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Puma Cradle to Cradle Pilot Study Insights

The document summarizes a study on the economic, environmental, and social impacts of products certified under the Cradle to Cradle Certified Products Program. The study analyzed 10 certified products and their non-certified counterparts. Key findings include significant cost savings from water and energy efficiency improvements, replacement of toxic ingredients with safer alternatives, increased renewable energy use, and improved recycling of materials. The PUMA case study specifically found reductions in the certified sneaker's water use, energy needs, and improved design for composting at end of use.
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0% found this document useful (0 votes)
12 views30 pages

Puma Cradle to Cradle Pilot Study Insights

The document summarizes a study on the economic, environmental, and social impacts of products certified under the Cradle to Cradle Certified Products Program. The study analyzed 10 certified products and their non-certified counterparts. Key findings include significant cost savings from water and energy efficiency improvements, replacement of toxic ingredients with safer alternatives, increased renewable energy use, and improved recycling of materials. The PUMA case study specifically found reductions in the certified sneaker's water use, energy needs, and improved design for composting at end of use.
License
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

0

ACKNOWLEDGEMENTS
The study represents pilot research designed to contribute an initial evidence
base for the Cradle to Cradle CertifiedTM Products Program and stimulate
thought about how the making of things can be transitioned into a positive
force for people, planet and profit. While the study is not intended to provide
scientific verification or demonstrate causality, it does provide an initial
indication of the very significant economic, environmental and social
potential of the program. More granular research, considerate of a wider
sample of companies, is needed to strengthen the pilot findings. The Pilot
Study report series is available to download at [Link]/impact:

Roy Vercoulen led the study on behalf of the Cradle to Cradle Products
Innovation Institute. Please direct comments and questions to
roy@[Link]

The Cradle to Cradle Products Innovation Institute is a non-profit


organization, created to bring about a new industrial revolution that turns
the making of things into a positive force for society, economy, and the
planet. The Institute administers the publicly available Cradle to Cradle
Certified Product Standard, currently in its third version, along with the
Cradle to Cradle Certified Products Program to support it. It also audits the
product assessments conducted by its Accredited Assessment Bodies, and
issues the product certificates. The Institute is also responsible for selecting,
training and accrediting these assessment bodies worldwide.

The Cradle to Cradle Certified Product Standard is a continuous improvement


quality standard gifted to the Institute by William McDonough and Michael
Braungart after eighteen years of development  with  the  world’s  leading  
brands. It guides the assessment of a product across five quality categories
— material health, material reutilization, renewable energy and carbon
management, water stewardship, and social fairness. Qualifying products are
awarded one of five levels of achievement — BASIC, BRONZE, SILVER,
GOLD, or PLATINUM. Learn more.

Trucost Plc, a global environmental data and insight company, conducted


the Pilot Study research and delivered the report.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 2


ACKNOWLEDGEMENTS
The Cradle to Cradle Products Innovation Institute and Trucost thank the
following contributors and partners for their expertise, input and support:

The DOEN Foundation and Dutch Postcode Lottery

The C2C ExpoLAB and the City of Venlo

The Steering Committee: Bjorn Sanders, C2C ExpoLAB; Claire Teurlings,


Cooperation of Good; Mariska van Dalen, Tebodin Netherlands BV and Peter
Vissers, Partners for Innovation.

The Scientific Review Panel: Dr Gijsbert Korevaar of Delft University of


Technology, Netherlands, Dr Constance McDermott, of Oxford University,
United Kingdom; and Pavan Sukhdev, Visiting Fellow at Yale University, and
founder of GIST Advisory.

The Participating Companies: AGC Glass Europe; Aveda; Construction


Specialties; Desso; Ecover; Royal Mosa; Puma, Shaw Industries; Steelcase;
and Van Houtum.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 3


CONTENTS
INTRODUCTION 5
THE RESEARCH
READER’S GUIDE

THE PROGRAM 7

CONCEPTUAL FRAMEWORK 9
INTRODUCING THE CONCEPT OF ‘CAPITAL’
SUMMARY OF THE CONCEPTUAL FRAMEWORK

PUMA 12
THE COMPANY
THE PRODUCT

METHODOLOGY OVERVIEW 13
APPROACH

RESEARCH FINDINGS 17
KEY FINDINGS
MATERIAL REUTILIZATION
RENEWABLE ENERGY AND CARBON MANAGEMENT
WATER STEWARDSHIP
SOCIAL FAIRNESS
MATERIAL HEALTH
BUSINESS IMPACT
NET BENEFIT

CONCLUSIONS 27

ASSUMPTIONS 29

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 4


INTRODUCTION
Economic growth has been accompanied by serious natural resource
depletion and severe pollution impacts in recent decades.

According to the Global Footprint Network, one and a half Earths are needed
to support our current natural resource dependency and waste generation.
And if current population and consumption trends continue, moderate United
Nations estimates predict that we will need the equivalent of the resources of
two Earths to support us by the 2030s.

The Cradle to Cradle CertifiedTM Product Standard was established to reverse


unsustainable growth trajectories by transforming the way products are
designed,  what’s  in  them and where they go after use. Following Cradle to
Cradle principles, products are designed from the outset to provide resource
streams for new products at the end of their traditional use, or safely
biodegrade into the environment – continually circulating as pure and viable
nutrients that add value in the context in which they are used – and have as
many positive benefits as possible. In this way, product manufacturing and
product use become a positive force for people, planet and profit.

Because of these characteristics, Cradle to Cradle Certified products are


aligned with and can demonstrate the benefits of the circular economy
powered by Cradle to Cradle on a product-level and contribute to sparking
the transition towards more circular systems.

The Cradle to Cradle Products Innovation Institute asked Trucost to quantify


and assess the environmental, social and business impacts of its certification
program across its five quality categories: material health, material
reutilization, renewable energy and carbon management, water stewardship
and social fairness.
The Institute also engaged a panel of scientists from Oxford, Yale and Delft
universities, as well as expert stakeholders, to validate the research methods
and outcomes.

THE RESEARCH
Trucost carried out in-depth analysis of twenty products; ten certified to the
Cradle to Cradle Certified Product Standard and ten baseline pre-certification
or non-certified counterparts, with the aim of identifying and quantifying the
actual environmental, social and business impacts – and actual added value
– of the Cradle to Cradle Certified Products Program.

What emerged was a promising account of impact and value achieved by ten
companies undertaking Cradle to Cradle Certified product certification.

Across the ten companies, the economic potential of Cradle to Cradle


CertifiedTM product certification was evidenced through examples of higher
than average sales performance, positive growth and increased profit
margins, alongside significant cost savings related to water and energy
efficiency improvements.

