PUMA’s environmental profit and loss account

Last week students studying Advanced Market Leader unit 4 Energy were discussing their own company's innovative environmental audit and this recent news from Puma is an interesting example of social enterprise.
 Follow the link to the website which has  extremely comprehensive information on Economics for students.
 http://economicsonline.co.uk/blog/
Posted on May 16, 2011 by George Higson

Today PUMA, the German based sportswear producer, published a detailed environmental profit and loss account (E P&L) which makes it the first global business to put value on all the resources used in production and the likely environmental impact caused.  PUMA worked with PricewaterhouseCoopers (PwC) and Trucost to develop a method to quantify the emissions it generates and the water consumed throughout its supply chain. An example is water used in the production of cotton, which in many cases is produced in areas where water is particularly scarce and the price paid for water fails to meet the true cost of water supply. PUMA are one of the first global companies to acknowledge the need to take environmental effects into account when making business decisions. The company estimates that, in 2010, the environmental cost of its supply chain was €94.4m. The UK government is shortly due to make a decision on whether large companies should be forced to publish an annual report detailing the environmental impact of their activities.
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