The sportswear company, Puma, has become the first company in the world to put a value on the eco services is uses in its production processes. Its first economic valuation of environmental impacts includes costs on greenhouse gas emissions, water consumption, and land usage along its entire supply chain. Additionally, Puma has promised that within four years, half its international will be produced according to its internal sustainability standard, using recycled materials, as well as ensuring its suppliers use more sustainable materials.
By costing its impact on the environment, Puma redefines its productivity in the value chain, which creates corporate shared value (CSV). This assists Puma to build a sustainable competitive advantage in the long run, which guarantees it a stable market share. Moreover, the innovative accounting system helps Puma gain a better understanding of scarce natural source, which allows the company to build a more resilient and sustainable business model and better manage its impact on the environment.
article source:http://www.theguardian.com/sustainable-business/puma-value-environmental-impact-biodiversity