Puma Expresses Concerns Over Meeting EU Sustainability Reporting Rules
Puma, the sportswear brand, has voiced its concerns faced in meeting the new European Union (EU) sustainability reporting requirements. The company's head of sustainability, Stefan Seidel, discussed these challenges at the Reuters IMPACT conference in London, highlighting the growing regulatory landscape in the EU.
Puma's concerns revolve around the EU's Corporate Sustainability Reporting Directive (CSRD), which mandates that companies analyze environmental risks, establish sustainability targets, and subject their sustainability reports to external audits. These requirements are slated to take effect for the 2024 financial year, with reports to be published in 2025.
Seidel emphasized that Puma has been reporting on sustainability for two decades but still faces difficulties in aligning with the stringent CSRD guidelines. "We are nowhere near being able to fulfill the requirements of CSRD," he remarked. "So I think it's maybe a bit over the top."
To meet these standards, Puma gathers data from its tier one and two suppliers, covering areas such as emissions, energy usage, water consumption, waste generation, and social data like employee turnover and wages.
Despite these challenges, Seidel shared a positive environmental achievement, noting that Puma had reduced its emissions by 9% from 2017 to 2022 while simultaneously doubling its business.
The introduction of the CSRD reflects the EU's commitment to promoting sustainability and transparency in corporate reporting. However, Puma's concerns highlight the complexity and resource-intensive nature of complying with these ambitious regulations.
As the CSRD implementation date approaches, many businesses in the EU will likely face similar challenges and will need to accelerate their efforts to meet the new sustainability reporting requirements.