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1、PUMA Annual Report 2023 Sustainability 30 SUSTAINABILITY Foreword Anne-Laure Descours,CSO 31 Awards and Recognitions 34 PUMAs FOREVER.BETTER.Sustainability Strategy 35 Sustainability Organisation and Governance Structure 36 Most Material Aspects 42 Scope of the Report 48 Due Diligence and Risk Asses

2、sment 49 Human Rights 53 Fair Income 79 Health and Safety 89 Environment 94 Climate 104 Chemicals 133 Water and Air 142 Plastics and the Oceans 153 Circularity 156 Products 165 Biodiversity 177 Environmental Key Performance Data 184 Reporting in Accordance with the EU Taxonomy Regulation 188 Index f

3、or Combined Non-financial Report and GRI content 198 KPMG Assurance Statement 205 PUMA Annual Report 2023 Sustainability 31 FOREWORD ANNE-LAURE DESCOURS,CSO In 2023 we started preparing our sustainability vision for 2030 by asking our most important partners and internal decision-makers to give us f

4、eedback on the sustainability topics that are most relevant for PUMA.The results are included in the materiality assessment published in this report.In parallel,we accelerated the implementation of our FOREVER.BETTER.Sustainability Strategy,making progress towards achieving our 10FOR25 targets in Cl

5、imate Action,Circularity,and Human Rights.From a products and materials perspective,we produced eight out of ten products*according to our PUMA Sustainability Index,which means these products are made with materials that are classified as preferred fibres by Textile Exchange or originate from certif

6、ied sources.In 2023,99.7%of all leather was sourced from Leather Working Group-certified tanneries,99.2%of all cotton was sourced from Better Cotton licensed farms or recycled and 99.4%of all paper and cardboard packaging was FSC-certified or recycled paper and cardboard.In Circularity,we expanded t

7、ake-back programmes in three new countries.Meanwhile,almost 65%of the polyester used for our apparel and accessories products came from recycled materials.We also started to scale up the use of recycled cotton,which reached 8.6%in 2023.We published the results of our RE:SUEDE project,an experiment t

8、o turn a new version of our iconic Suede sneaker,into compost(under tailor-made industrial composting conditions)and expanded our RE:FIBRE programme to transform textile waste and other used materials into new textiles.During the Womens World Cup in Australia,the Swiss National Team played in RE:FIB

9、RE jerseys,and our club partners re-ANNE-LAURE DESCOURS CHIEF SOURCING OFFICER(CSO)*Excluding products produced by PUMA Group company stichd and PUMA United.For further details on the reporting scope,please refer to the Scope of the Report section.PUMA Annual Report 2023 Sustainability 32 launched t

10、he RE:FIBRE initiative by deploying new take-back bins in additional locations.Overall,46,000 RE:FIBRE garments were produced in 2023.To help fight climate change,we continued to source 100%renewable electricity for PUMAs own offices,stores,and warehouses,with either renewable electricity tariffs or

11、 renewable energy attribute certificates.We also invested over 2 million to electrify our PUMA car fleet and the first low carbon shipment tariffs with our logistics service provider Maersk were implemented for our most important sea freight routes between Asia and Europe.This has helped us to reduc

12、e our own carbon emissions by 85%(market-based,including the purchase of RECs)compared to our 2017 baseline,as well as our logistics emissions from sea freight by almost 50%compared to 2022.In our supply chain,recycled material was up to 22%of the total material used for our products.Our core suppli

13、ers continued to transition to renewable energy with large-scale rooftop solar PV installations,REC purchases,and to transition boiler fossil fuels to renewable fuels.As a result,we reduced our absolute Greenhouse Gas emissions(for Scope 3 category 1)by 30%compared to our 2017 baseline and our core

14、suppliers used 22%of renewable energy.In 2023,PUMA joined Zero 100,a cross-sector membership-based research and intelligence organisation,to accelerate progress on Digital Supply Chain Transformation and the path to zero carbon emissions.On the social side,more than 222,000 factory workers received

15、training on sexual harassment at work,achieving our target three years ahead of schedule.As a long-term signatory to the Bangladesh International Accord on Building and Fire Safety,we also joined Accord Pakistan and a pilot to establish an Employment Injury Scheme in Bangladesh.Collectively,our PUMA

16、 employees contributed 57,000 hours of community engagement work around the globe to support educational,women empowerment,environmental,and sports activities.Our efforts were recognised in several rankings and ratings such as the Corporate Human Rights Benchmark,the Platform Living Wage Financials

17、Benchmark,Know the Chain,the Carbon Disclosure Project and being a finalist of the German Sustainability Award.Despite this recognition,there are still many areas for improvement.We need to further strengthen our efforts in Human Rights,Climate Action and Circularity.Following our Conference of the

18、People in 2022,we created our Voices of a RE:GENERATION initiative.Empowering a cohort of four Young Voices to help PUMA identify key areas for improvement.Through various projects,the Voices are helping us to communicate in a way that resonates with the next generation,bringing new perspectives and

19、 challenging PUMA to think differently.The Voices have met several times with key players at PUMA to discuss the progress and challenges surrounding our FOREVER.BETTER.Sustainability Strategy and produced PUMA RE:GEN Reports;a podcast series created to engage and better communicate with the younger

20、generation on PUMAs FOREVER.BETTER.10FOR25 targets.The Voices have also produced RE:HACKS(a social content series sharing tips with consumers on how to extend the lifespan of clothing and kicks).The Voices participated in our materiality assessment,giving input into what will shape PUMAs 2030 Sustai

21、nability Strategy.There is only one Forever Lets Make it Better.PUMA Annual Report 2023 Sustainability 33 HIGHLIGHTS OF 2023 We continued to implement our FOREVER.BETTER.Sustainability Strategy working towards our 10FOR25 sustainability targets.We also started preparing for the Corporate Sustainabil

22、ity Reporting Directive(CSRD)and of our next target cycle for 2030 with a new double materiality analysis.Eight out of ten PUMA products globally were made with a significant part of recycled or certified materials,such as better cotton or recycled polyester.In Circularity,we re-launched product tak

23、e-back initiatives at selected stores of our major football club partners.At PUMA,we now operate take-back bins at our Headquarters Store in Germany as well as stores in the USA,China/Hong Kong,and Australia.We equipped the Swiss National Womens Football Team with jerseys made from our RE:FIBRE init

24、iative for the Womens World Cup in Australia and launched product take-back bins at our stores in Switzerland.In Climate Action,we agreed on a new more ambitious science-based greenhouse gas reduction target with the Science Based Targets initiative(SBTi)and published our first Climate Action Transi

25、tion Plan.We continued to power our own offices,stores,and warehouses with 100%green electricity(including purchase of RECs)and added 92 electric cars to our PUMA car fleet.We decreased the air-freight ratio for the transport of our products to under 0.5%and started using biofuels for the shipping o

26、f PUMA products from Asia to Europe.We decreased our absolute Scope 3 emissions from the category purchased goods and services by 30%from 2017 to 2023,our core suppliers used 22%of renewable energy and almost 62%of the polyester used in our products is recycled.In Human Rights,we made the payment of

27、 a fair wage a bonus relevant topic for PUMAs own staff and continued to track the payment of wages at our core suppliers.For our core supplier Tier 1 factories,the average payment is 12.7%above minimum wage.222,933 factory workers received training on sexual harassment and 83,089 were paid a living

28、 wage on average.Our PUMA employees donated 57,000 working hours to community engagement work and we continued to focus on diversity and inclusion,for example by increasing the percentage of women on our management board to 50%and by becoming a signatory of UN Women Empowerment Principles(UNWEPs).Fi

29、nally,we appointed a Human Rights Officer and worked on a Human Rights Handbook for our employees to be published in 2024.In Biodiversity,we continued to partner with the Fashion Pact and Textile Exchange and supported the publication of a biodiversity landscape report for our industry.To ensure tha

30、t the leather used for PUMA products does not contribute to deforestation,we joined the call to action launched by the Leather Working Group and Textile Exchange to source all bovine leather from deforestation-free supply chains by 2030 or earlier.Since 2022,almost all tanneries used for PUMA leathe

31、r products have been certified by the Leather Working Group.For paper and cardboard,99.4%are either FSC-certified and/or recycled,to avoid any link to deforestation.PUMA Annual Report 2023 Sustainability 34 AWARDS AND RECOGNITIONS Our sustainability efforts continued to be recognised in several exte

32、rnal rankings and recognitions.In 2023,PUMA maintained its triple-A rating from MSCI,achieved a“good”rating from the critical consumer labeling organisation“Good on You”,and achieved the highest score in the Platform Financials for Living Wages benchmark report and Corporate Human Rights Benchmark f

33、or our industry,and maintained an A rating from CDP.PUMA once again topped the FTSE4Good sector ranking.We received a prime rating from ISS and were included in the Corporate Knights Global 100 Most Sustainable Companies list for the third year in a row,leading the textiles and clothing peer group.P

34、UMA also had the highest score among all sports brands in the S&P Corporate Sustainability Assessment.At the same time,we continued to receive critical feedback in reports issued by Stand Earth on the use of biomass as a replacement for coal in our supply chain,the Changing Markets Foundation on the

35、 dependence on oil as a raw material for synthetic fibres and components,Labor Behind the Label on working conditions in Pakistan,and Clean Clothes Campaign and Action Aid on the wage gap during the COVID-19 pandemic in Cambodia.We consider these critical remarks as we develop our sustainability sta

36、ndards,process and strategy.PUMA Annual Report 2023 Sustainability 35 PUMAS FOREVER.BETTER.SUSTAINABILITY STRATEGY Sustainability remains an integral part of the strategic priorities for PUMA under the leadership of our CEO Arne Freundt and our CSO Anne-Laure Descours.Our FOREVER.BETTER.Sustainabili

37、ty Strategy is based on our 10FOR25 targets,which were introduced in 2019 following an extensive materiality analysis and stakeholder dialogue.In 2023,we updated our materiality analysis in preparation for our new target cycle until 2030.The results confirm that the areas of Human Rights,Circularity

38、,and Climate Action(including Biodiversity)were ranked as a high priority.Until the end of our 10FOR25 targets period,we will still report on the 10 target areas to improve our sustainability performance:Human Rights,Climate Action,Circularity,Products,Water and Air,Biodiversity,Plastics and the Oce

39、ans,Chemicals,Health&Safety as well as Fair Income.For each of these target areas,which reference the related United Nations Sustainable Development Goals(SDG),we have defined a minimum of three concrete targets,as well as key performance indicators to follow the progress we have made.With our FOREV

40、ER.BETTER.Sustainability Strategy,we continue our path to fully integrate sustainability into all our core business functions.Sustainability targets are part of the bonus arrangements for every member of our global leadership team,from the CEO to Team Heads.PUMAs Code of Conduct and our vendor compl

41、iance programme,which were introduced more than 20 years ago,are still the basis for any contractual relationship with manufacturers globally and remain the foundation of our responsible sourcing strategy and programme.We revised the Code in 2023 and will publish the new version in 2024.PUMA Annual

42、Report 2023 Sustainability 36 SUSTAINABILITY ORGANISATION AND GOVERNANCE STRUCTURE PUMAs sustainability organisation is structured and governed in multiple ways:At the Supervisory Board level,with a Sustainability Committee.In 2023,we had several meetings to discuss the PUMA action plan related to t

43、he Corporate Sustainability Reporting Directive(including our plan to conduct a double materiality assessment in 2023).We had a deep dive discussion into Human Rights including PUMA work on fair income,responsible purchasing practices,the implementation plan of the German Supply Act and critical fee