Environmental and social benefits were also evidenced through


replacement of toxic and questionable ingredients by less toxic and
defined alternatives, conservation of product materials in continuous
product cycles, increased renewable energy use and improved energy and
water effectiveness.

The study research provides an evidence base demonstrating the economic,


environmental and social potential of the Cradle to Cradle Certified Products
Program. It is not intended to provide scientific verification or demonstrate
causality.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 5


INTRODUCTION
READER’S GUIDE

This case study details the findings of the analysis of a single Cradle to
Cradle Certified product compared to a non-certified equivalent. The
document is one of ten examples intended to support the Technical Report
which provides more information on the framework developed and a all
findings of the pilot study across a range of products and companies. This
document introduces the PUMA company narrative and product analysis of
the Cradle to Cradle Certified BASIC PUMA Incycle Basket sneaker, compared
to a conventional, non-certified PUMA sneaker. This identifies and describes
impact improvements in the fields of business, society and the environment,
related to PUMA’s  pursuit  of Cradle to Cradle Certified product certification.

An overview of the methodology is given on page 13 with a more detailed


discussion of the approach available in the supporting Technical Report. The
research findings (page 17) review work done by the company to optimize
product performance across the five quality categories of material health,
material reutuilization, renewable energy and carbon management, water
stewardship and social fairness, and its effect on business performance.
Through product optimization, PUMA reduced impacts of the Incycle Basket
sneaker across water consumption, energy requirements, and imporved
product design for end-of-use composting.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 6


THE PROGRAM
CRADLE TO CRADLE CERTIFIED PRODUCTS
PROGRAM
The Cradle to Cradle Certified Product Standard is a multi-attribute,
continuous improvement methodology that provides a pathway for
companies to produce safe, recyclable and sustainable products. It is
administered by the Cradle to Cradle Products Innovation Institute. The
certification standard was launched in 2005, after many years of
development by McDonough Braungart Design Chemistry, LLC (MBDC) in
cooperation with EPEA Internationale Umweltforschung GmbH. Since the
program began in 2005, nearly 200 companies worldwide have participated
in the Cradle to Cradle Certified Products Program, with hundreds of product
lines representing thousands of different products certified and millions of
products sold. Companies include Herman Miller, Shaw Industries, Steelcase,
Desso, PUMA and Ecover.

The current standard is version 3.0, building on version 2.1.1 of the standard
revised in 2010. It continues to be periodically revised to keep up with
current research, data, and technologies. Subsequent revisions1 are public
and will be informed by five expert advisory groups and public comment
periods.  The  process  is  managed  by  the  Institute’s  independent  Certification  
Standards Board2 (CSB) with input from consumers, manufacturers, NGO
partners, and other interested stakeholders.

Full details of the certification can be found at


[Link]

Products are analyzed by Assessment Bodies3 that have been trained and
accredited by the Institute. After auditing of this assessment, the Institute
awards the product an overall score or level while encouraging continual
improvement. Product certification is awarded at five levels (BASIC, BRONZE,
SILVER, GOLD and PLATINUM), with the expectation that an applicant will
optimize each aspect of their product over time. The ultimate goal is to
encourage innovation and the design of products that effectively and
positively impact people and the environment. Products are evaluated
according to the requirements in five categories based on the Cradle to
Cradle design principles.

THE FIVE PRODUCT STANDARD CATEGORIES


The five Cradle to Cradle Certified Product Standard categories are designed
to provide a pathway to manufacturing safe and recyclable products for our
world. The five categories are summarized overleaf:

1
[Link]
2
The Certification Standards Board (CSB) is an independent review panel, tasked with updating
the standard and adjudicating appeals related to product certification
[Link]
3
For detail of the Accredited Assessment Bodies see
[Link]

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 7


THE PROGRAM

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 8


CONCEPTUAL FRAMEWORK
INTRODUCING THE CONCEPT OF ‘CAPITAL’
The Cradle to Cradle Certified Product Standard is a multi-attribute standard,
so a holistic concept is needed to understand how it drives change in a
company’s  relationship  with  the  environment,  society  and  business.  The  
concept  of  ‘capital’  is  a  useful  starting  point.

All companies depend on various forms of capital for their success. These
capitals are stores of value that can, in one form or another, become inputs
to  a  company’s  business  model  or  be  affected  by  its  outputs  (such  as  
emissions from product processing). They are increased, decreased or
transformed through the activities of the company. There are six main types
as defined by the International Integrated Reporting Council (IIRC), financial
capital, manufactured capital, intellectual capital, human capital, social
capital and natural capital.

Financial capital is broadly understood as the pool of funds available to an


organization. This includes funds raised from both debt and equity finance.
Manufactured capital includes man-made physical objects (as opposed to
natural physical assets) that are used in the production of goods or the
provision of services

Intellectual capital is defined by IIRC as knowledge-based intangible


assets, in which they include tradable & private intellectual property such as
patents, copyrights,  software,  etc.  as  well  as  “organizational  capital”  such  as  
tacit knowledge, systems, procedures and protocols

Human capital consists  of  the  individual’s  health  and  capabilities  


(knowledge, skills and experiences), as well as the motivation and capacity
they have to enhance these capabilities.

Social or relationship capital is the relationships and networks together


with shared norms, values, trust and understandings that facilitate co-
operation within or among groups. Examples include the relationships found
in families, communities, businesses, trade unions and voluntary
organizations.

Natural capital is any stock of natural resources or environmental assets


that provides a flow of useful goods or services now and in the future. This
includes resources such as timber, fish, water and minerals, as well as
ecosystem services from which humans benefit such as climate regulation.

In environmental economics literature, however, there are typically only four


broad categories of capital - physical, human, social and natural capital.
These two categorizations are in fact consistent. ‘Physical  capital’ is the value
stored in man-made  assets,  be  they  “financial”  or  “manufactured”  or  
“intellectual”,  as  they  are  related: they are mostly privately owned, and one
can be converted to the other through markets. ‘Human  capital’ includes the
intellect and knowledge of humans – it resides in human minds. When owned
by businesses in the form of patents, copyrights, and software it can also be
classified as physical capital. ‘Social  capital’  resides in human relationships at
various levels, enabling social interaction and reducing transaction costs:
without social capital, normal business would become impossible to conduct.
‘Natural  capital’ is made by nature, not man, and includes all valued supplies
of goods, services and embedded intellectual property (used in bio-mimicry)
emanating from all levels of biodiversity – ecosystems, species and genes.
Together these capitals are  the  basis  of  a  company’s  value  creation.  They  
also underpin the quality of human well-being. Natural capital, for example,
underlines the need to maintain stocks of our natural assets such as
rainforests, grasslands, wetlands, and mangroves. These provide flows of

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 9


CONCEPTUAL FRAMEWORK
services that benefit society, such as clean air, fresh water, climate
regulation, crop pollination and protection from natural hazards. Similarly,
financial capital when invested and distributed fairly allows for the creation of
jobs and goods and services that ultimately benefit humans. These capitals
are also interrelated and can influence each other directly and indirectly.

