Puma get a lead on carbon emissions
German sportswear company Puma has put a price on its carbon emissions with a ‘profit and loss account’ that shows the true cost of its emissions across the board.
The the world’s third-largest sportswear manufacturing company not only put a price on its carbon usage but also represented the cost of future damage incurred from its emissions and water usage.
The analysis, which looked at Puma’s entire supply chain in detail, covered everything from the CO2 emissions from the animals that supply the leather for its shoes to the water needed to grow the cotton used in its fabrics.
To develop these first results of their E P&L, PUMA worked with accountancuy consultants PriceWaterhouseCooper (PwC) and research analysts Trucost to develop a methodology to first quantify the tonnes of Greenhouse Gas Emissions (GHG) emissions and cubic meters of water consumed in their business and supply chain operations, and then apply values to account for the associated economic impacts. The company determined that in 2010, the combined cost of the carbon it emitted and water it used was 94.4 million euros.
Puma say that they recognise that there manufacturing process has an effect all along its supply chain. A spokesman told the German press: “We wanted to look at where our biggest effects on the environment are,
“We’ve recognised that our current business model is not sustainable in the long run because we’ll eventually run up against a shortage of resources.”
As with many manufacturing concerns, a significant share of Puma’s environmental costs originate with the suppliers, many of whom are based in Asia. The company hopes that by looking at environmental impacts in detail, it can work with those suppliers – along with other companies who use them – and make sure outsourced processes are subject to the same kinds of environmental standards used in its own production.
Puma says that future carbon reports will be released with the financial accounts and subject to the same scrutiny from investors and stakeholders as the traditional year-end figures.