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Puma Parent PPR To Expand Groundbreaking Environmental Accounting to All Brands

French apparel company PPR announced it will expand the trailblazing environmental accounting process it performed for its Puma brand across its entire group of brands, which includes Gucci, Stella McCartney and Yves Saint Laurent.

Puma’s Environmental Profit & Loss Account (E P&L), completed last year, was a first-of-its-kind attempt to monetize the value of ecosystem services used across a company’s entire supply chain. Puma found that cost to be EUR 145 million for the year 2010. 

PPR’s now has a multi-tiered action plan, including specific five-year targets, to implement a group-wide E P&L. PPR says the group E P&L will help in identifying new opportunities across the supply chain to enhance the sustainability of PPR’s products and to ultimately implement efficient and innovative initiatives to reduce the environmental impacts from the sourcing of raw materials, processing, manufacturing, and distribution of the group’s products. 

PPR did not give a specific date for completing the the group E P&L, but said in the interim, defined targets for 2016 will drive the group to reduce and manage the impacts associated with the production of the products of all PPR’s Luxury and Sport & Lifestyle brands. Key areas of focus are the reduction of CO2, waste and water; sourcing of raw materials; hazardous chemicals and materials; paper and packaging; and supply chain. A set of specific targets in these areas to be achieved by 2016 include:

  • Evaluating all key suppliers a minimum of every two years and helping guide them to meet best practices and adhere to PPR’s code of conduct.
  • Reducing carbon emissions, waste and water usage resulting from the production of products and services by 25%, while accounting for the growth of our business. All remaining emissions from scope 1 and scope 2 of the Greenhouse Gas Protocol will be offset annually. PPR will continue to partner with offset programs that contribute to the welfare of the community and the conservation of biodiversity in its regions of operations.
  • 100% of paper and packaging for PPR will be sourced from certified sustainably managed forests with a minimum of 50% recycled content.
  • All our collections will be PVC-free by 2016 at the latest.
  • Ensuring all hazardous chemicals have been phased out and eliminated from our production by 2020.
  • 100% of gold and diamonds in PPR’s products will be sourced from verified operations that do not have a harmful impact on local communities, wildlife or the ecosystems which support them.
  • 100% of leather from domestic livestock within PPR’s products will be from responsible and verified sources that do not result in converting sensitive ecosystems into grazing lands or agricultural lands for food production for livestock.
  • 100% of precious skins and furs in PPR’s products will come from verified captive breeding operations or from wild, sustainably managed populations.  Additionally suppliers will employ accepted animal welfare practices and humane treatment in sourcing.

To achieve these targets, PPR HOME is implementing detailed policy and guidelines and will be monitoring performance, with a priority focus on the sourcing and suppliers of raw materials. Additionally, PPR HOME will support the brands to customize action plans and to identify priority issues in order to achieve the overall 2016 group targets.

As part of PPR’s overarching sustainability strategy and alongside measuring, reducing and mitigating the group’s environmental and social footprint, remaining greenhouse gas emissions are being offset. As such, PPR has offset the 2011 global emissions from the Luxury division, Sport & Lifestyle division, and PPR’s headquarters totalling 95,100 tons to become carbon neutral in Scopes 1 & 2 of the Greenhouse Gas Protocol.

Carbon credits were purchased from Wildlife Works’ REDD (Reduced Emissions from Deforestation and Degradation) offsetting project in Kenya which is the world’s first Voluntary Carbon Standard (VCS) validated and verified REDD program. Wildlife Works’ project directly: reduces greenhouse gas emissions by protecting threatened forests that are essential in mitigating climate change; improves the quality of life for local communities; and conserves endangered wildlife.

PPR also acquired a five percent stake in Wildlife Works Carbon, LLC. Aside from already having 500,000 hectares under protection, Wildlife Works Carbon, LLC has a prospective project pipeline of several million hectares of natural forests around the world. The voluntary carbon market is placed for growth and potential for return could exceed the original investment by multiple times, PPR said. Additionally, the investment fulfills one of PPR’s goals to invest in for-profit businesses that incorporate biodiversity conservation and social concerns into their business model, resulting in net-positive social and environmental impacts.

PPR  will hold a seat on Wildlife Works’ Management Committee and have an active role in supporting Wildlife Works’ aims to secure five million hectares of native forest over the next three years and to protect them for a minimum of 20 years with an expected 25 million tons of CO2 emissions mitigated annually, while supporting human wellbeing and improved livelihoods for local communities.

“Over the next 5 years our goal is to implement actions that will measurably reduce our negative impacts, which will ultimately deliver innovative, sustainable products while retaining the quality and craftsmanship synonymous with luxury and the desirability of sport and lifestyle,” said Jochen Zeitz, Chief Sustainability Officer, PPR, “Investing in Wildlife Works Carbon, LLC rounds out our 5-year plan, linking our long-term strategy of a more sustainable business model to an investment that results in net-positive social and environmental impacts. The acquisition is a win-win-win for us as an investor, for the local community and for the land that is being conserved,” he added.

Bart King is a PR consultant and principal at Cleantech Communications.

Bart King is the principal and founder of New Growth Communications, a network of affiliated content producers and strategists serving clients in the emerging green economy. Follow him @bart_king and on LinkedIn.

[Read more about Bart King]

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