At present the stocks of natural, human and social capital are not recognized
on  a  company’s  balance sheet and are seldom the subject of management
attention, and as such are being degraded or lost. In recent years, for
example, growth in financial capital has often come at the expense of serious
natural resource depletion and pollution impacts, representing costs to
natural capital (sub-soil assets as well as wilderness of many kinds) and
human capital (human health). The impacts of this imbalance are
increasingly being felt on society and business through increased healthcare
costs, increased volatility in the price of raw materials and intensifying
‘polluter  pays’  regulations,  to  name  but  a  few.

SUMMARY OF THE CONCEPTUAL FRAMEWORK


To capture the impacts of Cradle to Cradle Certified product certification, a
conceptual framework was developed to highlight the impact areas that are
affected through product optimization. Eco-effective products are considered
to  provide  ‘more  good’,  delivering  benefit  to  human  well-being. Underpinning
the conceptual framework is the principle that the manufacture of eco-
effective products demands the maintenance and enhancement of all forms
of capital upon which companies and their products rely. The five Cradle to
Cradle Certified Product Standard categories drive change in companies by
encouraging them to improve environment, social and business performance
to enhance and protect all forms of capital (for more detail on the framework
and methodologies, see the Technical Report).

To illustrate an example: let us consider the Cradle to Cradle Certified


program’s  material  health  category,  which  encourages  companies  to  quantify  
and understand their product material composition, identifying ingredients as
biological or technical nutrients, and removing hazardous chemicals, while
replacing  with  optimized  ‘good’  inputs.  The  adherence  to  this  quality  category  
motivates companies to improve understanding of their products through
detailed scientific assessment and continuously work to improve them,
through ongoing optimization. By reducing and ultimately eliminating
toxicity, the natural capital stock of clean air and water is maintained, which
itself has a positive indirect effect on human capital through improved health.

The figure overleaf outlines the conceptual framework.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 10


CONCEPTUAL FRAMEWORK
FIGURE 1: THE CONCEPTUAL FRAMEWORK

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 11


PUMA
COMPANY
Winner of the 2012 Guardian Sustainable Business Awards, PUMA is
considered a sustainability leader in the sports clothing and footwear
industry. Located in Germany, but with offices around the globe including
"InCycle, our USA, UK and Hong Kong, the company employs around 11,000 people
worldwide.
industry's first
PUMA has made many efforts to improve its production processes and
Cradle to Cradle
contribute to a better world.    The  company’s  ‘values focus on four key ideals:
Certified being fair, honest, positive and creative. In 2013 it launched the Incycle
collection, was range – the industry’s  first  Cradle to Cradle Certified recyclable and/or
biodegradable line of clothing, accessories and footwear. Later that year,
conceived to PUMA expanded the collection to include the Basket lifestyle sneaker
challenge PUMA (biodegradable), the PUMA Track Jacket (recyclable), shirts (biodegradable)
and a backpack (recyclable), among many other items.
to innovate and
push ourselves The Cradle to Cradle Certified Products Program has helped PUMA work
towards a more just and sustainable future, accelerating positive change in
to look at the industry and the world.
material flow THE PRODUCT
and focus on
closing the PUMA selected its Incycle Basket sneaker for analysis, based on study
selection criteria4.
loop."
"InCycle, our industry's first Cradle to Cradle Certified collection, was
Justin conceived to challenge PUMA to innovate and push ourselves to look at
DeKoszmovszky, material flow and focus on closing the loop." Justin DeKoszmovszky, Global
Global strategy strategy manager
manager
FIGURE 2: INCYCLE BASKET MEN’S SNEAKER

The footwear is Cradle to Cradle Certified at the BASIC level, to v2.1.1 of the
standard and is designed for the biological nutrient cycle. The upper part is
made of organic cotton and linen, while the sole is composed of the
biodegradable polymer APINATbio©. When collected through PUMA’s  Bring  
Me Back Program, shredded and transported to an industrial composting
facility, the materials of the Basket sneaker are designed to compost into
natural humus and become part of the ecosystem again.

The analysis compared a pair of Incycle Cradle to Cradle Certified sneakers


to a conventional pair of PUMA sneakers, which were not optimized to meet
the criteria of the certification.

4
Selection criteria included ensuring product was certified at any level, had a well understood
optimization process, and data was available for the product both before and after optimization.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 12


METHODOLOGY OVERVIEW
This section defines the methodology used by Trucost to apply the
conceptual framework to determine the impacts of certification across ten
companies’  products.  The section provides an overview of the methodology
used to assess the environmental, social and business impacts associated
with the Cradle to Cradle Certified Products Program. Detailed methodology
is provided within the Technical Report which is available at
[Link]/impact.

APPROACH
The impacts of product certification under the Cradle to Cradle Certified
Products Program can be considered on several levels and across three
impact fields: environmental, social and business. Environmental and social
impacts may be apparent internally and externally, affecting both the
company and third parties. Business impacts are directly linked to the
company and operations and can be considered internal. Each of the three
impact fields are given equal weighting for significance, though these will be
approached in different manners. Figure 3 considers how the capitals feed
into the three elements of human well-being.

An example given is the reutilization of materials. This reduces the


dependency on natural capital as less resource is required. This includes not
only material resource (such as wood, metal etc.) which is not required as
recycled content is used in place of virgin, but also recycling often reduces
the processing requirements required to convert raw material to product
material (for example crude oil needs to be extracted then separated and
processed into usable plastics for products – recycled plastic requires less
processing to return the product material to a useable input material). This
results in societal benefit through lower emissions and human health impacts
due to manufacturing processes (the social cost of natural capital impacts).
In turn, this impacts financial capital, directly related to business
performance, through greater control of material inputs, less commodity
dependency with associated price fluctuations and less external reliance on
potentially scarce resource.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 13


METHODOLOGY OVERVIEW
FIGURE 3: HOW CAPITALS FEED INTO HUMAN WELL-BEING

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 14


METHODOLOGY OVERVIEW
Businesses operate within society, which is in turn contained within the
environment. While these three aspects of human well-being can be
considered separately, they are also interrelated as shown in figure 3. Each
type of capital flows into these three aspects of well-being, and these are
identified in examples given in figure 4. Not all impacts are detailed,
however, this provides some context of how the capitals each apply to the
individual fields.

Figure 4 below provides detail of the source of data and approach used to
capture impacts across these different categories.

