PUMA Progress Report 2017

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1 PUMA Progress Report Phase-out of PFCs As part of our commitment to Zero Discharge of Hazardous Chemicals by 2020, we have phased-out the usage of long-chain per- and polyfluorinated Chemicals (PFCS) since At the end of 2017, 99% of all PUMA products were produced PFC-free.Our PFC phase-out is driven by the PUMA material sourcing teams from all three PUMA product categories, and is realized by our materials suppliers globally in close collaboration with their chemical suppliers. For some special applications PFC-free finishes do not fulfil our product requirements for example in regard to oil repellency. That means less than one percent of our products still contain short-chain PFCs until alternative chemical products are available that can provide the required performance. We will continue our research in this field and adopt new available technologies wherever possible. 2. Disclosure / Wastewater Testing While usage of safe and clean input chemistry is the pre-condition on a road to zero discharge of hazardous chemicals, testing of wastewater provides an indication on whether any hazardous substances may have slipped through the input controls or have formed during the production process. Wastewater testing can also be used to screen the effectiveness of effluent treatment systems regarding conventional wastewater parameters such as BOD, COD, ph, etc. Therefore, together with other ZDHC brands, we have asked our key suppliers with wet processing facilities to test their wastewater for both priority chemicals and conventional parameters and share the results of these tests by uploading them on the platform of the Chinese NGO Institute of Public and Environmental Affairs (IPE). In 2017, a first round of our wastewater test campaign was launched on 1st April. We had scheduled a second test round to be completed before 31st October. The results were disclosed either on the IPE platform and uploaded to the ZDHC Gateway in the Wastewater Module. By analyzing the results from 42 factories with direct discharge, some key figures can be drawn as below. Conventional wastewater parameters: A summary of the results of the tests can be found in Chart 1. For conventional wastewater parameters, when compared to the Foundational limits of the ZDHC 2016 Wastewater Guidelines, ph test results have a 100% compliance rate, while Temperature, TSS, COD, Color, N-NH4, AOX, Oil & Grease, Phenol and Sulfide show compliance rates above 90%. The Coliform compliance rate was found to be not reliable due the long delivery time between the factories and the labs. Therefore, this parameter it is not listed in the chart.

2 Chart 1: The statistical results of conventional wastewater parameters from direct discharge factories Heavy Metals: As shown in Chart 2, for all samples the measurements show compliant results for Chromium (Cr), Copper (Co), Nickel (Ni), Silver (Ag), Arsenic (As), Cadmium (Cd), Chromium VI (Cr VI), Lead (Pb) and Mercury (Hg) compared to Foundational limits of the ZDHC Wastewater Guidelines. Checking test results against Progressive limits, full compliance can still be achieved for Chromium (Cr), Nickel (Ni), Silver (Ag) and Lead (Pb). Chart 2: The statistical results of heavy metals in wastewater MRSL Parameters: The analytical results for the MRSL parameter groups are listed in Chart 3. All priority chemicals achieve a compliance rate over 90%. Azo, Carcinogenic and Disperse Dyes, as well as Flame Retardants and Glycols are even fully compliant, which means that they were not detected in the wastewater.

3 Chart 3: Compliance rates of MRSL parameters in the wastewater To harmonize wastewater testing for both conventional parameters and MRSL substance groups, the ZDHC is currently working on a defined limit for the pollutants in sludge. PUMA supports this effort and stands ready to pilot the new guidance document once it is released. The link to our Wastewater Test Results 2017 are listed below: No. Factory Country 1 Tong Hong Beihai CN Link 2 Tong Hong VN Link 3 Hung Fu VN Link 4 Prime Aisa VN VN Link 5 Sadesa TH Link 6 PT. DAEHWA ID Link 7 Sangfang Vietnam VN Link 8 Key CN Link 9 Cosmo-Fushan CN Link 10 Taiyuan-Globletex TW Link 11 Zhanxu-ZHEN YANG CN Link 12 Tiong Liong-Sun Luen TW Link 13 Shenzhou CN Link 14 Gain Lucky VN Link 15 Formosa TW TW Link 16 Formosa VN VN Link 2017 IPE web page for the disclosed information

4 17 Square Fashions BD Link 18 Men-Chuen TW Link 19 Men-Chuen VN VN Link 20 Far Eastern TW Link 21 VN Tiong Liong VN Link 22 FU HSUN TW Link 23 DBL-Hamza BD Link 24 DBL-Thanbee BD Link 25 Viyellatex BD Link 26 Yaw Limay-Summitex TW Link 27 CHIN HSIN VN VN Link 28 Tai Hing CN Link 29 Prime Aisa-Yu Xiang CN Link 30 Formosa CS CN Link 31 Formosa ZS CN Link 32 Kuo Yuen CN Link 33 Weitai VN Link 34 HYUNDAE VN Link 35 YEE CHAIN-YUNG DA TW Link 36 Top Star-Jingying CN Link 37 Fakhruddin BD Link 38 Sue's-CONG TY VN Link 39 De Licacy TW Link 40 SLN TK Link 41 Paxar CN Link 42 LEI FENG-Fulong CN Link Conventional wastewater parameters: A short summary of the results of the tests can be found in Charts 1, 2, and 3 below. For conventional wastewater parameters, when compared to the Foundational limits of the ZDHC 2016 Wastewater Guidelines, AOX, phenol and cyanide have a 100% compliance rate, while the other parameters range between 81.8% and 95.7% compliance. Only the BOD compliance rate is barely above 70%. For the conventional parameters, only factories with direct discharge results were included in the charts. Since indirect discharge limits can be quite different depending on the requirements of the receiving treatment plant, they are not considered in the statistics.

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7 Chart 1, 2 and 3: The statistical results of conventional wastewater parameters Heavy Metals: 100% of the samples collected have non-detected results for copper, cadmium, and silver; For cobalt, nickel, zinc, arsenic, chromium VI, lead and mercury all factories comply to 100 percent with the foundational level of the ZDHC Wastewater Guideline. For the progressive level the compliance rate is 97.7 percent.

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9 Chart 4, 5, and 6: The statistical results of heavy metals in wastewater MRSL Parameter: The analytical results for the MRSL parameter groups are listed in chart 7. Carcinogenic and disperse dyes, flame retardants, glycols, and organotin compounds were 100 percent non-detected. Chlorophenol, azo dyes, PFCs, PAHs and VOCs have a non-detected rate of above 90 percent among all samples. The compliance rate for phthalates, halogenated solvents, chlorinated compounds and AP/APEOs is between 77.6 and 86.4 percent.

10 Chart 7: Compliance rates of MRSL parameters in the wastewater To harmonize wastewater testing for both conventional parameters and MRSL chemicals, the ZDHC is currently working on a defined limit for the pollutants in sludge. PUMA supports this effort and stands ready to pilot the new guidance document once it is released.