44、dback received through NGO reports regarding factories working conditions.We also had a deep dive discussion into circularity,including PUMA programmes and projects update,and into Climate actions including our 2030 decarbonisation pathway plan.At the Management Board level,the responsibility for su

45、stainability is assigned to the Chief Sourcing Officer(CSO).-There were several Management Board meetings in 2023 with dedicated sustainability updates and decision on topics like the 2022 sustainability target status and 2023 action plan,PUMAs action plan related to the German Supply Chain Act and

46、Corporate Sustainability Reporting Directive(including our plan to conduct a double materiality assessment in 2023),new minimum wage negotiation development in Bangladesh and PUMAs position,circularity programmes and projects status and our 2030 decarbonisation pathway plan.-PUMAs CEO,the Chair of t

47、he Supervisory Board and the Works Council all participated in our materiality assessment,which will lay the foundations of our new Sustainability Strategy for 2030.-Our CSO has a monthly meeting with the Sustainability Leads for corporate and supply chain sustainability.Topics include Human Rights,

48、Health and Safety,and chemical programmes,as well as climate and water projects in the supply chain.At the Functional Heads level,with an Executive Sustainability Committee.-The Executive Sustainability Committee comprises of all Functional Heads of the company,such as the People&Organisation,Sourci

49、ng,Finance,IT,Marketing,Risk Management,Investor Relations,Retail,Logistics and Legal Affairs.The committee met twice in 2023 to provide an update on sustainability programmes and approved the 2023 Sustainability Bonus Targets.At the Product level,with a Cross-Functional Business working group and m

50、onthly updates on PUMAs more sustainable product strategy and execution.At the Subsidiary level with nominated Sustainability Leads for each PUMA subsidiary(quarterly updates on PUMA Sustainability Strategy and performance,best practice sharing from individual subsidiaries).At the Sustainability Exp

51、erts level,with a corporate sustainability department and a supply chain sustainability department.At the Legal and Compliance level,with a Human Rights Officer.In December 2023,PUMA appointed PUMA General Counsel Corporate Governance&Compliance as Human Rights Officer.The Human Rights Officer shall

52、 monitor PUMAs risk management system,risk analysis relating to Human Rights and compliance with Human Rights due diligence regulations.PUMA has a Health and Safety Committee that operates in the headquarters and conducts quarterly meeting.This committee regularly reviews existing reports on known h

53、ealth and safety risks,conducts frequent health and safety inspections and exchanges documentation on health issues and risks.The Global Director People&Organisation,who is part of the Health and Safety Committee,informs the Management Board of PUMA SE about relevant health and safety matters at lea

54、st quarterly.PUMA Annual Report 2023 Sustainability 37 G.01 SUSTAINABILITY ORGANISATION CHART SUSTAINABILITY PERFORMANCE-RELATED REMUNERATION At PUMA,we link performance criteria in the remuneration of all leaders globally with clear and defined sustainability targets.The variable annual performance

55、 bonus is based on the achievement of PUMAs FOREVER.BETTER.Sustainability Strategy targets.All PUMA leaders globally,from the CEO to the Team Head level,have clearly defined sustainability targets as part of their annual performance bonus.These targets are aligned with PUMAs FOREVER.BETTER.Sustainab

56、ility Strategy and focus on our 10FOR25 sustainability target areas:Human Rights,Climate Action,Circularity,and Health and Safety.The targets cover 10%of the overall bonus for members of the Management Board and 5%for other leaders globally.G.02 REMUNERATION CRITERIA BY WEIGHT 90%10%For management b

57、oard95%5%For other leaders globallyESG relatedindicatorsFinancial indicatorsPUMA Annual Report 2023 Sustainability 38 T.01 2023 BONUS TARGETS Area Percentage of Bonus Corporate&Subsidiaries Target Sourcing&Supply Chain Target Human Rights 1.25%(2.5%)All PUMA employees are paid a living wage;2 hours

58、community engagement per FTE No zero tolerance issues prevailing at year end 180,000 workers training on women empowerment Climate Action 1.25%(2.5%)30%of all cars in PUMAs car fleet hit the EU Taxonomy definition of a low-emission car (50%recycled or certified material 90%of our Footwear contains a

59、t least one component made of recycled or certified material Increase use of recycled polyester(Apparel and Accessories)to 75%by 2025 Relates to United Nations Sustainable Development Goal 12 KPIs:Percentage of Apparel and Accessories with 50%recycled or certified material Percentage of Footwear wit

60、h at least one recycled or certified component Percentage of recycled polyester used in Apparel and Accessories The PUMA Environmental Profit and Loss Account(EP&L)attributes more than 50%of our environmental impact to material and raw material production.Against this background,we have decided to p

61、rioritize the large-scale use of certified or recycled raw materials.In our 10FOR25 strategy,we have set 100%targets for the raw materials of cotton,polyester,leather,and cardboard.In addition to measuring the use of recycled or certified materials,we also determine the percentage of all products ma

62、de of such materials.As defined in our PUMA Sustainability Index,or S-Index,S-Index-approved apparel or accessories products contain at least 50%certified or recycled materials by weight.For footwear,we currently measure S-Index conformance by including one or more main components*made from certifie

63、d or recycled materials.In 2021 we rolled out an e-learning toolkit on our PUMA S-Index for the PUMA family.The training allows designers,developers,and product managers to understand which materials qualify as more sustainable,how the PUMA S-Index is calculated,and which certifications need to be i

64、n place to externally communicate on a product level.In 2023,85%of our product by volume met our S-Index definition.We are on track to meet our goals of 90%for 2025.*Main component in the upper includes the visible upper and its components,linings,sockliner,and strobel as the only non-visible compon

65、ent.They can be made of textile,leather,synthetic(PU)or TPU.It excludes trims such as eyelets,laces,counters,decorations,etc.Main components in the bottom includes outsoles,midsoles,and insoles.They can be made of Rubber,PU,TPU,EVA.It excludes trims and decorations.PUMA Annual Report 2023 Sustainabi

66、lity 166 T.44 CERTIFIED OR RECYCLED PRODUCTS Product Category Styles 2023 Volume 2023 Target 2025 Apparel with at least 50%certified or recycled material 77%87%90%Accessories with at least 50%certified or recycled material 20%40%*90%Footwear with at least one certified or recycled component 89%93%90

67、%Total 75%85%90%*Excluding products from stichd;for further details on the reporting scope please refer to the Scope of the Report section.In 2023 we continued to develop and design our collections and individual styles using recycled materials.Highlights include the use of our RE:FIBRE technology i

68、n our Teamsport jerseys.The jerseys made with RE:FIBRE are made from at least 95%of recycled textile waste and other used materials made of polyester.We also continued our Downtown collection from Sportstyle and accessories.The different styles in Downtown are made using 20-30%recycled cotton,while

69、the accessories are made from at least 20%recycled content.Another highlight includes the scaling of our Caven shoe,which is made with at least 20%recycled materials in the upper and at least 10%recycled materials in the bottom.Our Downtown collection exceeded 1 million pieces in 2023 and we produce

70、d 3 million Caven shoes for the Spring Summer and Autumn Winter collections in 2023 combined.PUMA Caven contains at least 20%recycled content in the upper and 10%recycled content in bottom of the shoe.PUMA Annual Report 2023 Sustainability 167 PRODUCT LIFE CYCLE ASSESSMENT We continued the Life Cycl

71、e Assessment(LCA)studies of our product portfolios in 2023.The outcomes of an LCA act as a quantifiable measure of our efforts towards embedding sustainability in our products by exploring ways to make our product value chains safer,cleaner and more sustainable.It also encourages innovation in our p

72、roducts and processes so that we can meet increasing social and business expectations regarding sustainability and transparency.Sphera,a leading consulting organisation in the field of LCA,conducted LCA studies to consider all of the elements of the life cycle,from the overall manufacturing includin

73、g supply of material and energy carriers through to the end of life,when analysing the environmental performance of the products.The LCAs were performed as per ISO 14040 and ISO 14044 requirements.A third-party critical review panel was commissioned to peer review the work and ensure compliance with

74、 the mentioned standards.LCA OF TWO PRODUCTS We completed a screening LCA study for two of our top products,the PUMA POPCAT 20 sandals,and the PUMA Smash v2L shoes,to map the environmental footprint of these products across their entire value chains(cradle to grave),excluding the consumer use phase.

75、This helped us to understand the hotspots in the value chain(the maximum impacts in terms of climate,energy and water),and to identify sustainable options in various phases to improve the products environmental footprint.The results of the analysis can be summarised as follows:G.30 GLOBAL WARMING PO

76、TENTIAL 49.07%69.61%40.37%21.38%0.29%0.23%9.94%8.78%Sandals POPCAT20Shoes SMASH V2LManufacturingRaw MaterialEnd of LifeUse PhaseShoe PUMA SMASH V2 L,gross weight 0.955 kg/pair Sandal PUMA POPCAT 20,gross weight 0.381 kg/pair PUMA Annual Report 2023 Sustainability 168 For the POPCAT20 sandals,the glo

77、bal warming potential(GWP)in kg CO2e was mainly influenced by raw materials which include polyester fabric,chemicals etc.(49.07%),manufacturing energy(40.37%)and End of Life(9.94%).Ethylene Vinyl Acetate(EVA)and PU Synthetic are the major contributing materials.For the SMASHv2L shoes,the global warm

78、ing potential(GWP in kg CO2e)was mainly influenced by materials which include body material,parts and components(69.61%),manufacturing energy(21.38%),and end-of-life(8.78%).Polyester fabric and rubber are the major contributing materials.Footwear usually does not require extensive cleaning during it

79、s lifetime,and hence the impact of the consumer use phase is negligible.Therefore,the GHG emissions of the use phase from both of the footwear is not considered.However,the end-of-life phase includes reuse,recycling,incineration,and landfilling based on European scenarios,which contributes to GWP im

80、pacts of 9.94%for the POPCAT20 sandals and 8.78%for the SMASHv2L shoes.G.31 PRODUCT ENVIRONMENTAL FOOTPRINT1-2 1 Primary energy is the energy that is harvested directly from natural resources:coal,oil,natural gas and uranium.2 Blue water is water that has been sourced from surface or groundwater res

81、ources and is either evaporated or incorporated into a product.For the POPCAT20 sandals,the total global warming potential is 1.61 kg CO2e.The total primary energy demand is 32.36 MJ with major contributions from ethylene vinyl acetate(EVA)(60.60%)and PU Synthetic(11.48%).The total blue water consum

82、ption is 31.02 kg with major contributions from the raw material PU Synthetic blend(51.85%)which contains 52%recycled polyester and 48%polyurethane.The remaining contribution comes from other materials,chemicals,electricity and fuel consumption.For the SMASHv2L shoes,the total global warming potenti

83、al is 4.61 kg CO2e.The total primary energy demand is 90.38 MJ with major contributions from the polyester fabric(30.04%)and rubber(22.04%).The total blue water consumption is 41.33 kg with major contributions from PU-coated leather(33.41%).POPCAT 20 sandals have a significantly smaller(65%)carbon f

84、ootprint than SMASH v2L shoes.One reason for this is the lower net weight of POPCAT 20,which is 60%lower.Looking at the carbon footprint of materials,in the case of POPCAT 20,64.5%of climate impact comes from the Ethylene Vinyl Acetate(EVA)while for Smash V2L,the majority of the impact comes from po

