I WILL REUSE. GO GREEN
CONTENTS. 6 Letter from the President
12 Product Development
18 Waste Reduction
24 Green Building
Letter from the President. Under Armour’s success as a company is tied directly
set of challenges and opportunities. As we continue to
to our culture of innovation. For over a decade, we’ve
raise the bar on our approach, we see new opportunities.
provided the world with technically advanced products
The three that stand out as I reflect on our progress are:
engineered with our superior fabric construction, exclusive moisture transport, and proven innovation. Every Under Armour product is doing something for you: It’s making you better. Today we believe that sustainable innovation that benefits the athlete, the company and the planet will play a key role in the future of our business. This principle shapes how Under Armour does business.
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PRODUCT DEVELOPMENT. At Under Armour, everything we do begins with the athlete. We know that climate-related issues, like pollution and extreme weather conditions, impact an athlete’s ability to perform and the changing environment presents a unique set of innovation challenges. Similarly, as a business with diverse global operations, Under Armour’s
The results that we see continue to motivate us. We are
supply chain is exposed to a range of changing risk
pushing the boundaries to decouple our growth from
factors. This means that our products, as well as how and
constrained resources in order to leave the lightest
where they are made, are fundamental considerations
possible footprint ever , while driving uncompromising
in the long term success of our business. Under
performance for athletes everywhere. We are constantly
Armour’s approach to meta-trend analysis, future casting
integrating more sustainable ways of working across
and innovating for long-term growth, will help drive
our business – from design to production, to logistics
performance in the short term, while also positioning
and retail. While this work propels us forward we also
us to continue to turn risks into innovation opportunities
recognize that Under Armour is positioned to leverage
over the long term. The Catalyst line of Under Armour
the power of our brand to drive positive change across
Green products helps to keep an estimated 2,000,000
our entire value chain, within our industry and beyond.
plastic bottles out of the landfills, since each Catalyst
Under Armour stands by its mission to make all athletes
item makes use of up to four plastic bottles. Under
better throughpassion, design and the relentless pursuit
Armour is also exploring how to green every aspect of
of innovation. Since 1996, Under Armour’s sustainability
the company’s operations, from the manufacturing to the
journey has been dynamic, marked by an ever evolving
dyes to the packaging.
REDUCING WASTE.
Big Belly Solar and Habitat for Humanity. Big Belly
Sustainability and business growth are complementary.
is the City of Baltimore’s effort to reduce waste collection
Our strategy to create value while pursuing innovation
costs by installing solar powered trash compactors.
that reduces our impact on the environment is delivering
Habitat for Humanity has built two UA Habitat homes
measurable results. For example, the natural assumption
in West Baltimore that feature some of the newest and
is that as revenue goes up so does a company’s
best green innovations in the building industry.
greenhouse gas emissions as more sales translates to increased product manufacturing and freight activity. However through a variety of initiatives we have been able to change the results of that equation, reducing absolute greenhouse gas emissions by close to 3 percent while simultaneously increasing revenues by 26 percent over the time period covered by this report. This motivates us to push even harder for sustainable innovation across the business.
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GREEN BUILDING. Years ago we identified that nearly 60 percent of the environmental impact of a pair of Under Armour shoes was in materials used to make it. That insight, along with our commitment to design with purpose, has helped sharpen our focus on the need for disruptive innovation in the world of materials. Arguably, the last major breakthrough in materials that reshaped the industry at scale was the introduction of polyester about 50
Under Armour is purchasing wind power for every kWh
years ago. We believe there are significant innovation
of electricity they use, building stores to their Green
opportunities ahead and are working to unlock the
Standard with energy efficiency and recycled materials
barriers to developing and scaling a new palette of more
a priority, and monitoring their waste and supply chain
sustainable materials. Along with creating a recycling
for areas of improvement. Each step they take is one that
program that reuses the shoes to create a wide variety
lessens their overall environmental footprint and creates
of products. These product range from playground
lasting sustainability for the future of the company. They
surfaces to indoor flooring to zipper pulls to help reduce
also support two organizations’ environmental efforts,
our carbon footprint.
With all the technology Under Armour employs, you might think the company has a lock on new, innovative ideas. However, we know that great ideas can come from many places, including the customers who have experience wearing Under Armour’s items. Under Armour now features an idea submission tool, called My39, which allows people from anywhere to send in their ideas for better technologies, products, and improvements. It’s another way Under Armour shows that we always seeking to improve and enhance our products, in order to better serve the athletes who wear them and the planet that supports them. Our vision is to build green technology into the best performance gear in the world. We’ll get there with science, passion and innovation and we’ll never sacrifice performance, committing to help create a better environment while maintaining their high quality standards.