FIGURE 4: ALIGNMENT OF QUALITY CATEGORIES

Firstly, the individual impacts associated directly with the manufacture, use
and end-of-use of a particular product are compared to the equivalent
product before optimization for certification. The second consideration applies
to the wider context of the benefit to the company of having one or more
Cradle to Cradle Certified products.

Environmental, social and business drivers associated with each of the


quality categories were identified, quantified and evaluated across product-
use phases using a combination of quantitative and qualitative analysis.

The methodology is framed around four steps, given in figure 5.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 15


METHODOLOGY OVERVIEW
FIGURE 5: METHODOLOGY OVERVIEW

• Determine the limitations of the study and defining the areas upon which the
impacts are relevant, for example, social groups affected, areas of business
to include, or phases of a product cycle.
Define scope
and • For PUMA, this includes the raw materials, processing, direct operations,
boundaries outbound transportation and end-of-use.

• Selection of indicators to be assessed, i.e. identification of what needs to be


measured. The inventory may include environmental indicators such as tons
Determine of CO2e emitted or volume of water consumed, or may involve social
inventory indicators such as risk of child labour within the tier one of supply chain.

• Carrying out calculations or other qualitative analysis of the impacts.


Impact
assessment

• Evaluation of the results and translation of data into findings placed into a
context that is understandable.
Interpretation

Each step is considered in relation to the Cradle to Cradle Certified Product


Standard quality categories and the three areas of environment, business
and society in which the ultimate implications for human well-being exist.

The individual steps may be more or less significant for different scenarios,
but are always appropriate to consider. Complex quantitative work may
involve several steps within the impact assessment stage if numerous
calculations are required, whereas qualitative information may be more
directly understandable with less analytical processing required.

For the environmental impact analysis, interpretation includes the valuation


of indicators. Valuation of environmental impacts estimates the value of
natural goods and services in the absence of market prices to allow direct
comparison with financial performance and appraisal of potential profit at
risk. By applying valuation, the impacts are more aligned with the Cradle to
Cradle philosophy, placing the impacts into context, for example by
accounting for scarcity of water in the region it is consumed and the localized
impacts of air pollution at the point at which it is emitted.

Valuations were derived from academic journals, government studies and


established environmental economics techniques. The way in which these are
applied depends on the environmental indicator. Greenhouse gases, for
example, have the same impact wherever they are emitted. Values for other
pollutants and water use depend on local biophysical and human geography,
and so require a technique called benefit transfer to apply a value estimated
in one location to another.

For the social and business evaluations, qualitative interviews were carried
out to determine company trends and patterns that had been noted, but not
evidenced through quantitative data. These took into account the staff and
customer feedback, media responses and other anecdotal evidence of
impact.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 16


RESEARCH FINDINGS
KEY FINDINGS
This report demonstrates the business, social and environmental benefits of
the Cradle to Cradle Certified Product Standard for sportswear brand PUMA.

In 2013, PUMA achieved Cradle to Cradle Certified product certification at the


BASIC level for version 2.1.1 of the standard for its Incycle Basket sneakers.

Trucost compared the environmental, social and business benefits of a pair of


certified sneakers with non-certified, conventional PUMA sneakers.

BASIC level is the first step of the certification process. A BASIC level product
certified under Version 2.1.1 is at least 95% defined by material, down to
100 parts per million, with strategies in place to phase out any problematic
chemicals. All materials have been characterized as either a part of the
biological or technical cycle, and energy requirements for production have
been characterized. Though certified at a BASIC level, the PUMA Incycle
Basket exceeded requirements over several quality categories for this level of
certification.

The results show that the certified product is:

97% compostable, substantially cutting its end-of-use impacts

More energy efficient to manufacture, using half as much energy

More water efficient to make, with half the water footprint

Enhancing PUMA’s  reputation  as  a  sustainability  leader  by  showcasing


a design-focused solution to waste clothing

MATERIAL REUTILIZATION
Products are designed either to biodegrade safely or be compostable as a
biological nutrient or to be recycled into new products as a technical nutrient.
At each level continued progress must be made towards increasing the
recovery of materials and keeping them in continuous cycles.

Designing biodegradable or re-useable product materials, and ensuring


effective systems for recovering those materials, protects diminishing natural
resources by eliminating resource loss and disposal. It also avoids adverse
health and other social impacts arising from landfill or incinerated waste
disposal, and provides opportunities for business to re-use or re-market
product materials at the end-of-use to generate new revenue streams and
improve profitability.

The Basket Incycle is designed as a biological nutrient and is 97%


compostable.

Both the conventional and the Cradle to Cradle Certified footwear contain
renewable, plant-based material. The Incycle footwear is produced from 37%
renewable content and has 2% less non-renewable virgin material than the
non-certified footwear which is made from 9% recycled and 26% renewable
material.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 17


RESEARCH FINDINGS
FIGURE 5: PROPORTION OF PRODUCT COMPOSITION FROM
RENEWABLE OR RECYCLED CONTENT

The Incycle footwear is made with cotton, a rapidly renewable material. The
cotton is grown organically which results in less environmental impact than
conventional cotton. The environmental cost of growing a kilogram of organic
cotton is 7.2% less than conventional cotton (see Table 1). The conventional
footwear does contain recycled content – with recycled polyester used in
place of organic cotton. Polyester use would not allow the Incycle Basket to
be compostable at end-of-use, and therefore organic cotton is used in its
place.

TABLE 1: IMPACT ON HUMAN WELL-BEING ASSOCIATED WITH


COTTON, 2012

Total environmental cost per ton


Material type
(US$)

Organic cotton 610

Conventional cotton 660

This means that for every ton of cotton produced organically, US$50 less
natural capital dependency is resultant – potentially protecting the company
from future internalization of costs through environmental legislation or other
At end-of-use, Incycle footwear is compostable, designed specifically to meet
international composting standards. The conventional sneakers have not
undergone Cradle to Cradle Certified analysis, so their recyclability is unclear.
Sneakers are traditionally difficult to recycle, with rubber and cotton
requiring separation before they can be recycled. The analysis assumed that
no conventional footwear was recycled, and 100% was sent for reuse,
incineration or landfill.

