Discussion Question:
PUMA, one of the world's leading sports-lifestyle companies that designs and develops footwear, apparel, and accessories, teamed up with Trucost PLC, a company that provides data, metrics, and insight, in order to measure the environmental cost of PUMA's products. PUMA developed the Environmental Profit & Loss (EP&L) analysis in order to demonstrate the greenhouse gas emissions, waste, air pollution, water use, and land use impacts of the entire value chain of a PUMA product, from raw material extraction, to production processes, and even consumer uses including washing, drying, and disposing of PUMA products. Often environmental costs and liabilities are hidden within a company's value chain and are not reflected in the price of the goods or services provided. Indeed, these costs are usually externalized to the environment, the public, or future generations. The EP&L is an analytical tool for promoting sustainability. By tallying environmental metrics into a financial indicator, the EP&L analysis provides business managers with information about resource dependency and impacts, which are easy to under-stand because they translate environmental issues into business terms.
Using PUMA's EP&L Account as a template, develop sustainability metrics for an existing consumer product of your choice. Critically evaluate the metrics that you have chosen, and give your rationale for your choice.
PUMA (2011) PUMA's Environmental Profit and Loss Account for the year ended 31 December 2010.
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