85、lyester and rubber,which accounts for 65.4%of the carbon footprint of the raw material of the product.This indicates that low-carbon material such as EVA has also contributed to the lower carbon footprint of POPCAT 20.Looking at energy consumption during 1.614.61SandalsPOPCAT20ShoesSMASHv2LClimate C

86、hangekg CO2e/product32.3690.38SandalsPOPCAT20ShoesSMASHv2L31.0241.33SandalsPOPCAT20ShoesSMASHv2LPrimary Energy Demand(Net)MJ/productBlue Water Consumptionkg/productPUMA Annual Report 2023 Sustainability 169 production,POPCAT 20 consumed 52%less electricity than SMASH v2L.This can be attributed to th

87、e lower net weight and the simplicity of the POPCAT 20 product design.Though the SMASH v2L has a larger carbon footprint than the POPCAT 20,it is much smaller(4.61 kg CO2e)when compared to previously conducted LCAs of footwear products in 2021 i.e.the Future Rider Play on (9.49 kg CO2e)and Velocity

88、Nitro(7.6 kg CO2e).Both the Future Rider Play on and Velocity Nitro have a lower net weight of 0.78 kg and 0.72 kg as compared to the SMASH v2L which has a net weight of 0.955 kg/pair.The SMASH v2L is made of recycled materials such as recycled polyester,recycled PU,and recycled rubber along with re

89、cycled packaging materials and the quantity of leather used is much lower,which explains the lower carbon footprint when compared to the Rider Play on and Velocity Nitro.The key takeaways from the LCA study are,to make future footwear products lighter,increase the usage of low-impact materials such

90、as recycled polyester or recycled PU and reduce the use of high-impact materials such as virgin PU and virgin polyester.The supply chain for footwear products is complex and involves multiple stages such as raw material extraction,processing,finishing,assembly,distribution and end of life.The LCA st

91、udy is used to understand the value chain environmental impacts of our products.PUMA intends to use the outcomes of the study to raise internal awareness and improve the products environmental footprint by increasing the use of more sustainable materials(recycled or biosynthetic),improving resource

92、efficiency,optimizing energy use,promoting renewable energy in the value chain,and enhancing the circularity of our products.COMPARATIVE LCA VIRGIN POLYESTER VS.PET RECYCLED POLYESTER VS.RE:FIBRE POLYESTER PRODUCTS In 2023,PUMA engaged Sphera,Inc.to conduct a comparative Life Cycle Assessment(LCA)of

93、 three types of sports jerseys made from virgin polyester,PET recycled polyester and RE:FIBRE,in our Turkey supply chain.The RE:FIBRE process uses mainly polyester material from factory offcuts,faulty goods and used clothes.PET recycled polyester comes from PET plastic bottles.The LCAs were performe

94、d using the“cradle to grave”approach.The objective was to quantify the environmental impacts associated with the production of these three types of jerseys using the LCA approach.The products studied were:The scope of this study includes raw material sourcing and extraction,transportation of raw mat

95、erials to the manufacturing location,manufacturing of the jersey products,product distribution,product use phase and end of life(EoL)of product and packaging.PET recycled polyester jersey Net weight 0.964 kg(88%Mechanically Recycled Polyester and 12%Virgin Polyester)RE:FIBRE polyester jersey Net wei

96、ght 0.904 kg(57%Chemically Recycled Polyester,34%Mechanically Recycled Polyester,and 9%Virgin Polyester)Virgin polyester jersey Net weight 1.316 kg(100%Virgin Polyester)PUMA Annual Report 2023 Sustainability 170 The LCA study indicates that per kg,the PET recycled polyester jersey has the smallest c

97、arbon footprint(13.19%lower as compared to virgin polyester jersey)among the three products compared in the study.Whereas,per kg,the RE:FIBRE polyester jersey has a 7.31%lower Global Warming Potential(GWP)impact when compared to the virgin polyester jersey.The RE:FIBRE polyester jersey has 57%chemic

98、ally recycled fibre which has a higher GWP impact as compared to mechanically recycled fibre but a lower one than virgin recycled fibre.The total primary energy demand also exhibits a similar trend,due to same factor as the carbon footprint.The PET recycled polyester jersey and RE:FIBRE Polyester Je

99、rsey are 16.15%and 12.13%lower respectively per kg than the virgin polyester jersey.The LCA study also indicates that,the water consumption per kg of PET recycled polyester jersey and RE:FIBRE polyester jersey is 1.10%and 2.82%higher than per kg value of the virgin polyester jersey.Although textile-

100、to-textile technology currently has a larger environmental footprint than mechanical recycling,through the RE:FIBRE programme,PUMA is keen to address the challenge of textile waste via a long-term solution for recycling.The technology also looks to diversify the fashion industrys main source of recy

101、cled polyester in garments to make it less reliant on clear plastic bottles.We also believe that this technology has room to become more energy efficient in future.Managing waste has become a necessity,which is why PUMA is ramping up its investment into resource-efficient manufacturing processes in

102、a move to reduce textile waste.Textile waste build-up in landfills is an environmental risk.Rethinking the way we produce and moving towards a more circular business model is one of the main priorities of our Sustainability Strategy.To help make the technical process of RE:FIBRE more digestible for

103、the everyday consumer who wants to know more,PUMA has created a RE:FIBRE process explainer video,which can be accessed here.The four-step process of RE:FIBRE:Collect and Sort:collecting and sorting textile waste and other previously wasteful materials.Shred and Mix:shredding and mixing the collected

104、 materials Dissolve,Filter and Polymerize:Dissolving the shredded polyester and removing dyes through a chemical recycling process.Melt,Spin,Knit and Sew:The melting makes the newly produced polymers ready to be spun and sewn into shape to create good as new RE:FIBRE fabric which can be recycled aga

105、in and again.PUMA Annual Report 2023 Sustainability 171 G.32 ENVIRONMENTAL FOOTPRINT OF POLYESTER JERSEYS1-2 1 Primary energy is the energy that is harvested directly from natural resources:coal,oil,natural gas and uranium.2 Blue water is water that has been sourced from surface or groundwater resou

106、rces and is either evaporated or incorporated into a product.COMPARATIVE LCA OF 3 TYPES OF COTTON FABRIC PUMA engaged Sphera to conduct a comparative Life Cycle Assessment(LCA)of one kilogramm of 100%virgin piece dyed cotton fabric,75/25 virgin/undyed recycled piece dyed cotton fabric and 75/25 virg

107、in/coloured recycled piece dyed cotton fabric.Piece dyed fabric is fabric made of grey yarns which are dyed,and is different to yarn dyed fabric:a fabric that is knitted using dyed yarn.LCAs are performed using the“cradle to gate”approach.Since this is the“cradle to gate”approach,consumer use phase

108、and fabric end-of-life impacts for the cotton fibre products were not considered in this LCA study.The main objective of the study is to quantify the environmental impacts associated with the production of these fabrics across various life cycle stages of the manufacturing process,including the supp

109、ly of raw materials and energy carriers.The primary data considered for the study was collected from three PUMA suppliers stretched across two regions,Bangladesh(two factories)and Turkey(one factory).The data collected includes data for all the production processes such as collection and pre-process

110、ing,yarn spinning,knitting and inspection,pre-treatment,dyeing,compacting and drying.The LCA study indicates that for one kg of 75/25 virgin/undyed recycled piece dyed cotton fabric,the carbon footprint is 5.83%smaller compared to the 100%virgin piece dyed cotton fabric.This change was mainly influe

111、nced by the inclusion of 25%undyed recycled cotton material.For 1 kg of 75/25 virgin/coloured recycled piece dyed cotton fabric,the carbon footprint was smaller by 13%when compared to the 100%virgin piece dyed cotton fabric.This change was mainly influenced by the inclusion of 25%coloured recycled p

112、iece dyed cotton fabric.When comparing these three fabrics,the environmental impacts of 75/25 virgin/coloured recycled piece dyed cotton fabric were found to be the lowest.This is due to the usage of 25%recycled yarn which is recovered from a coloured fabric and hence requires fewer chemicals and le

113、ss energy during the dyeing process.22.4619.4920.81Climate Changekg CO2e/kg of product606.31508.39532.79964.28974.88991.49Primary Energy Demand MJ/kg of productBlue Water Consumptionkg/kg of productGWPPEDBWCPET Recycled Jersey Virgin Polyster Jersey RE:FIBRE Polyester Jersey PUMA Annual Report 2023

114、Sustainability 172 G.33 ENVIRONMENTAL FOOTPRINT OF COTTON FABRICS Additionally,it was found that the most significant carbon footprint impact is related to the conventional dyeing of fabric followed by the impacts of cotton cultivation and yarn spinning.Primary energy demand is largely driven by the

115、 cultivation of cotton,followed by conventional dyeing of fabric.Water consumption is largely driven by cotton cultivation followed by conventional dyeing,compacting and drying processes.In the study,we also evaluated the environmental impacts of different types of dyeing technologies such as conven

116、tional and Pad-Steam dyeing processes for the three types of fabrics.The Pad-Steam process is a textile finishing technique used to apply chemicals or dyes to fabric.It is a combination of two steps:padding and steaming.This process is employed to achieve uniform coloration,improved fabric propertie

117、s,and enhanced performance characteristics.This study was conducted at a factory located in Turkey that uses both technologies.Conventional dyeing for knitted products is typically a batch process in which the fabric is loaded along with water,chemical and dyestuffs and processed for a fixed number

118、of hours based on the type of fabric.Whereas,Pad-Steam dyeing is a continuous dyeing process,in which the fabric is dyed by immersing the fabric in the dye solution for a few seconds,immediately pressed through a roller and then steamed.Pad-Steam dyeing is more resource-efficient as compared to conv

119、entional dyeing.This was further corroborated by our LCA study.Pad-Steam dyeing was found to have a smaller environmental footprint than conventional dyeing.It was observed that the Pad-Steam dyeing process has 81.9%less energy and 80.5%less water consumption as compared to the conventional dyeing p

120、rocess.It was found that Pad-Steam dyeing for 100%virgin piece dyed cotton fabric has a 34.8%smaller carbon footprint as compared to conventional dyeing.The corresponding figure for 75/25 virgin/undyed recycled piece dyed cotton fabric was 36.9%and 25.02%for 75/25 virgin/coloured recycled piece dyed

121、 cotton fabric.Similar trends were also observed for primary energy demand and water consumption.The LCA study clearly indicates that the inclusion of recycled cotton fabrics has a smaller environmental footprint and hence is to be promoted for future product development.However,there are currently

122、technological limitations surrounding increasing recycled cotton to more than 25%in a cotton fabric mix.This calls for a focus on future innovation in this area.Furthermore,our suppliers could adopt better dyeing technologies such as the Pad-Steam dyeing process which has a smaller environmental foo

123、tprint.8.678.167.53Climate Changekg CO2e/kg of Fabric190.81170.42160.201,216.26942.48912.84Primary Energy Demand MJ/kg of FabricBlue Water Consumptionkg/kg of FabricGWPPEDBWC75/25 Virgin/Undyed RecycledPiece Dyed Cotton FabricVirgin Piece DyedCotton Fabric 75/25 Virgin/Coloured RecycledPiece Dyed Co

124、tton FabricPUMA Annual Report 2023 Sustainability 173 MATERIAL ORIGIN Mapping and assessing risk and impact practices in the lower tiers of the supply chain helps us to identify opportunities for improvement.COTTON In 2023,we sourced approximately 34,000 tons of cotton.To reach our 100%targets for c