Kevin A. Plank Chairman of the Board of Directors & Chief Executive Officer
MAKE ALL ATHLETES BETTER THROUGH PASSION DESIGN AND THE RELENTLESS PURSUIT OF INNOVATION.
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I WILL REDUCE. GO GREEN
Product Development. Today, our UA Green products are made from recycled
the gear very soft yet extremely durable. Plus, the
plastic bottles. Products made from recycled materials
whole process ensures these items of performance
reduce waste to landfills and reduce the need for raw
apparel have a very small impact on the environment.
materials derived from fossil fuels. In 2015, we estimate
Other important Under Armour technologies are also
that we will convert over 2,000,000 one liter plastic
incorporated into the Catalyst items: from their Moisture
bottles into performance products.
Transport System that takes sweat away from the body, to the Anti-Odor technology that prohibits microbe
Our UA Catalyst collection features men’s and women’s
growth, to UPF sun protection of 30+ to 50+ for the
caps and t-shirts, and men’s shorts. Is made from recycled
t-shirts. All of the items are very lightweight so they
plastic bottles, blurs the line between science and nature.
won’t weigh down your workout.
But it wasn’t made in a lab. It was born on the field. Which means it’s seriously lightweight, designed to respond to
In development today, is the creation of a revolutionary
quick moves, and engineered to increase stamina, even
footwear manufacturing method that enables designers
during your most intense cross training sessions. It has
to precisely micro-engineer every stitch to create
a slick, almost-shiny exterior that dries fast. And it’s also
a featherweight, formfitting and virtually seamless upper,
got 50+ UPF sun protection, so you can stay outside
while reducing manufacturing waste and the mount
longer. Sure, it feels soft. But it performs tough, wicking
of materials used. The technology applies more than
away sweat to keep you cooler. In fact, it’s our fastest
40 years of knowledge from working with runners to
drying athletic T-shirt ever. Look to UA to give you green
inform the precise placement of support, flexibility and
performance that will leave your competition seeing red.
breathability where athletes need them most. Under Amour hopes that this new technology will help to
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The Catalyst items are made of fabric created with
reduce waste by 2,000,000 pounds or a whole lot of
Under Armour’s green technology. The company takes
plastic water bottles. This technology will produce
plastic bottles and melts them down, then stretches
a shoes the is 19% lighter and have 80% less waste
the substance into very fine fibers. The fibers make
than a traditional running shoe.
PERFORMANCE FROM PLASTIC RECYCLED POLYESTER TRANSFORMS PLASTIC BOTTLES INTO SUPERIOR PERFORMANCE GEAR. SO FAR, OVER 2 BILLION BOTTLES HAVE BEEN DIVERTED FROM LANDFILLS.
= 6 RECYCLED WATER BOTTLES
1 SUPERIOR SHIRT
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PROTECT WHAT MATTERS MOST.
POLYESTER Better options include creating and using more recycled polyester. 20% of polyester used today in Under Armour apparel is recycled, which is up from 16% in 2013.
RUBBER Better options include creating new rubber formulations. Under Armour developed two new such formulations and is now used in more than 30 finished rubber compounds.
LEATHER Better options include using leather processed at facilities rated by the Leather Working Group. 100% of the leather used by Under Armour is LWG certified.
COTTON Better options include using cotton sourced from the Better Cotton Initiative and organic cotton. In 2013, we used more than 14 million pounds of organic cotton.
EVA FOAM EVA already scores very well on sustainability criteria.
SYNTHETIC LEATHER Better options include using those products that reduce or eliminate the use of solvents.
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WE HAVE WORKED HARD TO DEVELOP ENVIRONMENTALLY PREFERRED VERSIONS OF THESE COMMONLY USED MATERIALS.
Waste Reduction. Anything we or our contract manufacturers buy that
end of life. Under Armour Catalyst, introduced in 2012,
does not end up in our product represents waste and
represents a small portion of our production line today,
related resources whether it’s excess materials that result
but we believe it holds great potential in helping us
in unnecessary handling and shipping, excess corrugated
advance toward our goal of reducing waste, especially
cardboard in boxes, or shopping bags not needed with
at scale. The technology uses knit construction that
consumer purchases.
allows for a lightweight upper that reduces footwear waste. The Catalyst running shoe reduces footwear waste
Our products themselves eventually become waste, as
by 80% on average when compared to typical Under
was made clear in our foot printing effort. The disposal
Armour running footwear.
