Activewear brand Puma has been prowling down the sustainability road for many years, but a new emphasis on commitment will have implications for the Australian market. Melinda Oliver discovers how a logistics overhaul is key to the push.
The catch-cry sounds cute, but the mission is fierce. Puma is determined to reduce its environmental “paw print” with a renewed sustainability plan for the five years to 2015.
A core goal, announced at the Business for the Environment Summit in Korea late last month, is for Puma to become a carbon neutral company. It has set in place ambitious emission reduction targets across energy, water and waste.
This includes a Puma Sustainability Index that outlines tough benchmarks for the creation of environmentally friendly products.
Puma chairman and chief executive officer Jochen Zeitz says the global giant, which has stores in 80 countries, has long driven such action. Twelve years ago it launched the ‘puma.safe’ strategy, with a dedicated team of 13 people focused on overhauling environmental and social responsibility across the company.
“Corporations need to take on responsibility in order to offset what they have left behind,” Zeitz says. “If you look at the definition of economy it is to get maximum output with the minimum input, and we have to make sure the footprint that we leave behind is minimised or actually reduced to zero.”
A huge step in the new plan is to reduce CO2 emissions from transport by its logistics partners by 25 per cent in the period. Zeitz says this involves working with transport companies to reduce the distance its product travels and the quantity of fuel consumption. Cutting back on air transport and slowing the pace of ships is integral.
“Currently shipping agents are reducing the speed of the boats on the water, so the ships are travelling a bit slower which allows them to save a lot of water and energy, which is a cost saving for them,” he says.
To counter this, Zeitz says the company is reviewing production and design processes to find ways to shave time in the early stages, so that delivery cycles are not dramatically affected.
An increased focus on regional sourcing of materials will occur, to further cut transport.
“For example, we now source a significant amount of our product in India for India, rather than bringing it from China. The same is true for Latin America,” he says.
As reported on ragtrader.com.au, Puma packaging is also set for a major overhaul. Announced last month in London, a new, lighter packaging system will reduce transport diesel by 500,000 litres per year. The initiative is set to hit Australian Puma stores in the second half of 2011.
Created in conjunction with San Francisco-based industrial designer Yves Béhar of fuseproject, Puma experimented with 2000 ideas and 40 prototypes before arriving at the best solution. The result is the ‘Clever Little Bag’, which will replace traditional, bulky shoe boxes.
“It includes a cardboard structure that basically replicates the stability of a shoe box, but using 65 per cent less material,” Zeitz says. “The little bag is something that the consumer actually takes home, so rather than having another plastic bag, the [take home] bag is already part of the packaging.”
The concept is made with 100 per cent recycled paper and 20 per cent recycled non-woven polypropylene and is durable enough to protect shoes throughout the transport process.
T-shirts will be folded an extra time to reduce packaging size by 45 per cent, further reducing CO2 emissions from transport. This will also reduce water, energy and diesel consumption in the manufacturing process by more than 60 per cent per year. The packaging will also be made from biodegradable corn starch, saving 720 tonnes of plastic annually. Further, the paper used in swing tags will be reduced by 45 per cent, saving 182 tonnes of paper annually.
Overall, the new packaging will reduce paper use by eight and a half thousand tonnes, electricity by 20 million megajoules and fuel and water by one million litres each. A further 275 tonnes of plastic will be cut by the elimination of plastic shopping bags.
Additional changes on the way include the use of biodegradable starch bags in store, which can be composted.
“We are looking for product that can biodegrade without increasing the overall amount of energy used to produce it,” he says.
Puma is not only scrutinising its own green approach, but also that of its logistics and manufacturing partners.
“We have just had a supplier meeting in Asia where we have said if you want to be a partner in the future with Puma, you have to also follow the sustainability guidelines as well as publish a sustainability report. All our strategic partners will have to do that,” he says.
A team of international auditors ensure that each Puma factory across Latin America, Asia and other locations are checked for environmental and social standards every year. This tough line on operational transparency is balanced by Puma’s desire to help suppliers initiate change.
“[We’d say] let’s look at how you are actually using your water, how you are using your energy,” he says. “When you have your peaks and valleys, how you can switch over to renewable energy instead of using non-renewable energy sources? And then you can actually go deep into individual areas and say OK, how can we jointly set targets on key performance indicators?”
Overall, Puma’s suppliers have responded well. “I would say they understand that it’s an absolute necessity that if you want to be a strategic partner for Puma, it is something that needs to be done,” he says.
“They understand that it is an opportunity to even save some money on materials use, or energy use or water use. That is a win-win for everyone if it is done properly.”
Product changes will be implemented in line with the new Puma Sustainability Index, which should see 50 per cent of collections across footwear, apparel and accessories made according to best practice standards by 2015. A short term goal is that by the end of 2011, 30 per cent of apparel, 25 per cent of accessories and 15 per cent of footwear produced will comply.
The use of organic cotton, cotton made in Africa, recycled polyester and best practice manufacturing will be key.
“We have already in our product portfolio implemented a lot of new materials – more organic materials that don’t leave a significant footprint behind,” he says.
Within its offices, stores and warehouses, the company is aiming for a 25 per cent reduction of CO2, energy, water and waste. It has a ‘paperless’ office policy and offsets any essential paper use with tree planting initiatives.
From a consumer perspective, Zeitz says he hopes people will increasingly equate Puma with sustainability.
“If you think of Australia and the big changes you are making in legislation and your overall approach to the environment, more and more consumers are looking for sustainability in brands,” he says.
To help drive the message, Puma has teamed up with the United Nations Environment Program to raise funds for biodiversity projects, through promotion at the World Cup in June in South Africa.
Zeitz also hopes other fashion, sports and lifestyle companies attack a similar path.
“I think this is an area where others should look for best practice and cooperate rather than trying to do it on their own.”