125、ertified or recycled cotton,we require our suppliers to only source cotton from farms that are licensed or certified as having good farming and human rights standards,or recycled cotton.96%of the cotton used in PUMA products comes from the USA,Brazil,Australia,India,Bangladesh,Vietnam,Indonesia and

126、Turkey.LEATHER In 2023,we sourced approximately 3,500 tons of bovine leather.We are working on improving the traceability of the leather we use by recording the traceability score of our leather manufacturers certified by the Leather Working Group.The leather used in PUMA footwear mainly comes from

127、the USA(61%),Argentina(27%),Australia(6%)and Brazil(5%).We also monitor our LWG(Leather Working Group)medal-rated tanneries traceability performance.Most suede tanneries work with agents and intermediaries besides direct tanneries to guarantee a stable sourcing supply.Suede is a byproduct of the ful

128、l-grain leather business.This creates a challenge to full traceability.This explains why our suede leather LWG tanneries have a worse traceability performance than full-grain LWG tanneries.We aim to increase all of our LWG medal-rated tanneries traceability performance over time.MATERIAL CONSUMPTION

129、 DATA G.34 CERTIFIED OR RECYCLED MATERIALS DEVELOPMENT1-2 1 Cotton and polyester including apparel and accessories material(including trims)2 Proliferation for 2023 based on actual data in January-September 2023 and previous data October-December 2022 As in previous years,a significant percentage of

130、 our materials can be attributed to cotton either from the Better Cotton Initiative,recycled or organic cotton,to polyester that is either bluesign or OEKO-TEX-certified,recycled or bio-based polyester,and to leather sourced from Leather Working Group(LWG)-certified tanneries or recycled leather.In

131、addition,we only use down feathers certified by the Responsible Down Standard and 84%of our man-made cellulosic(MMCF)is made by green shirt-rated MMCF suppliers with a proven track record on sustainability based on the Hot Button report from the NGO Canopy.0102030405060708090100201520162017201820192

132、020202120222023YearCottonPolyesterCardboardLeatherPUMA Annual Report 2023 Sustainability 174 Therefore,more than 87%of our apparel,40%of our accessories and 93%of our footwear products are already classified in line with the definition in our PUMA Sustainability Index.Coverage and calculations are m

133、ore complex for footwear because all of our shoes are made from several components.The main materials we use are polyester,polyurethane,rubber,leather and nylon.In line with our earlier targets,we have achieved 99.7%coverage of leather sourced from LWG-certified tanneries.In 2023,99.2%of the cotton

134、used came from certified or recycled sources,as did 85%of our polyester.We hardly used wool in 2023(6,566 kg).Nevertheless,we see an increased number of factories certified in line with the Responsible Wool Standard(RWS).We organised a RWS training for our in-scope suppliers in June 2023,and the pos

135、itive results were shown by the six RWS-certified factories in our supply chain.We aim to reach 100%certified wool in 2025.T.45 DEVELOPMENT OF CERTIFIED OR RECYCLED MATERIAL USAGE*Cotton Apparel Accessories Footwear Total Better Cotton 90.6%23.2%8.0%90.3%Recycled 8.6%16.7%1.6%8.6%Organic 0.3%0.3%0.3

136、%Conventional 0.6%59.7%90.5%0.9%Polyester Apparel Accessories Footwear Total Recycled 68.4%29.3%56.5%61.8%Oekotex/bluesign 30.3%54.5%8.1%23.3%Sorona 0.1%0.2%0.1%Conventional 1.2%16.2%35.2%14.8%Manmade cellulosics Apparel Accessories Footwear Total Green Shirt-rated fiber producers*82.4%72.7%Ecovero

137、12.7%0.7%11.3%Conventional 4.9%100.0%99.3%16.0%Polyamide(nylon)Apparel Accessories Footwear Total Recycled 26.4%60.2%2.0%19.3%Oekotex/bluesign 70.8%38.2%13.9%46.9%Conventional 2.8%1.6%84.2%33.8%PUMA Annual Report 2023 Sustainability 175 Leather Apparel Accessories Footwear Total LWG medal-rated tann

138、ery 99.96%99.7%Recycled 0.04%0.04%Conventional 100.0%0.22%Rubber Apparel Accessories Footwear Total Synthetic 34.7%52.6%93.9%93.0%Natural 65.3%32.5%1.2%1.9%Recycled 15.0%4.9%5.1%PU Apparel Accessories Footwear Total Recycled 2.4%1.5%2.4%2.4%Oekotex/bluesign 93.4%0.8%Water-based 0.02%1.1%1.0%Bio-base

139、d 0.4%0.4%Conventional 4.3%98.48%96.1%95.4%Down Apparel Accessories Footwear Total RDS certified 100%100%*Figures include trims and exclude licensee production as well as production from stichd.For further details on the reporting scope,please refer to the Scope of the Report section.*Green Shirt-ra

140、ted fiber producers,as set by the annual Canopy Hot Button report,encourage existing fiber suppliers to commit to CanopyStyle and a Canopy Audit.T.46 CERTIFIED OR RECYCLED MATERIALS BY PRODUCT DIVISION*2023 2025 target Apparel Certified or recycled cotton 99.4%100%Certified or recycled polyester 98.

141、8%100%Certified or recycled MMCF 95.1%100%Certified or recycled PU 95.7%NA Accessories Certified or recycled cotton 40.3%100%Certified or recycled polyester 83.8%100%Certified or recycled MMCF 0.0%100%Certified or recycled leather 0.0%100%Certified or recycled PU 1.5%NA PUMA Annual Report 2023 Susta

142、inability 176 Footwear Certified or recycled cotton 9.5%100%Certified or recycled polyester 64.8%100%Certified or recycled MMCF 0.7%100%Certified or recycled leather 100%100%Certified or recycled PU 3.9%NA L&P paper/cardboard products*Recycled and/or FSC-certified 99.4%100%*Figures include trims and

143、 exclude licensee production as well as production from stichd.For further details on the reporting scope,please refer to the Scope of the Report section.*Including outer cardboard boxes,which were excluded in previous years.In 2023,the total number of GRS/RCS certified factories has increased to 15

144、9 from 145 in 2022.This indicates a higher uptake of recycled material due to the launch of more sustainable products in our product mix.In 2023,we saw an increased number of factories certified by the Responsible Wool Standard.T.47 NUMBER OF FACTORIES WITH CERTIFICATION1 Number of factories certifi

145、ed GRS/RCS GOTS OCS RDS RWS LWG Apparel&Accessories Tier 1 and Tier 2 128 30 23 6 6 NA Footwear Tier 1 and Tier 2 31 0 1 NA 1 NA 32 Gold Leather Tanneries 4 Silver 1 GRS:Global Recycling Standard,RCS:Recycled Claim Standard,OCS:Organic Content Standard;GOTS:Global Organic Content Standard;RDS:Respon

146、sible Down Standard,RWS:Responsible Wool Standard,LWG:Leather Working Group.PUMA Annual Report 2023 Sustainability 177 BIODIVERSITY TARGET DESCRIPTION:Support the industry in setting a science-based target for biodiversity 100%cotton,leather and down procured from certified sources(shared target)Zer

147、o use of exotic skins and hides Relates to United Nations Sustainable Development Goals 14 and 15 The worlds biodiversity experts agreed to conserve 30%of the worlds land and oceans by 2030.Biodiversity is also inextricably linked to climate change.Consequently,we have dedicated one of our 10FOR25 s

148、ustainability target areas to biodiversity.Most of PUMAs biodiversity impact is based in the supply chain,particularly to the usage of agricultural raw materials.However,we also include biodiversity checks in our annual environmental data collection for our own offices,stores and warehouses around t

149、he globe.BIODIVERSITY POLICY As part of the Fashion Pact,we are committed to supporting the development of science-based targets related to biodiversity.In 2021 we published the PUMA biodiversity policy and animal welfare policy-signed off by our Board of Management-to create a framework for our app

150、roach to biodiversity and animal welfare.These policies are available for download on our website.This includes our commitments:as a supporting partner of the CanopyStyle initiative,to only source our viscose from Green Shirt-rated suppliers in order to protect endangered forests and species.to sour

151、ce the leather used in PUMA products solely from manufacturers who implement industry best practice standards of environmental management and traceability,such as the leather working group.to source all our paper and paper-based packaging from recycled sources and/or Forest Stewardship Council-certi

152、fied sources.PUMA acted as a partner of Canopys Pack4Good initiative to collectively reduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next-generation solutions.At PUMA we care for the welfare of animals.We do not use animal products which originate from animals t

153、hat have been treated inhumanely.Therefore,we aim to implement high welfare and traceability standards and have published an Animal Welfare Policy.PUMA consults animal protection organisations on a regular basis to review our policies and actions.As a sign of our commitment to animal welfare,we join

154、ed the Fur Free Retailer programme and phased out the use of kangaroo leather in 2023.PUMA Annual Report 2023 Sustainability 178 BIODIVERSITY IN OUR OWN OPERATION We checked via our annual environmental reporting campaign and confirmed that none of our PUMA sites are located within a protected area.

155、We have identified one site in South Africa,as being located next to a protected area,which holds a rare species of the plant,Renosterveld Finbos.This site is an office location,and is fenced off from the protected area,so any negative impact on these plants can be ruled out.There are green roofs wh

156、ich offer additional habitats for insects as well as wildflower meadows and beehives on our headquarters in Herzogenaurach,as well as on our(outsourced)German central logistics centre.BIODIVERSITY IN OUR SUPPLY CHAIN Many species,including plants,animals,bacteria and fungi are being threatened with

157、extinction due to human activities such as deforestation,putting Earths biodiversity at risk.Apparel supply chains are directly linked to soil degradation,conversion of natural ecosystems and waterway pollution.Two-thirds of apparel shoppers say that limiting the impact on climate change is now more

158、 important to them now than before COVID-19(McKinsey:Biodiversity The next frontier in sustainable fashion).PUMA is a signatory to the Fashion Pact,a global initiative of companies in the fashion and textile industry(ready-to-wear,sport,lifestyle and luxury),all committed to a common core of key env

159、ironmental goals in three areas mitigating global warming,restoring biodiversity and protecting the oceans.Biodiversity loss and climate change are interdependent and mutually reinforcing.For example,protecting forests could help reduce greenhouse gas emissions.In turn,the rise of global temperature

160、s increases the risk of species becoming extinct.In 2019 PUMA published its science-based emissions target(SBT)with the SBT Coalition and joined the Fashion Pact.In 2023 an updated and 1.5 degree aligned science-based emissions target was approved for Scope 1 and 2 by SBT Coalition.Please see the Cl

161、imate section of this report to find out about our climate action and progress.T.48 SUSTAINABLY SOURCED NATURAL MATERIALS Sub-targets 2023*2022*2021 Target 2025 Science Based Target(SBT)Fund Biodiversity Landscape Report Fund Biodiversity Landscape Report Joined Fashion Pact activities on biodiversi

162、ty SBT set Cotton(BCI*and/or recycled)99.2%99.9%99%100%Leather(LWG-certified tanneries)99.7%100%99.9%100%Down(RDS-certified)100%100%100%100%Sustainably sourced viscose/MMCF 84%97%38%100%Cardboard and paper(FSC and/or recycled)99.4%*99.4%*99%(product packaging supply chain)100%*Including trims and ex

163、cluding licensee production*Better Cotton Initiative(BCI)principle:Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria.Management practices address identifying and mapping biodiversity resources,identifying and restoring degraded areas,enhancing populations of benefic