phase that is, when our products reach the end of their useful lives and are thrown away - makes up 59% of
Our progress toward our waste-related targets has
the total waste in our value chain. To help our shoes
been mixed. We are working toward 10% reductions
“play on” in the form of new products. Since then, we
in waste from finished goods manufacturing across
have collected and reground 28 million pairs into Under
Under Armour, and in shoebox weight per unit, from our
Armour Grind for use in more than 450,000 locations
2011 baseline through 2015. These targets build on the
around the world - in applications ranging from running
35% reduction we had already achieved in footwear
tracks and playgrounds to carpet backing and soles for
manufacturing waste from 2001 to 2011.
new footwear. We have made good progress toward our total
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At the same time, we are working to reduce waste by
manufacturing waste reduction target, having achieved
focusing on what goes into our products and packaging.
an 8.6% reduction in this waste from 2011 to 2013, through
We aim to design our products to limit the creation of
consultation between our field teams and contract
waste in manufacturing, rather than figuring out how to
factories on the application of our index, including data
re-purpose waste after the fact. This ultimately helps
management, identification of opportunities and setting
to reduce waste all along our value chain, including at
targets, developing action plans and implementing
WASTE RESULTS IN A LOSS OF NATURAL RESOURCES.
process changes. While overall waste has declined, the
achieved through a design overhaul that enabled the
contract factory-level diversion rates have improved.
use of less material and lighter weight corrugate
Our shoebox target will be more difficult to meet. Our
fiber. One of the primary ways we help to drive waste
boxes need to be lightweight and waste efficient, but
reductions in our supply chain is via our Under Armour
they still must retain their integrity and structure from the
Materials Sustainability Index and our footwear and
factory to the consumer. Starting in 1995, our shoebox
apparel indices. By measuring the environmental impact
has been made of 100% recycled content. Since that
of chosen materials and the waste efficiency of designs,
time, we have worked to reduce the weight of the box,
our designers can make better choices. In Under Armour
developing different alternatives with varying degrees
Brand apparel, our average pattern efficiency rates at
of success. The new Under Armour Brand box is a 3%
the end of 2013 were more than 80%. In Under Armour
weight reduction against our 2011 baseline, building
Brand footwear, this rate improved to 71% average
on a 6% savings from a previous box redesign. We are
efficiency — resulting in a nearly 13% reduction in waste
in Phase 3 of rollout and will be at full implementation
compared to 2008.
of the new box design by the end of 2015. That’s good progress but not enough to meet our 10% reduction
For manufacturing waste that we cannot yet eliminate,
target by 2015. We are exploring additional options,
what we do with it matters. We make every attempt to
including changes to the master carton — so that the
drive waste as high up the value chain as possible —
smaller and lighter shoeboxes can be shipped in a leaner
ideally back into our own product through closed-loop
outer box. Additionally, we have other shoebox initiatives
innovation. Examples include material vendor take-back
in various stages of implementation that will reduce
programs and grinding rubber outsoles back into new
overall shoebox weight.
outsoles, including testing and exploring new ways to increase the level of scrap content that can be mixed
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Under Armour launched its redesigned box in 2012,
back into new outsole rubber. The next best options
achieving a 13% reduction in average weight per box
are Under Armour Grind applications, basic recycling
compared to the previous design. This reduction was
solutions, and then energy recovery.
MADE FOR PLAYERS AND THE PLANET AFTER THE CHAMPIONSHIPS ARE WON AND THE CONFETTI HAS FALLEN, THE SHOES ARE USUALLY THROWN OUT AND FORGOTTEN. THEY DESERVE BETTER THAN THAT. SO FAR 28 MILLION PAIRS OF SHOES HAVE BEEN RECYCLED.
SEVERAL PAIRS OF SHOES
=
ONE AMAZING PLAYGROUND
Our corporate offices also produce waste, though the
Under Armour includes three types of raw materials
amount is minimal compared to that from manufacturing
made from recycled athletic shoes and manufacturing
and packaging. At our World Headquarters campus,
byproducts: rubber from the outsole, foam from the
our waste has grown 4% compared to 14% growth in our
midsole and fabric from the upper. These materials are
campus square footage since 2011. We are monitoring
ground up and used by select companies in sport and
the increased amount of waste we produce and are
playground surfaces, as well as in numerous Under
including waste assessments and reductions in our
Armour apparel, footwear and equipment products.
long term planning. Both sports and playground surfacing companies utilize We are also focusing on the diversion of waste to
Under Armour Grind to manufacture sustainable athletic
compost and recycling, away from landfill. Our WHQ
surfaces such as tennis and basketball courts, running
diversion rate in 2013 was 69% — our best on record
tracks, athletic fields and playgrounds. Additionally,
despite dropping to 57% in 2012 from previous rates
Under Armour utilizes the material in various products
above 60%. Our ability to maintain or improve these
such as footwear and apparel.
