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Puma Offers Financial Incentives to Improve Suppliers’ Environmental Management

PumaSports company Puma and European bank BNP Paribas have teamed up to offer a supplier financing program to Puma suppliers that improve their environmental, health and safety and social performance.

Supply chain financing allows a large corporation to provide attractive financing options to its suppliers, which benefit from the corporation’s credit rating.

Under the new program — developed by Puma, BNP Paribas, International Finance Corporation, which is a member of the World Bank Group, and GT Nexus — the rate at which the bank discounts the suppliers’ invoices depends not only on Puma’s credit standing but also on Puma’s supplier rating. This supplier rating is applied after Puma has monitored the supplier’s adherence to its social and environmental standards through an auditing process.

Puma, which works with more than 300 external manufacturing partners, located primarily in Asia, said its purpose in offering supplier financing is to raise the bar for its suppliers’ social and environmental standards.

“This is the first program in our industry, which takes into consideration a supplier’s score in Puma’s environmental and sustainability rating as a bonus or malus on related fees,” said Puma COO Lars Sørensen in a statement. “Thus our suppliers’ investments in sustainability are rewarded, which is an additional incentive for them to improve their environmental and social standards.”

Puma’s supplier financing program is the latest example of a major corporation focusing on the sustainability of its supply chain.

Last month fellow sports giant Nike partnered with Apollo Global Management and said that the private equity firm will create a new apparel supply chain company that will “embedding sustainability and transparency into the business” and “revolutionize apparel manufacturing in the Americas.”

Earlier this year Nike, in an effort to reduce the carbon footprint of its global supply chain, said its expanded European Logistics Campus in Belgium would include several sustainability features including using 100 percent renewable energy, recycling 95 percent of the onsite waste, and optimizing transportation routes to reduce emissions by 30 percent.


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One thought on “Puma Offers Financial Incentives to Improve Suppliers’ Environmental Management

  1. This is really great initiative by PUMA towards global environmental challenge. The supply chain is one of the week and concern area where environmental risks are not properly addressed and improved. I wish all corporates having multinational business take a conscious decision like PUMA and serve to the planet meeting sustainability goals.

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