164、ial insects,ensuring crop rotation and protecting riparian areas.*Including outer cardboard Most of the negative impact on biodiversity comes from three stages in the value chain raw material production,material preparation and processing,and end of life.PUMA Annual Report 2023 Sustainability 179 To

165、 mitigate the risk of biodiversity loss due to the production process,we address environmental pollution risk through our targets and supplier programmes related to climate,chemicals,water and air.In 2021 we developed roadmaps for water and waste,which can be found in the Water and Air,and Circulari

166、ty sections of this report.In 2022 we developed a biodiversity roadmap using the Fashion Pact Biodiversity Strategy Tool Navigator that is in line with SBTN recommendations.At cotton farming level,Regenerative Agriculture practices aim to reduce the impact of production on soils and promotes soil he

167、alth by restoring the soils organic carbon.Through our partnership with Better Cotton,we support regenerative cotton farming practices.BCI farmers have to follow these two principles,among others:Care for the health of soil:This principle requires farmers to develop a Soil Management Plan.The plan s

168、hould include practices that contribute to maintaining and enhancing soil structure and soil fertility,and continuously improving nutrient cycling.Enhance biodiversity and use land responsibly:This principle requires Better Cotton farmers to adopt a Biodiversity Management Plan to conserve biodivers

169、ity on and around their farm.This plan includes regenerative farming practices such as ensuring crop rotation,which helps with soil regeneration.BIODIVERSITY ROADMAP Scope:Cotton,Leather,Rubber,Paper,MMCF,Synthetics,Wool Below are some key focus areas for the coming years.Some measures were implemen

170、ted in 2022 and 2023 and are covered in this report.Raise awareness:We see the need to raise awareness internally and will be developing an e-learning on biodiversity for our staff.We also see the need to increase the awareness of our consumers.We aim to maintain transparency to keep a strong relati

171、onship with stakeholders while providing information about biodiversity actions.In 2022,PUMA sponsored the Biodiversity Landscape Analysis Report as an opportunity to foster collaboration and knowledge-sharing in biodiversity.Together with Textile Exchange,Conservation International and the Fashion

172、Pact,the Biodiversity Landscape Analysis Report aims to provide a common reference point on the topic of biodiversity in the textile industry,and to offer concrete pathways for brands and retailers to deepen their engagement.The report,which was published in 2023 intends to help companies of all siz

173、es and maturities to begin or continue their biodiversity journey.Knowledge of impact:We will explore traceability tools and conduct impact assessments,starting with leather and rubber.We collect material and packaging consumption data on an annual basis for the country of origin.For example,only a

174、small percentage of the total leather used in PUMA products originates from South America,where deforestation is occurring at a rapid pace.Our EP&L identifies how the environmental impact is distributed along our value chain,for example,land use change per country,material type and tier level.The po

175、tential financial impact on land use was estimated to be approximately 100 million in our 2023 EP&L.Internal action:We will define a KPI to be included in a supplier scorecard(environmental and chemical)and set biodiversity targets as well as traceability targets,starting with leather.We set goals t

176、o reach 100%cotton,leather,viscose,paper packaging and down-procured from certified sources in 2025.Both cotton farming and cattle ranching require extensive land use and are known to reduce biodiversity,99.2%of cotton used in PUMA products is BCI or recycled cotton.99.7%of the leather used in our f

177、oot-wear is sourced from Leather Working Group(LWG)medal-rated tanneries.Leather traceability is a first step towards reducing deforestation.We monitor our LWG medal-rated tanneries traceability performance and have joined the LWG Traceability working group.We partner with the NGO,Canopy,a Canadian

178、non-profit organisation with the mission to protect the worlds forests,species and climate,and to help advance indigenous communities rights.We aim to ensure that our sourcing of man-made cellulosic materials(such as viscose)as well as paper and cardboard,does not contribute to de-forestation.99.4%o

179、f our paper packaging is either recycled and/or FSC-certified.We commit to sourcing PUMA Annual Report 2023 Sustainability 180 100%of our viscose from suppliers committed to reducing the risk of sourcing from ancient and endangered forests.In 2023,84%of viscose was sourced from Green Shirt-rated sup

180、pliers.We hardly used wool(6,566 kg in 2023),but we have initiated Responsible Wool Standards certification.We aim to reach 100%certified responsible wool by 2025.Collaboration and partnership:PUMA joined the Fashion Pact,a global coalition of companies in the fashion and textile industry that is co

181、mmitted to stopping global warming,restoring biodiversity and protecting the oceans.PUMA joined the Fashion Charter,and committed to sourcing 100%of priority materials as preferred materials by 2030(material for which no natural ecosystems are converted or deforested).In 2021 we engaged with Canopy,

182、who helped us develop our policy on forest protection.We also engaged with Canopys initiatives:CanopyStyle and Pack4good.Through these initiatives,we started investigating the next generation of raw materials with a focus on biobased materials,such as wheat straw,as a partial substitute for paper in

183、 our shopping paper bags.BIODIVERSITY RISK ASSESSMENT In 2023,we conducted a biodiversity risk assessment for our key raw materials such as cotton,polyester and leather.For cotton and polyester,we used the Materials Impact Explorer tool provided by Textile Exchange.For leather,we used the Biodiversi

184、ty Risk and Impact Dashboard of Fashion Pact.PUMA is currently taking steps to mitigate biodiversity risks and address environmental pollution risks through our targets and supplier programmes related to the climate,chemicals,water and air.We evaluated the environmental risk of rubber using the EiQ

185、platform from Elevate.EiQ is a data-driven supply chain Environmental,Social,and Governance(ESG)due diligence platform used by businesses to enhance ESG risk management.The environmental risk encompasses water use,non-GHG air pollutants,terrestrial ecosystem use,soil pollutants,solid waste and water

186、 pollutants.We also mapped our sourcing of these materials by country.For cotton and polyester,we mapped our material consumption by country of origin using the Materials Impact Explorer tool to evaluate the potential impact on biodiversity in terms of changes in the state of nature(quality or quant

187、ity)which may result in changes to the capacity of nature to sustain social and economic functions.We also evaluated the risk of dependency in terms of environmental assets and ecosystem services that an organisation relies on to function.The dependency risk rating for recycled cotton and recycled p

188、olyester is not applicable as per the tool used.The outcome of the assessment is summarised below.The risk profile of a few countries from which PUMA is sourcing cotton and polyester is not available in the tool.However,such countries represent less than 5%of our sourcing volume for cotton and 13%fo

189、r polyester.As a next step,we will look at a collaborative approach and join programmes with third-party initiatives to understand governance challenges.Cotton:In 2023,we sourced 63%of cotton from the USA,followed by Brazil(15%)and Australia(8%).These three countries have high a risk rating for pote

190、ntial impact.4%of cotton is sourced from India which a very high-risk country.In terms of dependency risk,the USA,Brazil and Australia are categorised as high-risk countries,whereas India is categorised as a very high-risk country.We have required our suppliers to source only cotton grown in farms t

191、hat are licensed as having good farming and human rights standards or recycled cotton from factories that are either Global Recycled Standard(GRS)or Recycled Claim Standard(RCS)certified in 2025.PUMA is taking steps to mitigate the biodiversity risks associated with the cotton sourcing.These include

192、 the adoption of BCI cotton,increased usage of recycled cotton,focusing on innovation to increase the share of recycled cotton in our products,conducting Life Cycle Assessment of products and materials to evaluate PUMA Annual Report 2023 Sustainability 181 environmental impact in different lifecycle

193、 stages and engaging with textile exchange to stay informed on industry best practices.We collect material consumption data on an annual basis along with the country of origin and require our suppliers to keep all the supportive documentation at disposal.We have also established an on-going due dili

194、gence programme with our partner laboratory in Germany where we regularly test samples of cotton finished garments before shipment.This further strengthens traceability and control across our supply chain,from the raw material to the finished products.Through our partnership with Better Cotton,we su

195、pport regenerative cotton farming practices.Better Cotton Soil Health principles require farmers to develop a Soil Management Plan.The plan should include practices that contribute to maintaining and enhancing soil structure and soil fertility,and continuously improving nutrient cycling.Better Cotto

196、n Biodiversity principles require Better Cotton farmers to adopt a Biodiversity Management Plan to conserve biodiversity on and around their farms.This Plan includes regenerative farming practices such as ensuring crop rotation,which helps with soil regeneration.Biodiversity loss and climate change

197、are interdependent and mutually reinforcing.Protecting forests,for example,could help reduce greenhouse gas emissions.Through our partnership with Better Cotton,we also support cotton farmer producers for climate-friendly practices,Better Cotton has set the goal of reducing greenhouse gas emissions

198、by 50%per ton of Better Cotton lint produced by the end of the decade.In 2023,the share of BCI cotton was 90%and recycled cotton made up 8.6%of all cotton sourced by PUMA.Polyester:We sourced 79%of our polyester from China in 2023,followed by Taiwan 9.2%and Vietnam 7.4%.We sourced both virgin polyes

199、ter and recycled polyester from China,whereas we sourced only recycled polyester from Taiwan and Vietnam.China has a very high-risk rating in terms of the potential impact of virgin polyester.Recycled polyester is rated as medium risk irrespective of country of origin by the Textile Exchange tool.In

200、 terms of risk related to dependency,China,Turkey,South Korea,Japan and Indonesia are rated as very high-risk countries for virgin polyester whereas the USA and Germany are considered as high-risk countries.However,apart from China,we source a negligible volume(around 1%)from high,and very high-risk

201、 countries.We have required our suppliers to source only polyester-certified to Bluesign/Oekotex,or recycled polyester from factories that are either Global Recycled Standard(GRS)or Recycled Claim Standard(RCS)certified in 2025.PUMA has joined the Textile Exchange polyester challenge,since our 2025

202、goal of 75%recycled polyester is aligned with this challenge.While most of our recycled polyester to date has been made from PET bottles,PUMA launched the innovative RE:FIBRE programme,and can repurpose collected textile waste and other used materials to create new textiles.We engaged our core fabri

203、c manufacturing plants in energy efficiency programmes and are helping them to transition to 25%renewable energy processing in 2025.We monitor and report chemical discharges,and work to eliminate pollutant chemicals.In 2023,we sourced a bio-based,high-performance polyester fibre known as Sorona,whic

204、h constitutes 0.11%of our total polyester consumption.Sorona contains over 20%bio-based carbon,which helps reduce the environmental impact without sacrificing quality and performance.Sorona is produced using a fermentation process which utilizes corn sugar as the main ingredient.Leather:The Fashion

205、Pact Dashboard allows us to assess overall risk in terms of biodiversity loss and land use area.However,biodiversity risk specific to leather usage by a brand or company cannot be evaluated by using this dashboard.We plan to explore a more specific tool for leather in future.PUMA Annual Report 2023

206、Sustainability 182 In 2023,we sourced 61%of our leather from the USA,followed by Argentina(27%),Australia(6%)and Brazil(5%).The risk assessment indicates that the USA has a risk rating of very high for land use impact and high risk for biodiversity loss,while Argentina has a very high-risk rating fo

207、r land use impact and a medium risk rating for biodiversity loss.Australia has a medium-risk rating for both impact categories while Brazil has very high-risk rating for both impact areas.PUMA is taking several steps to mitigate the biodiversity risks associated with leather sourcing.These include s