PUMA designed the sneaker for composting but wanted to ensure consumers
had access to adequate collection of products at end-of-use, and therefore
also created a takeback system. PUMA partnered with I:Co, and developed
an instore collection system. This enables consumers to deposit any Incycle
sneakers (along with other unwanted apparel) that are no longer required
into collection banks. Clothes and footwear is then sorted, and compostable
sneakers sent for industrial composting.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 18


RESEARCH FINDINGS
Product data from 2012 on air emissions, global warming potential, water
consumption and waste generation impacts were used to inform this
analysis. Based on these indicators and the assumption that all of the Cradle
to Cradle Certified Incycle Basket are composted at end-of-use, the PUMA
Incycle Basket has an 87% smaller impact on human well-being at end-of-
use than the conventional sneaker, reduced from 21 US¢ to 3 US¢ (see
Figure 6). The most significant of all indicators is the global warming
potential (GWP) associated with green houses gases emitted during the
manufacture of both footwear. All impacts are greater for the non-certified
conventional footwear than for the certified Incycle Basket.

FIGURE 6: COST TO HUMAN WELL-BEING ASSOCIATED WITH END-


OF-USE

16
Cost to human well-being (US¢)

14
12
10
8
Cradle to Cradle Non Certified
6
…principles   Certified Incycle
4
helped PUMA
2
investigate and
0
innovate at both GWP Water Air Waste
a macro and Emissions
micro level. We
developed a Figure 7 shows the different impacts of the various end-of-use pathways for
a pair of sneakers. It shows that composting Incycle footwear not only
global recycling
reduces negative impacts, but actually generates positive impacts, for
solution with example, by displacing virgin raw material from fertilizer production, which
I:Co at the will be the final function of the composted footwear.

macro level and FIGURE 7: COST TO HUMAN WELL-BEING ASSOCIATED WITH END-
worked with OF-USE PATHWAYS
suppliers to
40.0
improve VOCs
Benefit to human well-being  (US  ȼ)

35.0
chemistry at the 30.0 Sulphur
micro level." 25.0 Dioxide
20.0 Nitrogen
Justin 15.0 Oxides
DeKoszmovszky, 10.0 Ammonia
Global strategy 5.0
Particulates
manager 0.0
-5.0 Carbon
-10.0 Monoxide
GWP

Water

As the Incycle Basket sneaker was only launched in spring 2013, data on
collection rates are not yet available, so the success of in-store collection
banks cannot be determined. Figure 8 presents a scenario analysis based on

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 19


RESEARCH FINDINGS
different success rates of collection at end-of-use and varying percentages of
composting. The scenarios given presume a 0, 25, 50, 75 and 100%
collection of sold Incycle Basket footwear at end-of-use. The remaining
proportion of footwear is presumed to be collected or disposed of in the same
proportions as is currently achieved in Germany.

FIGURE 8: IMPACT ON HUMAN WELL-BEING ASSOCIATED WITH


DIFFERING PERCENTAGE COLLECTION SCENARIOS AT END-OF-USE

140.00
Benefit to human well-being

120.00
100.00
80.00
60.00
(US  ȼ)

40.00
20.00
0.00
-20.00 0% 25% 50% 75% 100%

Composting Landfill Incineration Incineration w/energy recovery Direct Re-Use

A potential increased environmental net benefit of US$1.14 per pair of shoes


is seen if 100% of footwear is recovered and composted (the bar on the
right). Negative  values  are  associated  with  ‘good’  impacts  to  human  well-
being – rather than a reduction of the negative detrimental impacts typically
associated with many types of sustainability improvement. This is in line with
eco-effective products, creating positive impact in line with Cradle to Cradle
Certified principles.

By maintaining product quality, products are retained as nutrients in either


reuse or composting cycles, and losses from the cycle are minimized.
Through the innovative design of the Incycle Basket, PUMA has helped
advance the sector transition towards a circular economy, while the
conventional sneaker is designed for linear systems only. Once the economy
has advanced further towards a circular economy, potential value of
compostable products is likely to be maximized.

RENEWABLE ENERGY AND CARBON MANAGEMENT


Cradle to Cradle envisions a future in which industry and commerce
positively impact the energy supply, ecosystem balance, and community.
This is a future powered by current solar income and built on circular
material flows. The renewable energy and carbon management category is a
combination of these core principles of Cradle to Cradle design. The category
requirements at each level of certification build towards the expectation of
carbon neutrality and powering all operations with 100% renewable energy.
Renewable energy provides a myriad of environmental and social benefits,
including avoided air pollution and climate change impacts, alongside
decreased dependency on finite fossil fuel resources. It also provides
business benefits from reduced risk exposure to volatile energy prices and
intensifying  ‘polluter  pays’  regulatory  costs.

PUMA does not manufacture its own products, so the certification


requirements apply to its tier one suppliers. The manufacturing sites for each

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 20


RESEARCH FINDINGS
product have yet to start switching to renewable energy sources. However,
PUMA has worked with its Incycle Basket manufacturer to develop a plan to
improve energy efficiency at the site.

The energy consumption per pair of shoes for both products was quantified.
The Incycle sneaker uses 48.4% less energy per pair of sneakers at the final
point of manufacture, with a 56.2% lower impact on human well-being
associated with GHG emissions (Figure 9).

FIGURE 9: ENERGY INTENSITY PER PAIR OF PUMA SHOES, 2012

3.00 14.00

Cost to human well-being  (US  ȼ)


Energy consumption (kWh)

2.50 12.00

10.00
2.00
8.00
1.50
6.00
1.00
4.00
0.50 2.00

0.00 0.00
Baseline Cradle to Cradle Certified

Energy per pair (kWh) GHG environmental cost (US cents)

Manufacture of the Incycle Basket sneakers takes place in Vietnam, and


based on average electricity prices in the country5, a cost saving of US$ 269
per 1,000 pairs of sneakers is estimated. This is compared to the energy
required to manufacture the conventional sneakers in China.
Through increased energy efficiency of production, PUMA are moving towards
healthier manufacturing processes and improving impact on human well-
being.

WATER STEWARDSHIP
Processes are designed to regard water as a precious resource for all living
things. At each level, progress is made towards cleaning up effluent and
process-water to drinking water standards.

Water conservation and protection provide vital social and environmental


benefits including sustenance and climate regulation, as well as underpinning
essential business inputs.

As with energy, water stewardship focuses on the point of final manufacture


rather than at PUMA sites. The tier one supplier has worked with PUMA and
water management experts on projects to go beyond full compliance with
water regulations and ensure improved water efficiency. The Incycle Basket
was awarded SILVER for this category, meaning it has adopted water
stewardship principles, and in the case of PUMA, passed these down to its
tier one supplier.

5
Global Water Intelligence (2013) Water Tariff Survey 2012

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 21


RESEARCH FINDINGS
FIGURE 10: OPERATIONAL WATER CONSUMPTION AND IMPACT ON
HUMAN WELL-BEING

45.00 3.50

Cost to human well-being  (US  ȼ)


40.00

Water consumption (Litres)


3.00
35.00
2.50
30.00
25.00 2.00

20.00 1.50
15.00
1.00
10.00
0.50
5.00
0.00 0.00
Baseline Cradle to Cradle Certified

Water per pair (Litres) Impact on human well-being (US cents)

Production of Incycle Basket shoes consumes 21 liters of water per pair at


the tier one supplier, 51% less than conventional sneakers. Tier one
operations are a focus of the Cradle to Cradle Certified Product Standard.
However more significant water savings have been seen further down the
supply chain, particularly in tiers three and four which includes raw material
suppliers, expanding the benefit of optimization beyond the manufacturing
site.

