81 0
FAX: +49 (0)9132 81-2246
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