208、ourcing leather from LWG-rated tanneries,setting goals for sourcing deforestation-free leather,and focusing on innovation in the development of recycled and other bio-based alternatives.We engage with Fashion Pact,Textile Exchange and the Leather Working Group to remain updated about industry best p

209、ractices.We have committed to sourcing all the bovine leather used in our products from verified deforestation-free supply chains by 2030 or earlier launched by global non-profits Textile Exchange and the Leather Working Group.The initiative aims to create equitable,transparent,and deforestation-fre

210、e leather supply chains.The cross-sector initiative is aimed at galvanizing brands into action to end the deforestation and conversion of natural ecosystems linked to leather sourcing.In doing so,it looks to protect wildlife habitats and biodiversity,preserve carbon stocks to mitigate climate change

211、,and protect human rights.Close to 100%of the leather that PUMA currently sources comes from Leather Working Group-certified tanneries.This means that the leather used in PUMA products comes from manufacturers who are working to implement industry best practices of environmental management and trace

212、ability.PUMA currently monitors its LWG medal-rated tanneries upstream traceability performance.However,around 76%of the leather used at PUMA is suede,a byproduct of the full-grain leather business.The challenge faced currently by PUMA and others in the industry is that most suede tanneries work wit

213、h agents and intermediaries alongside direct tanneries,to guarantee a stable supply which creates a challenge to have full traceability at the cattle ranch level.Our innovation team has worked to address the technological limitations of a shoe designed for composting and launched the RE:SUEDE experi

214、ment.In 2022,500 participants were asked to wear their RE:SUEDEs for six months before returning them to PUMA for the next stage of the experiment.A total of 412 pairs of worn RE:SUEDEs were returned to PUMA and sent to our industrial composting partner Valor Composting a family business that takes

215、a different approach to waste.We discovered that it is possible to turn the RE:SUEDE into Grade A compost under specific industrial conditions provided by Ortessa.RE:SUEDE is mainly made up of zeolite-tanned suede leather,hemp fibres,biodegradable TPE and organic cotton.The zeolite tanning process i

216、s an innovative approach to in tanning chemicals,which use mineral zeolite and is free from toxic substances such as chrome,heavy metal and aldehyde.We will continue to innovate with our partners to determine the infrastructure and technologies needed to make the process viable for a commercial vers

217、ion of the RE:SUEDE,including a take-back scheme,in 2024.Synthetic Rubber:We sourced,74%of our synthetic rubber from China,followed by Vietnam 14%and South Korea 4%.China and South Korea are high-risk countries,while the risk profile for synthetic rubber from Vietnam is not available on the EiQ plat

218、form.High risks are Greenhouse Gas emissions,water use and solid waste.We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.As part of our 10FOR25,we work on developing recycled materials as alternatives to rubber.In 2023,5%of synthetic rubber was r

219、ecycled.We engage our strategic outsole suppliers in Higg FEM(environmental performance tool measurement which includes energy use and greenhouse gas emissions,water use,wastewater,emissions to air and waste management)and work with them to eliminate pollutant chemicals.PUMA Annual Report 2023 Susta

220、inability 183 Natural Rubber:In 2023,we sourced 29%of natural rubber from Vietnam,followed by Brazil 25%,Pakistan 13%,and Thailand 5%.Vietnam is categorised as an extreme risk country,while risk profiles for natural rubber from Brazil,Pakistan and Thailand are not available on the EiQ platform.The m

221、ain high risks are water use and impact on ecosystem.In 2023,only 2%of the rubber used in our products was natural rubber.We aim in future to only source FSC certified rubber.FSC certification include adopting standards to maintain,conserve,and/or restore the ecosystem and environmental values of ma

222、naged forests and avoid,repair,or mitigate negative environmental impacts.G.35 PUMA CDP FOREST SCORE PUMAs CDP Forestry score improved from C in 2021 to B-in 2022.Until the end of January,2024,we retained our B-score.PUMAs rating is better than the average performance of the sector(textile and fabri

223、c goods)which has an average rating of C.The overall global average rating stands at C.For more information,please visit the CDP website.T.49 E-KPIS-PAPER1-4 *Including paper bags,office paper and cardboard consumption*Including outer cardboard boxes 1 PUMA figures include PUMA owned or operated off

224、ices,warehouses and stores.Includes our own production sites in Argentina.All other production is outsourced to independent supplier factories,some warehouse operations are outsourced to independent logistics providers.Franchised stores are excluded.2 PUMA production figures include core Tier 1 supp

225、lier factories,Apparel,Footwear&Accessories(54 factories)and core Tier 2 supplier factories,Leather,PU and Textiles(40 factories).3 Data includes extrapolations or estimates where no real data could be provided.4 Methodological changes over the last three years have influenced results.C2020C2021B-20

226、22Paper(tons)2023 2022 2021 2020 2019 2017%Change 2023/2022%Change 2023/2017 Paper and cardboard consumption PUMA*5,374 5,021 4,152 2,638 2,281 2,756 7%95%Certified or recycled paper and cardboard consumption PUMA 4,911 4,393 3,306 1,848 1,818 2,025 12%143%Percentage of certified or recycled paper c

227、onsumption 91%87%80%70%80%74%Paper and cardboard consumption from PUMA production(shoe boxes,hangtags)25,602*30,656*19,670*18,538 14,863 14,129-16.5%81.2%Percentage of certified or recycled paper and cardboard consumption from PUMA production 99%*99%*88%*99%100%n/a PUMA Annual Report 2023 Sustainabi

228、lity 184 ENVIRONMENTAL KEY PERFORMANCE DATA The PUMA Environmental Profit and Loss Account,or EP&L,calculates the environmental impact of PUMAs activities in financial terms across six categories from raw material production to the PUMA store.While the EP&L is not a precise measurement tool,it helps

229、 to show the categories and stages of the value chain in which the impact is greatest and therefore gives a good indication of where we should focus our efforts.The EP&L methodology,was developed in 2011 by PWC and Truecost,and later refined by Kering with the help of PWC.It mainly relies on materia

230、l input and spending data.Over the last years,we have added primary data for our Tier 1 and Tier 2 suppliers and developed specific EP&L emission factors for major materials used,such as Better Cotton.However,we are still in the process of fully aligning our EP&L methodology for Tiers 3 and 4 with i

231、nternal and external standards.As a result,the table below differs from our Scope 3 emission calculation in the Climate section and also results in a high water value for Tier 3 due to some wet processing for leather and polyester being attributed to Tier 3.We will continue to work on the alignment

232、of methodologies to strengthen the EP&L as a valuable risk assessment and information tool.G.36 EP&L RESULTS 2023 Air pollutionGHG emissionLand useWasteWater useWater pollutionTier 0OwnoperationsTier 1ProductmanufacturingTier 2ComponentmanufacturingTier 3Raw materialprocessingTier 4Raw materialprodu

233、ction2%9%14%28%48%TotalEP&L Value 2023:415 million10%33%21%4%11%22%100%PUMA Annual Report 2023 Sustainability 185 G.37 EP&L TREND 2020 2023 From our EP&L results,we can conclude that the production(48%)and processing of raw materials(28%)is responsible for the vast majority of the environmental impa

234、ct from a process point of view,while greenhouse gas emissions(33%),water pollution(22%)and land use(21%)are responsible for over half of all environmental impact measured by the EP&L in terms of impact categories.This confirms our strategy of transitioning to the use of low-impact materials at scal

235、e,while focusing on the reduction of greenhouse gas emissions across our supply chain.The EP&L trend over the last years shows that the EP&L value is growing slower than sales.This means that while the overall impact was growing,we were able to reduce the EP&L value relative to sales.In 2023,we achi

236、eved an absolute reduction.PRODUCT/MATERIAL-RELATED E-KPIS We have been measuring the average environmental key performance indicators(E-KPIs)from Textile and Leather manufacturing(Tier 2)and Apparel and Footwear manufacturing(Tier 1)since 2017.In 2023,the Greenhouse Gas emissions KPIs reduced acros

237、s the product divisions,both Tier 1 and Tier 2,except for the footwear division,where it almost remained stable(increase by 0.2%)as compared to 2020.CO2 emissions per piece of garment reduced by 23.2%;per square metre of leather produced,CO2 emissions have reduced by 40.7%and per ton of textile prod

238、uced,CO2 emissions reduced by 9.2%.This was mainly achieved due to various climate actions initiated as described in the report.The participation of core suppliers in cleaner production and renewable energy programmes,installation of rooftop solar projects,switching from coal to biomass,and the purc

239、hase of RECs are the main contributor for these reductions achieved in Greenhouse Gas emissions.In 2023,water consumption per pair/square metre reduced for footwear by 21.5%and 4.9%for textile as compared to the baseline of 2020 mainly due to the implementation of water efficiency measures including

240、 water recycling plants by a few textile mills towards the end of 2022.However,the water KPI increased for apparel by 9.4%,and for leather by 11.7%.For apparel,production reduced by 15%as compared to 2020(which is 33%reduction from 2022).Most of the apparel factories use water for domestic purposes

241、and hence water consumption depends on the number of workers.In 2023,the market environment and increased inventory levels resulted in a need for more cautious procurement from 44153054941501,0002,0003,0004,0005,0006,0007,0008,0009,00010,00001002003004005006007008002020202120222023EP&L ValueRevenueP

242、UMA Annual Report 2023 Sustainability 186 our suppliers,so the number of workers in core apparel factories decreased by 9%and production fell by 15%resulting in higher water consumption per piece of apparel as compared to 2020.Out of five leather factories,two were new core factories and have not pa

243、rticipated in resource efficiency programmes.One of the tanneries in China has relatively high water consumption as they process raw hide in-house,whereas other leather tanneries process wet blue leather(tanned leather,but not dried,dyed nor finished).Also,one tannery in Vietnam started tracking and

244、 reporting rainwater usage in 2023.In 2023,production waste to landfills decreased by 87.4%for apparel and by 64.7%for the footwear division as compared to the 2020 baseline.This is mainly due to the adoption of better waste disposal practices by our suppliers and being able to achieve diversion fro

245、m landfill.We also observed that factories were able to track and report waste data more accurately.T.50 FOOTWEAR E-KPI RESULTS(TIER 1)Value 2023 2022 2021 2020 2019 2018 2017 Change 2020-2023 Number of suppliers Energy/pair(kWh)1.63 1.36 1.41 1.31 1.30 1.25 1.40 24.8%21 CO2/pair(kg)0.75 0.7 0.68 0.