Manufacture of the Incycle Basket is outsourced to Vietnam, and based on


average water prices in the country in 20126, a cost saving of US$ 7.94 per
1,000 pairs of sneakers is estimated.

The valuation of water reflects its scarcity in the region where it is sourced.
Due to greater scarcity in China where the conventional sneakers are
produced, compared to Vietnam where Incycle shoes are produced, there is a
significant difference in the value of water consumed within each product.
The impact of Incycle Basket sneakers is nearly 97% lower than conventional
shoes, based on valuation applied for the water consumed in the region,
determined through the water availability and source in the region (see
Technical Report for the full methodology of valuation application).

SOCIAL FAIRNESS
Company operations are designed to celebrate all people and natural
systems and progress is made towards having a wholly beneficial impact on
people and the planet.

Adhering to robust social fairness principles helps companies to provide


healthy and safe working environments for employees and suppliers thereby
maintaining a happy workforce, reducing sick days and improving
performance. The Cradle to Cradle Certified Products Program inspires a best
practice approach to social fairness that goes beyond simply avoiding human

6
Based on 2011 business energy tariff, from the Electricity Regulatory Authority of Vietnam
(2014)
[Link]
/vi-VN/[Link]

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 22


RESEARCH FINDINGS
rights violations to supporting employees and suppliers in their everyday
working and personal environments.

The Incycle Basket meets SILVER requirements for social fairness. PUMA’s  
social responsibility principles are publicly available, and a dedicated section
is provided within its Sustainability Report.

PUMA did not require any optimization in the social fairness category for
certification, since it already regularly audits all tier 1 suppliers and works
with them to improve performance.

PUMA has a strict code of conduct and several manuals of standards, such as
health and safety and social standards, which direct suppliers are required to
meet at their factories. Factories are regularly monitored for adherence to
these social standards, a program that is accredited by the Fair Labor
Association (FLA). As such, suppliers of both conventional and Incycle
footwear conform to the principles of the FLA to the best of PUMA’s
knowledge.

Additional programs are also undertaken, such as the Better Wage Program.
The aim of this is to implement sustainably fairer wage structures in selected
suppliers by 2015.

The social policies and programs at PUMA are not product specific, so there is
no variation between the comparison products. Further analysis may be
possible in future years as data on Incycle products, which were only recently
launched, are generated.

Social fairness includes many qualitative trends and quantification is not


appropriate for many of the benefits recognized through Cradle to Cradle
Certified product certification. Monetization is applied to social costs of
natural capital impacts, but not currently applied to social capital impacts,
and future opportunity could exist in incorporating this for a single metric
approach to quantification of certification impact.

MATERIAL HEALTH
Product ingredients are inventoried throughout the supply chain and
evaluated for impact on human and environmental health according to the
Material Health Assessment Methodology for the Cradle to Cradle Certified
Product Standard7. The criteria at each level build towards the expectation of
eliminating all toxic and unidentified chemicals and becoming nutrients for a
safe, continuous cycle
Toxic product materials contribute to irreversible environmental costs such as
biodiversity loss and human health damage including cancer, endocrine or
hormonal disturbances and respiratory diseases. They may also inhibit
opportunities to recycle product materials at the end of their typical use
leading to toxic waste costs to our land, oceans and biodiversity.
Permanently removing toxic materials from products means safer materials
for nature, human well-being and future product manufacturing.

The material health  quality  category  gives  a  material  health  ‘rating’  to  each  
material in the product, based upon robust analysis of toxicity including
consideration of both the hazard and the risk associated with their relative
routes of exposure during the intended (and likely unintended) use and end-
of-use product phases. Other material specific factors are also included such
as recyclability or biodegradability. A description of these ratings is given in
table 2.

7
[Link]
ology_121112.pdf

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 23


RESEARCH FINDINGS
TABLE 2: MATERIAL HEALTH RATING DESCRIPTION
Material
assessment Explanation
ratings

A (Green) The material is ideal from a Cradle to Cradle perspective for


the product in question.

B (Green) The material largely supports Cradle to Cradle objectives


for the product.

C (Yellow) Moderately problematic properties of the material in terms


of quality from a Cradle to Cradle perspective are traced
back to the ingredient. The material is still acceptable for
use.

X (Red) Highly problematic properties of the material in terms of


quality from a Cradle to Cradle perspective are traced back
to the ingredient. The optimization of the product requires
phasing out this ingredient or material.

Grey This material cannot be fully assessed due to either lack of


complete ingredient formulation, or lack of toxicological
information for one or more ingredients.

Banned This material contains one or more substances from the


Banned list and cannot be used in a certified product.

The PUMA Incycle sneaker was certified as SILVER level for material health,
meaning the product has been at least 95% assessed (by weight) using ABC-
X ratings. All ingredients are identified and assessed down to a level of
100ppm, though due to strict confidentiality, these are not shared publicly.
Less than  5%  of  the  product  ingredients  are  considered  grey  ‘unassessed’  
inputs,

The Incycle sneaker is fundamentally different to a conventional sneaker, not


based upon the same materials. The Accredited Assessment Body did not
conduct a material health analysis for the benchmark product as it was not
undergoing certification. As a result, material health comparison was
excluded from this product analysis.

Monetization of the material health assessment offers opportunity for greater


understanding of the impact on human well-being, but requires more
granular data and further development of an appropriate methodology that is
reflective of Cradle to Cradle principles. An LCA approach is not sufficient due
to  less  focus  on  toxicity  within  LCA’s  than  in  a  Cradle  to Cradle context. Even
when considering valuation, which brings in a localized relevance (a criticism
of LCA for Cradle to Cradle purposes), further work is required to ensure all
Cradle to Cradle aspects are captured.

BUSINESS IMPACTS
Business impacts were assessed by the pilot study to provide important
economic context to the research findings.

PUMA is working towards a more just and sustainable future, accelerating


positive change in the industry and the world. Cradle to Cradle Certification
has helped  as  the  scheme  is  aligned  with  PUMA’s  sustainability  thinking.  The
certification scheme has brought particular focus to the end-of-use product

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 24


RESEARCH FINDINGS
phase, helping PUMA encourage consumers to consider recycling when items
of clothing are no longer required.

