PUMA provides Scope 1 to 3 GHG emissions data from the past 3 years including a base year as well as a full breakdown of Scope 3 categories. [108] The brand publishes Tier 1 and Tier 2 suppliers as well as being the only brand to share a handful of Tier 3 suppliers according to its 2023 Global Factory List. [109]

PUMA is one of only two companies to share detailed information on its energy, electricity, and renewable energy usage in Scope 3, broken down by Tier. However, the company reports that its renewable electricity figure “includes REC purchases”, but does not provide data to show how much was from RECs compared with more impactful sourcing, which can undermine the integrity of its decarbonization performance. 

PUMA also provides the most transparent data about the progress of its coal phase-out program, including geographic spread and implementation status, although this is limited to “core suppliers”. [110] However, the brand does not provide data on what energy source suppliers transitioned to, which is important to understand the implications of the transition.

PUMA reported a significant Scope 3 Category 1 emissions reduction in the past year, and an overall reduction since 2019 well within the scope of a 55% total emissions reduction by 2030. Comparison with the company’s revenue also reveals emissions falling while revenue grows quickly, suggesting that the company has made progress in decoupling sales from emissions. 

PUMA has also reported rapid growth in its supply chain renewable electricity rates at both Tier 1 and Tier 2, achieving 23.1% and 21.7%, respectively. However, it is important to note that PUMA reports its supply chain renewable electricity is inclusive of REC purchases, which are not an impactful way of reducing fossil fuel reliance and can result in artificially lowered emissions. To show impactful progress in decarbonizing its supply chain, PUMA needs to transparently share the extent of its renewable electricity from higher vs lower impact sources.

In its own operations, PUMA reports sourcing 100% of its electricity from renewable sources but currently it is sourcing entirely from REC/EAC or standard grid offerings, which does not have a significant impact on decarbonization.

In its 2023 Sustainability Report, PUMA discloses that “In 2023, the number of core factories with coal-fired boilers reduced from 21 in 2022 to 17 due to our business priorities that implied the revision of our core factory list. Two factories out of 17 have successfully phased out coal and 11 factories have partially replaced coal. The remaining four factories completed a feasibility study and will initiate replacement in 2024.” [111] However, the company does not report whether the suppliers transitioned to biomass boilers, electrification, or alternatives, and the progress is limited to “core suppliers”.

Step 1: There are many examples of PUMA providing training and engagement with suppliers to reduce reliance on fossil fuels by energy efficiency measures and renewable energy. This includes the GIZ training partnership, the Clean by Design program, the Low Carbon Manufacturing Program, the Partnership for Cleaner Textile/IFC, the Mekong Manufacturing Alliance and the Greening Textile Program.[112] To support the transition away from coal, PUMA provides training. This touches on the biomass transition in Vietnam with the Trainers Act Renewable. It recorded 5 factories and 10 participants and includes mapping exercises across core suppliers and support with feasibility studies.[113]

Step 2: PUMA does not provide sufficient evidence on individual financial support for supply chain transitions; financial support reported is mostly through the Aii Clean by Design Program.[114] This is an area where the brand needs to show significantly more commitment to ensure that it is supporting a fair and lasting phase-out of fossil fuels across the industry and enabling a rapid transition.

Step 3: PUMA also sets high requirements that are included in its contracts. For example, it requires detail on GHG data, engagement in emissions reduction activity through programmes like the PaCT with IFC, the purchasing of renewable energy, setting science-based targets and has location-specific requirements for Chinese suppliers. Despite these efforts, it is unclear whether it is providing purchasing practices that are aligned with a just transition, such as paying green pricing premiums.

PUMA includes biomass in its Sustainability Handbook.[115] In previous correspondence with Stand.earth, it accepts the environmental impacts in the supply chain of burning biomass and has engaged with its suppliers on concerns surrounding price volatility and sustainability of biomass. [116]

When it comes to supply chain-based advocacy to increase access to renewable electricity and support a fossil fuel phase out, PUMA reported relatively few specific examples. The company is an active member of many associations/initiatives, including playing a steering role in the UNFCCC Fashion Charter, through which it joined a policy roundtable in Bangladesh and engaged in the policy discussions at COP28. PUMA is also involved in the SAC, German Corp for Into Corp GIZ (Vietnam, Bangladesh, Cambodia), CDP, WWF China, WRI Mexico, Fashion Pact, IFC – Bangladesh, Aii (China, Taiwan, Vietnam), Stiftung Klima Wirtschaft. [117]

Supply Chain Movement 

Six of the eight suppliers included in this analysis have set emissions reductions targets, while four also have public plans to increase the sourcing of renewable energy. Of the companies assessed, Crystal International Group has the highest reported renewable electricity ratio (38%), but only one company (Huali Industrial Group Co) reported a small share of its electricity coming from high-impact sources. Huali, one of PUMA’s biggest suppliers, reported that biomass accounted for 31% of its direct fuel use in 2022.