246、74 0.96 0.93 1.00 0.2%Water/pair(L)11.8 9.6 11.9 15.1 15.2 12.3 14.5-21.5%Waste/pair(g)122 134 141 145 127 109 116-15.6%Waste to landfills/pair(g)8.36 12.3 19.0 23.7-64.7%T.51 APPAREL E-KPI RESULTS(TIER 1)Value 2023 2022 2021 2020 2019 2018 2017 Change 2020-2023 Number of factories Energy/piece(kWh)

247、0.58 0.52 0.55 0.56 0.57 0.57 0.72 4.5%19 CO2/piece(kg)0.17 0.19 0.20 0.22 0.24 0.26 0.31-23.2%Water/piece(l)5.03 3.83 4.23 4.60 4.39 4.20 7.58 9.4%Waste/piece(g)60.7 58.2 62.3 54.3 56.3 46.5 44.0 11.8%Waste to landfills/piece(g)0.33 2.66 2.40 2.64-87.4%T.52 LEATHER E-KPI RESULTS(TIER 2)Value 2023 2

248、022 2021 2020 2019 2018 2017 Change 2020-2023 Number of factories Energy/SqM(kWh)7.37 7.55 6.46 7.05 8.19 8.65 9.10 4.5%5 CO2/SqM(kg)1.61 2.34 1.89 2.72 3.21 3.16 3.39-40.7%Water/SqM(L)76.4 56.9 60.9 68.3 74.7 90.20 91.80 11.7%Waste/SqM(kg)0.67 0.60 0.50 0.68 0.78 0.85 1.56-1.4%PUMA Annual Report 20

249、23 Sustainability 187 T.53 TEXTILES E-KPI RESULTS(TIER 2)Value 2023 2022 2021 2020 2019 2018 2017 Change 2020-2023 Number of factories Energy/ton(kWh)14,320 13,122 13,394 13,049 12,636 13,387 13,679 9.7%32 CO2/ton(T)4.06 4.54 4.58 4.47 4.37 4.45 4.45-9.2%Water/ton(m3)98.3 98.5 98.7 103 106 123 119-4

250、.9%Waste/ton(kg)276 289 121 78.9 62.1 70.6 300 250.0%For tables on E-KPI results,the values for November and December 2023 were estimated by employing the Exponential Smoothing(ETS)algorithm in Microsoft Excel,utilizing data from January to October of 2023.This approach was chosen after comparing it

251、 to alternative methods,considering its performance against actual historical data,specifically in terms of deviation from the actual values in percentage terms.The ETS method displayed both higher accuracy and higher precision compared to other methods,such as averaging the last 10/12 months or mul

252、tiplying the estimated production by the average KPI(per production unit)from the 12 months of data spanning from November 2021 to October 2022.PUMA Annual Report 2023 Sustainability 188 REPORTING IN ACCORDANCE WITH THE EU TAXONOMY REGULATION TAXONOMY OBJECTIVES The Taxonomy Regulation(EU)2020/852(i

253、n the following“the Taxonomy”)entered into force on 22 June 2020.The purpose of this regulation is to provide a definition of what constitutes a sustainable economic activity and to redirect capital flows into companies that are aligning their business models towards such sustainable economic activi

254、ties.To achieve this goal,companies must report on the proportion of“environmentally sustainable”revenues,investments(capital expenditure)and operating expenses.The focus of the Taxonomy lies on 6 environmental objectives:Climate change mitigation Climate change adaptation Sustainability and protect

255、ion of water and marine resources Pollution prevention and control Protection and restoration of biodiversity and ecosystems Transition to a circular economy The Taxonomy has identified eligible economic activities that substantially contribute to each of these environmental objectives.Linked to the

256、se eligible activities are technical screening criteria as well as do no significant harm criteria and minimum safeguards that define whether the activity is considered sustainable or not(aligned).Delegated Regulation(EU)2021/2178 as of July 6,2021 on the climate objectives(climate change mitigation

257、(Annex I)and climate change adaptation(Annex II)(“the Climate Delegated Act”),was published in the Official Journal on December 9,2021 and entered into force on January 1,2022(EU)2021/2139).Further delegated acts for the remaining objectives were published in 2023,namely EU 2022/1214(Complementary C

258、limate DA),EU 2023/2485(amending EU 2021/2139),EU 2023/2486(targets three to six),C(2023)3850(Amended Climate DA)and C(2023)3851 Environmental DA(targets three to six).DISCLOSURE REQUIREMENTS FOR NON-FINANCIAL UNDERTAKINGS According to Article 2 of the Climate Delegated Act and Article 8 of the Taxo

259、nomy any undertaking subject to the Non-Financial Reporting Directive(NFRD)must provide information on“environmentally sustainable”revenues,investments(capital expenditure)and operating expenses(OpEx).According to Article 10 of the Climate Delegated Act undertakings must disclose the proportion of T

260、axonomy-eligible and Taxonomy non-eligible economic activities in their total turnover,capital expenditure and operational expenditure.The eligibility of an activity implies that an activity is included in the Climate Delegated Act.Whether an activity is Taxonomy-eligible or not says nothing about t

261、he sustainability of that activity.Being Taxonomy-eligible is merely an indication that a certain activity makes a substantial contribution to one of the six environmental objectives of the Taxonomy.From January 1,2023,the disclosure must also include information on taxonomy alignment,meaning only a

262、ctivities that are included in the“environmentally sustainable share”of the three performance indicators.An economic activity is environmentally sustainable if it:makes a significant contribution to the achievement of one or more environmental goals(significant contribution,SC)PUMA Annual Report 202

263、3 Sustainability 189 does not result in significant harm to one of more of the environmental objectives(do no significant harm,DNSH)is carried out in compliance with a defined minimum level of protection(minimum safeguards,MS)and complies with technical screening criteria(TSC)of Annex I and Annex II

264、.TAXONOMY-ELIGIBILITY OF PUMAS ECONOMIC ACTIVITIES IN RESPECT TO THE ENVIRONMENTAL OBJECTIVES OF THE EU TAXONOMY The technical screening criteria in Annex I and Annex II of Delegated Regulation(EU)2021/2139 of June 4,2021 for the first two environmental objectives,namely climate change mitigation an

265、d climate change adaptation,do not list any business activities that are linked to the production and sale of footwear,apparel and accessories.This means that PUMAs business activities so far do not qualify as contributing substantially to climate change mitigation or climate change adaptation.Furth

266、er technical screening criteria were published as Annexes I,III and IV of Delegated Regulation(EU)2023/2486(supplementing EU 2020/852)of June 27,2023,for the remaining environmental objectives,namely sustainable use and protection of water and marine resources,pollution prevention and control as wel

267、l as restoration of biodiversity and ecosystems.Likewise,these do not list any business activities that are linked to the production and sale of footwear,apparel and accessories.For the remaining environmental objective published as Annex II,the transition to a circular economy,activities related to

268、 apparel are listed,but are limited to sales generated by services such as repair,remanufacturing or refurbishment,preparation for reuse,sale of second-hand goods,or product as a service business models,none of which are not part of PUMA current revenue generating activities.As mentioned in the Circ

269、ularity section of this report,PUMA and its partners are piloting fibre to fibre recycling technology and take-back systems.However,those activities have not generated any significant Taxonomy-eligible or aligned sales under the definition of Annex II and had a project status in 2023.Therefore,PUMAs

270、 business activities in this regard are not considered Taxonomy-eligible(so far).Since PUMA does not have any economic activities related to nuclear power or power generation from gas,PUMA will not report the related standard forms from the Delegated Act(EU 2022/1214).ELIGIBLE CAPITAL EXPENDITURE PU

271、MA understands that the Taxonomy and the Climate Delegated Act as well as the Environmental Delegated Act including its Annexes nonetheless requires non-financial undertakings with non-Taxonomy eligible economic activities to report on the part of the capital expenditure related to the purchase of o

272、utput from Taxonomy-aligned economic activities and individual measures enabling target activities to become low-carbon or to lead to greenhouse gas reductions.In this regard PUMA reviewed so-called cross-cutting activities that are not directly related to PUMAs primary business activity and are not

273、 revenue-generating for PUMA but still are of relevance to support PUMAs sustainability efforts.Taxonomy-eligible capital expenditure could be identified with regard to“Transport”and“Real Estate Activities”.The key figures are determined based on Delegated Regulations(EU)2020/852,2021/2139 and 2021/

274、2178 as well as 2023/2385 and 2023/2086 in conjunction with the accounting policies to be applied to the consolidated financial statements.To avoid double counting,expenditure has been allocated to only one economic activity.PUMA Annual Report 2023 Sustainability 190 In 2023 PUMA made investments in

275、 several buildings,including:A new solar PV station in Germany(planned completion in 2024)New charging stations in Germany Office space in Argentina The technical screening criteria of Annexes I and II define a taxonomy-aligned investment in buildings only for those buildings that are ranked among t

276、he top 15%of their regional building stock in terms of Primary Energy Demand(PED).Since there is no precise definition of this 15%,for example in terms of area covered or primary energy demand per m2,and as the rental of buildings is not material to PUMAs business performance in terms of CO2 emissio

277、ns,we have decided to report the Taxonomy-aligned investment in buildings for 2023 as zero.This does not mean that PUMA is not investing in lowering CO2 emissions from its own entities.As described in the Climate section of this report,our Scope 1 and 2 emissions have been reduced by 85%compared to

278、our baseline in 2017,mainly through green electricity tariffs or renewable energy attribute certificates.In 2023 PUMA also invested in charging stations for electric cars,which do fall under the taxonomy alignment criteria for climate mitigation.The total investment in these charging stations was 24

279、1 TEUR(2022:79 TEUR).Furthermore,PUMA started to invest in additional solar PV capacity at its headquarters in Germany.The investment in 2023 came to 262 TEUR(no investment in 2022).As part of PUMAs 10FOR25 sustainability targets,PUMA is transitioning its car fleet to more sustainable transport vehi

280、cles.Therefore,in 2023 PUMA invested in the lease of 92 low or zero emission vehicles(2022:64 vehicles).Unlike buildings,the technical screening criteria for CO2 emissions for taxonomy alignments are clearly defined as below 50 g CO2/km.We can confirm that 92 cars added to our car fleet are Taxonomy

281、-aligned with the technical screening criteria based on their CO2 emission footprint,equalling an investment of over 2,000 TEUR(2022:1,521 TEUR)Considering the do-no-significant harm criteria of tires for passenger cars,not all those cars can be considered as fully Taxonomy-aligned,as many of the st

282、andard tires used for our new electric cars from Tesla,Volkswagen,Hyundai,Mercedes and BMW do not fulfil the criteria for noise emissions.As a result the reported Taxonomy-aligned investment in vehicles for the year 2023 is 408 TEUR(2022:372 TEUR).The total capital expenditure(IAS 16,38 and IFRS 16)

283、of the PUMA Group amounts to 599,874 TEUR for the year 2023(2022:669,382 TEUR).The eligible capital expenditure related to“Transport”amounts to 7,930 TEUR(2022:5,427 TEUR)and the amount related to“Real Estate Activities/Other”is 336,500 TEUR(2022:376,996 TEUR).The Taxonomy-aligned capital expenditur

284、e from investment in solar PV,low or zero emission cars and charging stations for electric cars was 910 TEUR(2022:372 TEUR).ELIGIBLE OPERATIONAL EXPENDITURE PUMA understands that the Taxonomy and the Disclosure Delegated Regulation(EU 21/2178)nonetheless asks non-financial undertakings with non-Taxo

285、nomy eligible activities to report on the part of the operational expenditure related to the purchase of output from Taxonomy-aligned economic activities and individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas reductions.PUMA Annual Report 2023 Sustai

286、nability 191 Due to the nature of our business model,which is the design,development,marketing and sale of footwear,apparel and accessories,the eligible operational expenditure is not material in the context of the environmental objectives of the Taxonomy,therefore the numerator of our taxonomy-elig

287、ible operational expenditure is zero.For the denominator,Article 2,Section 1.1.3.1.of Annex 1 the Climate Delegated Act asks for reporting on the total operational expenditure derived from the categories“research and development,building renovation measures,short-term lease,maintenance and repair an

288、d any other direct expenditures related to the day-to-day servicing of assets of property,plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such asset.”The total operational expenditure from

289、 these categories amounts to 113.4 TEUR(2022:103.6 TEUR)for the 2023 financial year.OUTLOOK At PUMA,we will continue the transition of our car fleet to low or zero emission vehicles in those countries where the charging infrastructure can support running an electric car fleet.We also plan to continu