Due to the recent product launch, a full year of sales data was not yet
available for comparison. However, PUMA has anecdotal evidence that sales
of the Incycle range is comparable with that of other new product launches.
This suggests that the target market of customers is open to innovative new
products.

PUMA has received a positive response to the Incycle product range from the
media and other stakeholders. Several clothing and wider media bodies such
as Ecouterre and Greenbiz. It has helped enhance PUMA’s  reputation  as  a
sustainability leader by showing how the company is developing solutions to
the problem of clothes and shoes going to landfill.

A further benefit of the Cradle to Cradle Certified product certification process


was that it brought different departments across PUMA together in a holistic,
‘joined  up  thinking’  approach to product development. This included
designers, buyers, sustainability experts and senior management, creating a
more efficient interdisciplinary team with knowledge across all aspects of
product and company requirements.

“The role of sustainability in the company needs to be more of an


internalization role, getting the people within the company to understand the
strategy  and  goals  better.  It’s  identifying  what  makes  sense  for  the  company  
and then driving that approach throughout the entire process rather than
making it merely a project” Justin DeKoszmovszky, Global strategy manager

The PUMA Cradle to Cradle Certified Incycle Basket is manufactured in


Vietnam, and shows water and energy savings compared to the conventional
sneaker. Based on the average electricity prices8 and water prices9 in
Vietnam, a total cost saving of US$ 277 per 1000 pairs of sneakers is
estimated.

NET BENEFIT TO HUMAN WELL-BEING


Combined valuation of impact on human well-being was quantified by
aggregating the total impacts for each stage of the product cycle. The Incycle
Basket is associated with lower impacts across all indicators, apart from
emissions to air which are higher for the supply chain phase. The combined
valuation of impacts is US$4.93 per pair of sneakers for the conventional
footwear, and US$3.70 for the Cradle to Cradle Certified Incycle Basket
sneaker, a reduction of 25%.

The net benefit calculation captures monetization of three of the quality


categories – material reutilization, water stewardship and renewable energy
and carbon management. Further benefit may be identified if future research
incorporates appropriate monetization of material health and social fairness
also.

8
Based on 2011 business energy tariff, from the Electricity Regulatory Authority of Vietnam
(2014)
[Link]
/vi-VN/[Link]
9
Global Water Intelligence (2013) Water Tariff Survey 2012

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 25


RESEARCH FINDINGS
FIGURE 11: COMPARATIVE COST TO HUMAN WELL-BEING OF
BASELINE AND CRADLE TO CRADLE CERTIFIED SNEAKERS

6.0

Cost to human well-being (US $)


5.0

4.0

3.0

2.0

1.0

0.0
Baseline Cradle to Cradle Certified

GWP Water Air Emissions Waste

When considered with land use included also (inconsistent with other product
analyses for this study, but included in the original PUMA EP&L), the net
benefit is even greater, at $5.55 for the conventional, and $3.81 for the
Cradle to Cradle Certified Incycle, a difference of 31%.

The valuation of natural capital is currently not recognized in the market,


however, increased resource demand and growing pressure on natural
capital may lead to future internalization of these costs. Natural capital
dependency has been linked to corporate risk, with the value of nature
becoming increasingly visible as environmental events impact resource
availability and lead directly to lower profitability (see the 2012 TEEB report
for examples).

Companies’ business performance will be negatively affected should


legislation, taxes, or other factors result in payment of these external costs.
Through the optimization steps taken by PUMA, and reduced impact on
human well-being, PUMA is considered to benefit from reduced risk through
improved environmental and social performance lowering dependency on
natural capital.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 26


CONCLUSIONS
Cradle to Cradle Certification is aligned with PUMA’s  sustainability  vision and
helps enhance the company’s position as a leader on environmental and
social issues. Achieving certification for its Incycle range of sportswear
endorses PUMA’s  efforts  to  find  new ways of tackling the important issue of
clothes and shoes going to landfill. Operational benefits have been brought
about by the holistic approach to product development.

The Pilot Study determined that the PUMA Cradle to Cradle Certified Incycle
Basket sneaker has a combined impact on human well-being that is 25%
lower than that of the conventional footwear.

The certified product was determined to use 48.4% less energy per pair of
sneakers, and a 56.2% lower impact on human well-being associated with
the GHG emissions.

Production of the Incycle Basket consumes 51% less water than the
conventional shoe at the tier one supplier, with further water savings down
the supply chain. If composted at end-of-use, the PUMA Incycle Basket has
an 87% smaller impact at end-of-use than conventional sneakers.

Incycle sneakers achieved certification in 2013, so it is not yet possible to


“Mother  nature   assess the effect of the label on sales. However, initial indications are that
has been sales are comparable to those of conventional items, suggesting the
perfecting her innovative new product has a strong base on which to build.

system for Substantial positive press coverage has been seen for the Incycle range.
Currently, the range covers only a small proportion of all products sold by
millennia, of PUMA, but the company is developing further certified products for launch.
course we should "What’s  different  about  Cradle  to  Cradle  is  that  the  principles  helped  PUMA
copy  that!” investigate and innovate at both a macro and micro level. We developed a
global recycling solution with I:Co at the macro level and worked with
Justin suppliers to improve chemistry at the micro level." Justin DeKoszmovszky,
DeKoszmovszky, Global Strategy Manager
Global strategy Not content with simply making its products recyclable/biodegradable, PUMA
manager
were concerned that consumers may not dispose of its Incycle products in
the most effective manner. Facilities for composting vary depending on
location, so a significant volume of textiles end up in landfill.

To ensure these valuable resources are recovered, PUMA provides collection


banks in many of its stores. This means items can be collected and sorted for
processing in the best way. Incycle sneakers are biodegradable, so they are
sent to industrial composting facilities where they take some six months to
break down, creating nutrients to feed new crops and plants.

“Cradle to Cradle helped us look at how we are closing the loop, and at
material flow. One great example of that is that with InCycle, we also
launched our Bring-Me-Back program, in partnership with I:Co, for collecting
used shoes, clothing and accessories in our PUMA stores worldwide that are
ready for a next life.” Justin DeKoszmovszky, Global Strategy Manager
Through maintaining nutrient quality, and assisting recovery of nutrients
through in store take back, PUMA are advancing the sector towards a circular
economy and away from the conventional linear systems. Nutrient loss is
minimized and this in turn can offer sector benefit to business, society and
the environment.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 27


CONCLUSIONS
PUMA has highlighted the importance of ‘remaking the way we make things’.
Traditional approaches have focused on how to use waste products. PUMA
has focused on designing for end-of-use – ensuring that products are created
in a manner which does not inhibit further use, such as ensuring no materials
are used that would contaminate composting or recycling streams.

