Puma, one of the world’s leading sports gear companies, is truly a company to watch because of their success but also because of their dedication to sustainability initiated by their CEO and Chairman Jochen Zeitz. After joining Puma in 1990, Zeitz completely changed the look and style of the company. Although many thought this was crazy, it eventually caught on and helped Puma reach $2.3 billion in annual sales in 2006. What is even more impressive for us green-minded people is Puma’s sustainability initiatives spearheaded by Zeitz. He has helped Puma reduce its use of hazardous chemicals, redesigned its shoeboxes to reduce packaging waste and supported solar power development. Now, after decades of research and changes to increase transparency, Puma is releasing a report that monetizes their impact on the environment through their use of environmental services, such as clean water, crops, soil formation, wildlife habitat and storm protection. Although this was no easy task, it greatly helps Puma to determine which areas are the worst-offenders and thus how to improve its overall environmental impact. From this new Environmental Profit and Loss Statement, Puma has learned that it would have to pay $133 million a year for the impact caused by its water use and greenhouse gas emissions. The report also found that the most expensive areas in terms of environmental impact are: cotton farming, natural rubber production and cattle ranching.
The next goals of the statement are to report social impacts as well as more environmental ones and to eventually also reflect the positive outcomes of Puma’s business, such as raising the level of education and health in an area. Zeitz has now moved on to become the Chief Sustainability Officer for Puma’s parent company, PPR SA, as well as head of the sport & lifestyle group. I, personally, am looking forward to seeing how Puma will use this new knowledge to decrease their environmental impact in the coming years.
To help your own business evaluate the ecosystem services it uses, check out the Guide to Corporate Ecosystem Valuation by the World Business Council for Sustainable Development.
Photo courtesy of Greener Package