290、e investing in te renewable energy capacity of the buildings we own.In addition,we will explore the activities listed under“Transition to a circular economy”to assess their technical and financial viability over the next years.PUMA Annual Report 2023 Sustainability 192 Proportion of turnover from pr

291、oducts or services associated with Taxonomy-aligned economic activities disclosure covering year 2023 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code Turnover Proportion of turnover Climate change mitigation Climate change adaptation Water Polluti

292、on Circular Economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum Safeguards Proportion of Taxnomy-aligned(A.1)or eligible(A.2)turnover,year 2022 Category enabling activity Category transitional activity Currency()%Y;N;N/EL Y;N

293、;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T A.TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities(Taxonomy-aligned)Taxonomy-aligned environmentally sustainable activities performed by PUMA 0 0 N/EL N/EL N/EL N/EL N/EL N/EL n.a.n.a.n.a.n.a.n.a.n.a.n.a

294、.0 Turnover of environmentally sustainable activities(Taxonomy-aligned)(A.1)0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 Of which enabling 0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 Of which transitional 0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 A.2 Taxonomy-eligible but not environmentally

295、sustainable activities(not Taxonomy-aligned activities)Taxonomy-eligible environmentally sustainable activities performed by PUMA 0 0 N/EL N/EL N/EL N/EL N/EL N/EL n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 Turnover of Taxonomy-eligible but not environmentally sustainable activities(not Taxonomy-aligned activiti

296、es)(A.2)0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 PUMA Annual Report 2023 Sustainability 193 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code Turnover Proportion of turnover Climate change mitigation Climate change adaptation Water Pollution Ci

297、rcular Economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum Safeguards Proportion of Taxnomy-aligned(A.1)or eligible(A.2)turnover,year 2022 Category enabling activity Category transitional activity Currency()%Y;N;N/EL Y;N;N/EL

298、 Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T A.Turnover of Taxonomy eligible activities(A.1+A.2)0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 B.TAXONOMY-NON-ELIGIBLE ACTIVITIES Turnover of Taxonomy-non-eligible activities 8,601,699,000 100 TOTAL 8,601,699,000 100 PUMA Annual

299、Report 2023 Sustainability 194 Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities disclosure covering year 2023 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code CapEx Proportion of CapEx,2023 Climate

300、change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum safeguard Proportion of Taxonomy aligned(A.1)or eligible(A.2)CapEx,2022 Category enabling activity Categ

301、ory transitional activity Currency()%Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T A.TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities(Taxonomy-aligned)Activity 1:Installation,maintenance and repair of charging stations for electric vehic

302、les in buildings(and parking spaces attached to buildings)(7.4)F42,F43,M71 240,000 0.04 Y Y N/EL N/EL N/EL N/EL Y n.a.n.a.n.a.n.a.n.a.Y 0.01 E Activity 2:Installation,maintenance and repair of renewable energy technologies(7.6)F42,F43,M71 262,000 0.05 Y Y N/EL N/EL N/EL N/EL Y n.a.n.a.Y Y n.a.Y 0 E

303、Activity 3:Transport by motorbikes,passenger cars and light commercial vehicles(6.5)N77.11 408,000 0.07 Y Y N/EL N/EL N/EL N/EL Y Y n.a.Y Y n.a.Y 0.04 E CapEx of environmentally sustainable activities(Taxonomy-aligned)(A.1)910,000 0.16 0.16 0.16 0 0 0 0 Y Y n.a.Y Y n.a.Y 0.05 Of which enabling 910,0

304、00 0.16 0.16 0.16 0 0 0 0 Y Y n.a.Y Y n.a.Y E Of which transitional 0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.T PUMA Annual Report 2023 Sustainability 195 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code CapEx Proportion of CapEx,2023 Climate cha

305、nge mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum safeguard Proportion of Taxonomy aligned(A.1)or eligible(A.2)CapEx,2022 Category enabling activity Category

306、 transitional activity Currency()%Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T A.2 Taxonomy-eligible but not environmentally sustainable activities(not Taxonomy-aligned activities)Activity 1:Acquisition and ownership of buildings(7.7)L68 335,998,000 60.01 EL

307、EL N/EL N/EL N/EL N/EL 56.31 Activity 2:Transport by motorbikes,passenger cars and light commercial vehicles(6.5)N77.11 7,522,000 1.34 EL EL N/EL N/EL N/EL N/EL 0.77 CapEx of Taxonomy-eligible but not environmentally sustainable activities(not Taxonomy-aligned activities)(A.2)343,520,000 61.36 61.36

308、 61.36 0 0 0 0 57.09 A.CapEx of Taxonomy eligible activities(A.1+A.2)344,430,000 61.52 61.52 61.52 0 0 0 0 57.13 B.TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible activities 215,444,000 38.48 42.87 TOTAL 559,874,000 100 PUMA Annual Report 2023 Sustainability 196 Proportion of OpEx fr

309、om products or services associated with Taxonomy-aligned economic activities disclosure covering year 2023 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code OpEx Proportion of OpEx,2023 Climate change mitigation Climate change adaptation Water Pollu

310、tion Circular Economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum safeguard Proportion of Taxonomy aligned(A.1)or eligible(A.2)OpEx,2022 Category enabling activity Category transitional activity Currency()%Y;N;N/EL Y;N;N/EL Y

311、;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T A.TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities(Taxonomy-aligned)Taxonomy-aligned environmentally sustainable activities performed by PUMA 0 0 N/EL N/EL N/EL N/EL N/EL N/EL n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 OpEx

312、 of environmentally sustainable activities(Taxonomy-aligned)(A.1)0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 Of which enabling 0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 Of which transitional 0 0 0 0 0 0 0 0 n.a.n.a.n.a.n.a.n.a.n.a.n.a.0 A.2 Taxonomy-eligible but not environmentally sustainable

313、 activities(not Taxonomy-aligned activities)Taxonomy-eligible environmentally sustainable activities performed by PUMA 0 0 N/EL N/EL N/EL N/EL N/EL N/EL 0 OpEx of Taxonomy-eligible but not environmentally sustainable activities(not Taxonomy-aligned activities)(A.2)0 0 0 0 0 0 0 0 0 A.OpEx of Taxonom

314、y eligible activities(A.1+A.2)0 0 0 0 0 0 0 0 0 PUMA Annual Report 2023 Sustainability 197 Substantial contribution criteria DNSH criteria(Does Not Significantly Harm)Economic Activities Code OpEx Proportion of OpEx,2023 Climate change mitigation Climate change adaptation Water Pollution Circular Ec

315、onomy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular Economy Biodiversity Minimum safeguard Proportion of Taxonomy aligned(A.1)or eligible(A.2)OpEx,2022 Category enabling activity Category transitional activity Currency()%Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL

316、 Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N%E T B.TAXONOMY-NON-ELIGIBLE ACTIVITIES OpEx of Taxonomy-non-eligible activities 113,400,000 100 TOTAL 113,400,000 100 PUMA Annual Report 2023 Sustainability 198 INDEX FOR COMBINED NON-FINANCIAL REPORT AND GRI CONTENT This report constitutes a separate c

317、ombined non-financial report in accordance with Sections 289b to 289e and 315b,315c in conjunction with Sections 289c to 289e of the German Commercial Code(HGB).This consolidated combined non-financial report consists of the Sustainability and Culture subsections in the Our Peoplesection as well as“

318、Compliance Management System”and“Corporate Social Responsibility”in the chapter“Corporate Governance Statement in accordance with Section 289f and Section 315d HGB”.The reporting period covered is from January 1,2023 to December 31,2023.No restatements of information have been made in this report.We

319、 have provided separate reports for PUMA SE and the PUMA Group within the“Our People”section only.Separate reporting of other sustainability data would not add any meaningful new information or value and would require significant additional resources,so we have omitted it here.Information about PUMA

320、s business model is set out in the Financial section of this Annual Report.We have not identified any most significant non-financial performance indicators according to Article 289c,section 3,number 5 of the German Commercial Code(HGB).PUMA engaged KPMG AG Wirtschaftsprfungs-gesellschaft to perform

321、a“limited assurance”audit of the combined sustainability report with a focus on accordance with the German CSR Implementation Act(CSR-RUG).Since 2003 PUMAs sustainability reports are based on the guidelines of the Global Reporting Initiative(GRI),which developed detailed and widely recognised standa

322、rds on sustainability reporting.PUMA SE has prepared this report with reference to the GRI Standards GRI 1:Foundation 2021.This option enables us to report on the impacts related to our economic,environmental,social and governance performance.It includes topics that are material to PUMAs business an

323、d our key stakeholders,and that constitute our sustainability targets.These targets have been systematically developed in accordance with the feedback from PUMAs stakeholders.PUMA Annual Report 2023 Sustainability 199 GENERAL DISCLOSURES Location Pages GRI 2:General Disclosures 2021 2-1 Organisation

324、al details Commercial activities and organisational structure 214 2-2 Entities included in the organisations sustainability reporting Scope of the Report 48 2-3 Reporting period,frequency and contact point Index for combined non-financial report and GRI content,Imprint 198 2-4 Restatements of inform

325、ation Index for combined non-financial report and GRI content 198 2-5 External assurance Limited assurance report of the independent practitioner regarding the separate non-financial group report 205 2-6 Activities,value chain and other business relationships Commercial activities and organisational

326、 structure;Sourcing 214,220 2-7 Employees Our People;Employees 16,222 2-9 Governance structure and composition Description of the working practices of the management board and the supervisory board 254 2-10 Nomination and selection of the highest governance body Description of the working practices

327、of the management board and the supervisory board 254 2-11 Chair of the highest governance body Description of the working practices of the management board and the supervisory board 254 2-12 Role of the highest governance body in overseeing the management of impacts Sustainability organisation and

328、governance structure;Description of the working practices of the management board and the supervisory board 36,254 2-13 Delegation of responsibility for managing impacts Sustainability organisation and governance structure 36 2-14 Role of the highest governance body in sustainability reporting Susta

329、inability committee 8 2-15 Conflicts of interest Diversity concept for the supervisory board 254 2-16 Communication of critical concerns Risk and opportunity report 255 2-17 Collective knowledge of the highest governance body Compensation System https:/ 2-19 Remuneration policies Description of the

330、working practices of the management board and the supervisory board 254 2-20 Process to determine remuneration Description of the working practices of the management board and the supervisory board.Compensation System https:/ 254 PUMA Annual Report 2023 Sustainability 200 Location Pages GRI 2:Genera

331、l Disclosures 2021 2-21 Annual total compensation ratio Description of the working practices of the management board and the supervisory board.Compensation Report https:/ 254 2-22 Statement on sustainable development strategy CEO Letter;Foreword 5,31 2-23 Policy commitments https:/ 2-24 Embedding po

332、licy commitments PUMAs FOREVER.BETTER.Sustainability Strategy;Human Rights 35,53 2-25 Processes to remediate negative impacts Human Rights 67-78 2-26 Mechanisms for seeking advice and raising concerns Compliance management system 254 2-28 Membership associations Stakeholder outreach 38-41 2-29 Appro

333、ach to stakeholder engagement Stakeholder outreach 38-41 2-30 Collective bargaining agreements Human Rights at own entities 53 MATERIAL TOPICS Location Pages 3-1 Process to determine material topics Most material aspects 42-44 GRI 3:Material Topics 2021 3-2 List of material topics Most material aspects 42-44 ANTI-CORRUPTION Location Pages 3-3 Management of material topics Relevant disclosures of c