“Cradle to Cradle speaks to me personally, professionally and from a brand


mission  perspective.  Cradle  to  Cradle  helps  you  think  more  systemically;;  it’s  
“Mother  nature   that aspect of closing the loop and focusing on the bigger picture that is
has been differentiating from material-specific certifications. Modelling industrial
perfecting her systems on natural systems resonates powerfully for me. Mother nature has
been perfecting her system for millennia, of course we should copy that!
system for Justin DeKoszmovszky, Global strategy manager
millennia, of
course we should
copy  that!”

Justin
DeKoszmovszky,
Global strategy
manager

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 28


ASSUMPTIONS
ASSUMPTIONS AND DATA GAPS
Data reviewed was gathered from suppliers across tier one of the supply
chain. However the results rely significantly on estimation techniques such as
environmentally extended input-output (EIO) modelling and sourcing location
information limited to the country level. Increasing the level of primary data
would reduce the uncertainties surrounding analysis.

As Incycle shoes were introduced as certified, no material health analysis


could be carried out for the baseline product. Net benefit of toxicity could not
be determined without significant in-depth analysis of the individual chemical
composition of the conventional sneaker. This was not possible within the
boundaries of this research.

Only use and end-of-use in Germany was considered as this was the initial
point of launch for the I:Co takeback scheme which provided collection
infrastructure. This is being rolled out to other countries. Composting rates
are likely to be low for countries without industrial composting infrastructure
available.

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 29


CONFIDENTIALITY & COPYRIGHT
CONFIDENTIALITY & COPYRIGHT

The information used to compile this report has been collected from a
number of sources in the public domain, research participants and from
Trucost’s  licensors.  Some  of  its  content  may  be  proprietary  and  belong  to  
Trucost or its licensors. The report may be shared and Trucost encourages
circulation of the document and findings, on the understanding that the
original source is acknowledged and referenced where used in documents or
other reporting materials.

While every care has been taken by Trucost in compiling this report, Trucost
accepts no liability whatsoever for any loss (including without limitation
direct or indirect loss and any loss of profit, data, or economic loss)
occasioned to any person nor for any damage, cost, claim or expense arising
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VALIDITY OF INFORMATION

Trucost has made every effort to ensure that all statements and information
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© TRUCOST 2014

CRADLE TO CRADLE CERTIFIED PILOT STUDY: PUMA CASE ANALYSIS 30

Common questions

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Adopting the Cradle to Cradle Certified Products Program offers several economic benefits as evidenced by the PUMA case study. Companies can achieve higher sales performance and profit margins due to the product's innovation and marketing advantages. Additionally, certification can lead to significant cost savings through improved water and energy efficiencies. These efficiencies are illustrated by the Incycle Basket sneaker's reduced energy and water consumption during production. Furthermore, adopting sustainable practices is likely to enhance brand reputation and open up new market opportunities .

The Cradle to Cradle certification influenced PUMA's Incycle Basket sneaker by guiding its design for end-of-use composting and ensuring a closed-loop product lifecycle. PUMA implemented a takeback system in partnership with I:Co to collect used products for industrial composting, thereby reducing environmental impacts and promoting material reutilization. The sneaker uses 48.4% less energy and 51% less water during its manufacture compared to conventional sneakers, significantly lowering its environmental footprint .

PUMA faced challenges ensuring consumers disposed of Incycle products effectively due to varying local facilities for composting, which risked textiles ending up in landfills. To overcome this, PUMA implemented a takeback system with I:Co, which involved setting up collection banks in stores to facilitate proper sorting and composting of biodegradable sneakers. This strategy helped maintain nutrient cycles and advance the sector towards a circular economy .

PUMA's involvement in the Cradle to Cradle Certified Products Program has significantly influenced its corporate sustainability strategy by embedding circular economy principles into product design and lifecycle management. The program led PUMA to establish a takeback system for collecting and composting products, reducing reliance on non-renewable resources, and lowering environmental impacts. PUMA's efforts to maintain and improve chemistry, water use, and energy efficiency reflect a strategic pivot towards comprehensive environmental stewardship and resource management, aligning business goals with sustainable practices .

Integrating social fairness as a category in the Cradle to Cradle Certified Products Program is significant as it ensures that product manufacturing processes are not only environmentally sustainable but also ethically sound. This category addresses labor practices, community impact, and human rights, promoting equity and accountability across supply chains. It underscores the program's commitment to comprehensive sustainability, recognizing that social equity is as critical as environmental health. By ensuring products support fair labor practices, the program can improve community well-being and enhance societal resilience, aligning economic goals with ethical responsibilities .

The Cradle to Cradle Certified Products Program addresses global warming potential (GWP) by promoting the use of renewable energy and efficient carbon management in the production processes. Certification criteria aim for carbon neutrality, encouraging companies to minimize GHG emissions through renewable energy use and energy efficiency improvements. In the PUMA case, the Incycle Basket sneaker demonstrated a 56.2% lower impact on GWP compared to non-certified footwear, illustrating how the program effectively reduces environmental impact by focusing on energy use and carbon emissions .

The Cradle to Cradle Certified Product Standard assesses products in five quality categories: material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness. Each category contributes to sustainable product design by ensuring products are safe to use (material health), designed for continuous cycling through beneficial paths like reuse or industrial composting (material reutilization), reduce dependency on non-renewable energy sources and aim for carbon neutrality (renewable energy and carbon management), manage water responsibly (water stewardship), and act ethically in their human rights and community impact (social fairness).

In the Cradle to Cradle framework, capital is regarded as a key resource encompassing not only economic capital but also environmental and social capital. This triad aims to achieve the overarching sustainability goals of creating systems where products contribute positively to the environment and society while providing economic returns. The concept stresses regenerative resource cycles, ethical material sourcing, and equitable social practices, drawing from financial investments to support environmentally sound business models and social equity .

The Cradle to Cradle Certified Products Program significantly facilitates the transition towards a circular economy by creating a framework for designing products that are safe, recyclable, and sustainable. It emphasizes the use of non-toxic materials and renewable energy, optimizing water use, and contributing to material reutilization and social fairness. By enabling products to re-enter the economy as nutrients or through reuse cycles, the program reduces waste and resource depletion. The PUMA case study, with its takeback and composting initiatives, exemplifies the program's role in shifting industries from linear to circular systems, enhancing both environmental and economic sustainability .

The Cradle to Cradle Products Innovation Institute employs several strategies to ensure continuous improvement and adaptability of its certification standards. It involves expert advisory groups in the revision process and public comment periods to integrate the latest research, data, and technologies. The standards are regularly updated, as seen with the development from version 2.1.1 to 3.0, to reflect advancements in sustainability practices and scientific understanding .

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