diversion rates in the future depends in part on external factors such as the efforts of our food service suppliers,
Innovation has been at the heart of Under Armour’s
and proposed regulatory changes regarding acceptable
philosophy since the start. It’s what has allowed us
materials for composting and recycling.
to create iconic, game changing products — time and again. But today, Under Armour innovation is about
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Whether it’s a worn-out shoe or manufacturing surplus,
more than product performance. It’s about focusing
Under Armour Grind is used in the design, build,
our corporate responsibility efforts in the areas which
and install of synthetic and hardwood courts, gym and
we can have the greatest impact and create the most
weight room flooring, synthetic turf fields, running tracks,
value, including the materials we design into our
playgrounds and more. In fact, surfaces containing Under
products and through the process of making those
Armour Grind can be found at every level of play.
materials and products.
THE OVERALL WASTE FOOTPRINT
1%
2%
11%
6%
9%
13%
59%
PLAN
DESIGN
MAKE
MOVE
SELL
USE
REUSE
Green Building. Our foot printing confirms that the greatest sources
CO2 emissions for our assessed footprint fell 2.8% in
of CO2 and energy use in our value chain lie outside
absolute terms (to 1.67 million tCO2) and energy use fell
our direct control, both upstream (in growing materials,
5% (to 14,924 TJ) compared to our 2011 baseline, while
raw materials manufacturing and finished goods
company revenue grew by 26% over the same period.
manufacturing) and downstream (in consumer use, including washing and drying clothes). Fortunately,
The greatest single contributor to our assessed footprint
our indexing tools provide us with means to influence
is finished goods footwear manufacturing, which
emissions and energy use in at least the key upstream
accounts for more than 57% of our assessed CO2
phases of our value chain.
emissions. From 2011 to 2013 alone, footwear manufacturing realized a per unit emissions reduction
In 2013, our targeted reductions — which include the
of 17%, and down 33% from FY08. This reduction was
aggregate of efforts in the built environment, logistics
accomplished by reducing process heat loss, improving
and footwear manufacturing — achieved a 13% CO2
energy management systems and fostering better
emissions reduction since 2011 on a per-unit basis
engagement between factories and Under Armour’s
against Under Armour Brand footwear units. That means
energy field team.
we believe we are on track to reach our CO2 reduction target. It also means we believe we are making progress
We have also seen progress in inbound transportation
toward the aim of decoupling growth from constrained
within the Under Armour Brand, with our shipping
resources, as our revenue growth from continuing
providers helping us to deliver a 29% reduction in CO2
operations has significantly outpaced the growth in
emissions in 2013 as compared to 2011. We achieved
energy use and emissions in our assessed footprint.
this in part by shipping more product by ocean than air, thus reducing fuel consumption and cost. The roll out
We also reduced both energy use and our GHG footprint
of a new, more accurate emissions-tracking system
in absolute terms when considering our assessed
also contributed about 6% of the reduction.
footprint. Through 2013, the total energy use and related
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In our Under Armour Brand retail stores, we decreased energy use per square foot by 8% from 2011 to 2013, largely due to better energy management systems. About 77% of our North America stores now have these systems, up from 70% in 2012. Overall, in our corporate headquarters facilities, energy use per square foot decreased by 16% from 2011 through 2013, largely due to system and control upgrades. We anticipate that adding several new buildings to the portfolio late in 2013 will increase energy use per square foot as building occupancy increases in future years. We continue to make progress in additional areas not factored into our target, including apparel and equipment manufacturing, where we are working hard to develop comprehensive baselines so we can track progress year over year. We are also working more closely with material vendors, to help them reduce their emissions and energy use. We advocate for progressive climate policies through ongoing work with organizations such as the Business for Innovative Climate and Energy Policy (BICEP), which was founded in 2008 together with other major brands.
YOU MUST HAVE THE PASSION, STRENGTH AND BELIEF THAT YOU CAN BECOME AND DO ANYTHING.
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29%
REDUCTION for CO2 emissions per unit in inbound and out bound transportation
50%
REDUCTION in water used in apparel materials dyeing and finishing, and in footwear manufacturing
75%
INCREASE on reducing energy use in retail stores, manufacturing plants and corporate offices
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I WILL RECYCLE. GO GREEN
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It all comes back to our vision of a closed loop business— where waste at different stages, from product manufacturing to transportation and products at the end of their life, can be recycled and reused—back into new products.
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BECOMING STRONGER INSIDE AND OUT.