Malcolm Preston, Global Leader Sustainability and Jochen Zeitz, Chairman and CEO of PUMA

The environmental P&L account

 

An Environmental P&L account is a means of placing a monetary value on the environmental impacts along the entire supply chain of a given business.

Measuring and reporting a companies’ use of natural capital and impacts on ecosystems and biodiversity is becoming increasingly important. Businesses that do this will understand the risks and opportunities better and are more likely to build resilience into their business models.

Natural capital risks have both increased in expected impact and likelihood of occurrence between just 2009 and 2011, according to the World Economic Forum, such that they now sit alongside the most significant risks to the global economy.

This is starting to drive a raft of new regulation that will impact businesses, increasing costs, but hopefully safeguard the natural assets that businesses depend on.

'Gaining a better understanding of the source of natural goods and services PUMA relies on and the declining availability of the basic resources required for our business growth will help PUMA build a more resilient and sustainable business model and ultimately better manage its impact on the environment'. - Jochen Zeitz, Chairman and CEO of PUMA.

PwC can help you understand the key environmental, social and economic issues that affect your company, quantify them, value and report on them.

Puma's ground-breaking approach to costing its use of all kinds of capital could be a catalyst for radically different reporting by companies. Alan McGill shares his insights. Learn more