Project Launch: Cambodia Adam Brennan Sustainability Project Manager – PUMA.Safe Ecology 22 Jul 2013

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Objectives of this Afternoon Provide an introduction into what SAVE is and its aims Provide you a timeline of activities Provide you an indication of the required resources Introduce you to the Project Implementation Partner: ASSIST Discuss any questions you may have 3

Agenda 4

„To be the most desirable and sustainable Sportlifestyle Company in the world.“ Jochen Zeitz Our Mission Statement 5

PUMA Sustainability Scorecard

7 Project Stakeholders PUMA is one of the world’s leading sportlifestyle companies that designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting Creativity, Sustainability and Peace. DEG, a member of the KfW Bankengruppe (KfW Banking Group), promotes private enterprise in developing and transition countries as a contribution to sustainable growth and a lasting improvement in the living conditions of the local population. ASSIST is a leading international capacity building organization, promoting sustainable practices to address social problems in the developing world, with focus on Asia and Africa. Project Co-Financing/ Management Project Delivery & Advisory Project Co-Financing

Project Objectives Increase the environmental capacity at a site level Identify potential resource saving improvements Create an action plan to meet 25% targets Provide the factories technical assistance through implementation phase  By 2015, reduce your energy, water, waste and CO2 by 25% compared to 2011 baseline 8

Project Participants 9 50

Project Benefits 10

Project Benefits 11 Free distribution of Sustainability Guidelines: The Sustainability Guidelines will act as your central source of information throughout the project. This technical document will contain several chapters covering the areas of: Energy Management Air Pollution Management Water Management Waste-water Management Computer Based Training: The Computer Based Training will be an interactive learning based software containing high-level information from the Sustainability Guidelines but also case studies, videos and interactive maps all demonstrating practical solutions that can be implemented in your factory. Knowledge Sharing Forums: There will be a number of knowledge sharing forums organised at key milestones throughout the project. As the project is 3 years, it will be essential to bring together the project teams and suppliers in order to discuss progress, problems & solutions, case studies and to discuss the next stages of the project. Trainings: Trainings are an essential part of capacity building. In order for the project to be most effective several training sessions will be held for the factory's sustainability/ compliance team. These trainings will cover the areas of the Sustainability Guidelines separated over several modules. Free On-site Assessment: The on-site assessment is the cornerstone of the project. The on-site assessment will be separated into three key elements: Energy & Air Pollution, Water and Waste. Each element will be undertaken by a consultant whom is an expert in that specific area. The assessment will identify a number of measures and solutions you can implement which results in reducing your environmental impact and supports you in achieving the 25% environmental targets set out in the PUMA Sustainability Scorecard. Direct Savings for Water and Energy: By implementing the suggestions identified through the project you will be able to directly save on the costs spent on energy and water consumption. These saving will only increase in the future as the planned cost for energy and water ever increase as the earths natual resources become more scarce. Reduce Waste Production: Waste production is an ever growing problem in many developing countries as their waste management strategies cannot keep up with the rate of development. As such many Governments are now looking at measures to tackle the issue and its likely that it will involve additional waste disposal charges and taxes. By reducing your waste production you not only reduce your environmental impact but also reduce your exposure to such potential financial risks in the future. Mitigate CO 2 Emissions: Carbon dioxide is the most predominant Greenhouse Gas – the primary driver of global Climate Change. As such many Governments are now looking at measures to reduce CO2 emissions. Many developed countries have already implemented various carbon trading schemes and carbon taxes. It is just a matter of time before such measures are implemented in Asia. Through the project you can not only reduce your environmental impact but also reduce your exposure to such potential financial risks in the future. Achieve Green Recognition: Sustainability is high on the agenda of many multinational companies such as PUMA, Nike, Adidas, H&M and other apparel & footwear brands. By reducing your environmental impacts and communicating this to existing and new customers (for example through GRI Sustainability Reporting) you will increase the recognition you receive. You will also receive increased recognition at PUMA and will be classified as a “more sustainable” factory/ supplier providing you also have an A/B+ SAFE rating. This means you will be able to produce “more sustainable” products of which will form 50% of PUMAs international collection by Free Technical Assistance: Across a period of approx. 12 months technical assistance will be provided to support you during the implementation phase of the project with the consultants making a visit to your factory once every month. They can support in any questions, issues or problems you may have.

Project Activities 12

Project Timelines 13

Project Team from Puma 14

$ Project Cost The cost is USD 35,000/ factory 100% of the project cost is sponsored by PUMA and DEG 15

What is expected from you? A dedicated, stable and competent sustainability team Top management support Co-operation throughout the project  Investment for the improvement measures  Implement within a reasonable timeframe  Reach the 25% sustainability scorecard targets 16

Consulting Partner Introduction Aru David Regional Director, Mekong 22 Jul 2013

18 Project Stakeholders PUMA is one of the world’s leading sportlifestyle companies that designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting Creativity, Sustainability and Peace. DEG, a member of the KfW Bankengruppe (KfW Banking Group), promotes private enterprise in developing and transition countries as a contribution to sustainable growth and a lasting improvement in the living conditions of the local population. ASSIST is a leading international capacity building organization, promoting sustainable practices to address social problems in the developing world, with focus on Asia and Africa. Project Co-Financing/ Management Project Delivery & Advisory Project Co-Financing

About ASSIST An international, non-stock, non-profit social organization. Operates in South Asia, South East Asia, China and Africa. Focal areas are – Social Improvement & Sustainable Transformation. Our Approach We are driven by the triple C approach: Communicate – Collaborate – Capacitate Who We Are 19

Our Relevant Projects in Regions (Partial List) More projects at: ndex.php/what-we- do 20

Project Team from ASSIST 21 Management teamConsultant team

Our Methodology 22 5D H O W W E D E L I V E R T H E P R O J E C T D ISCOVER Client Understanding Project Kick-off Client Meeting Group Discussion Awareness Trainings Gap Analysis D EFINE Process Definition Brainstorming Existing Process Identification Process Mapping Process Drafting Metrics Development Technical Trainings D OCUMENT Formal Documentation Client Review Revision & Improvement Approval for Implementation D EPLOY Implementation Implementation Trainings Set-up for Roll-out Implementation Incubation Monitoring Effectiveness Check D ETERMINE Corrective Action Preventive Action Improvements Determine Lessons Learned Effectiveness Check

Critical Success Factors Management understanding and commitment Project team to be identified before training Appointed PM for each supplier Whole team attending trainings 23

SAVE Project Team 24

THANK YOU DISCUSSION SESSION 25