Piaggio seeks to minimise the environmental impact of its industrial activities by carefully defining the product planning process and the technological manufacturing cycle, and by using the best technologies and the most modern production methods.

Piaggio has organised its processes and activities through a management system which focuses on quality, the environment and the health and safety of workers, with a view to providing a model of sustainable development that not only guarantees lasting success, but which also ensures that the expectations of stakeholders are met (these include investors, shareholders, partners, suppliers, the social community and public administration).

Environmental sustainability - understood as the ability to protect and safeguard natural resources, combined with the capacity of the ecosystem to absorb the direct and indirect impacts generated by manufacturing activities - is among the key focal points of Group Policy, as expressed by the company's senior management team. This concept provides the basis for the environmental certification (ISO 14001) process that has already been launched (or is being continued) at the various production sites, and is an essential point of reference for every Group company, wherever they may operate.

Specifically, Piaggio seeks to minimise the environmental impact of its industrial activities by carefully defining the product planning process and the technological manufacturing cycle, and by using the best technologies and the most modern production methods. The pursuit of these environmental objectives serves to keep the Group on a path of continuous improvement in terms of environmental performance; this embraces the entire life cycle of the product, and is not limited exclusively to the production phase.

Quantitative data on the mitigation of the environmental impact resulting from the Group's operations are reported on in the sections below.

With these objectives in mind, initiatives and goals for the future focus on the following areas:

  • Maintaining environmental certification awarded to all production sites;
  • Reducing energy consumption;
  • Reducing emissions of CO2 and other pollutants;
  • Conserving water resources;
  • Waste handling and recovering;
  • Absence of soil contamination;
  • Biodiversity;
  • Environmental spending and investments

Reduction of energy consumption

The Group is dedicated to optimising plant management and minimising energy waste. Energy is supplied to the Group by leading energy companies whose production is at least partly derived from renewable sources. Specifically, the supplier chosen for Italy declares that around half of the energy it provides comes from renewable sources.  

Although the structure of the company's production sites has been designed to run on fossil fuels, Piaggio is engaged in optimising the management of existing sites to cut consumption. Specifically, when reconfiguring or restructuring plants, the Technology functions carry out evaluations and analysis with a view to introducing machinery and methods that minimise environmental impact.

As of 2016, a well-defined process for identifying and reducing energy waste has been underway at the Pontedera facility, thanks to the implementation of the Smart Metering system, which makes the energy consumption figures detected by the 90-plus meters at the plant, usable, observable, comparable almost in real time (with a 3 hour delay) and analysable. The value of the steps taken as part of this is clearly evident in the reductions in energy consumption observed, even in the face of increased production (the increase in consumption of diesel is negligible considering the very small quantities involved).

Changes in energy consumption at other Italian sites can be attributed to the decrease in production volumes and the improved management of heating systems, in accordance with the temperatures recorded externally.

Across the Group's Asian sites, consumption has been largely stable. However, energy consumption is slightly down, proving that even at these sites, the Group's focus on this issue remains.

Finally, in Baramati, it should be noted that in addition to having considerably reduced the consumption of diesel fuel, the factory now uses a product obtained from vegetable oils (bio-diesel), which does not contribute to the consumption of fossil resources.

Energy consumption at Piaggio Group production sites

  PontederaNoale and ScorzèMandello Del LarioBaramatiVinh PhucTotal
Electricity
(Thousand KWh)
201735,7233,96669924,72913,55878,675
201640,1094,37882725,07113,56083,945
Change 2017-2016-10.9%-9.4%-15.5%-1.4%0.0%-6.3%
201538,7624,18076725,87313,33082,912
Methane/Natural
Gas (Sm3)
20175,583,383321,669165,087  6,070,139
20166,173,722270,863153,337  6,597,922
Change 2017-2016-9.6%18.8%7.7%  -8.0%
20155,742,963309,577142,125  6,194,665
GPL1(Ton.)2017   53418552
2016   37721398
Change 2017-2016   41.6%-14.3%38.7%
2015   15820178
Diesel1(Litres)20172,516  1,629,341610,4422,242,299
20161,633  1,675,129617,0332,293,795
Change 2017-201654.1%  -2.7%-1.1%-2.2%
20151,860  2,322,563701,3903,025,813

1 Some values are based on estimates. 

Energy consumption of Piaggio Group production sites

  Electricity Methane / Natural gasLPGDiesel fuel Total
Consumption in GJ12017283,230236,79625,44781,646627,119
2016302,202257,38518,34883,521661,456
2015298,483241,6548,206110,175658,518

1The figures are calculated using conversion standards defined by the GRI guidelines (1 gallon of diesel = 0.138 GJ; 1,000 m3 of natural gas = 39.01 GJ; 1 Kwh = 0.0036 GJ). For LPG, a standard conversion factor of one kilogram of LPG = 46.1 MJ was used.

The Group also operates through commercial companies (distributors and selling agencies) and research centres located within the various reference markets. It is not always possible to measure energy consumption at these sites, as they sometimes share communal services with other tenants within the buildings in question. Nonetheless, Piaggio strives to monitor energy consumption at non-production sites; this is estimated to be less than 600 thousand kWh/ year.

Reducing emissions of CO2 and other pollutants

Greenhouse gases (mainly CO2) and Volatile Organic Compounds (VOCs), released by solvents used in painting, are some of the most hazardous substances for air pollution generated by automotive operators.

The structural works (replacement of boilers and restructuring of distribution networks) carried out over time and already described in previous reports, show that the changes made were appropriate. Indeed, in 2017 emission levels were substantially in line with those already detected in previous years.

Direct and indirect CO2 emissions of Piaggio Group production sites

Ton PontederaNoale and ScorzèMandello Del Lario BaramatiVinh PhucTotal
2017direct 111,1526323244,3581,81518,281
indirect11,8101,31123120,3278,96342,642
2016direct 212,1015303004,4811,84119,253
indirect13,1071,43127118,4528,96642,227
Change 2017-2016direct-7.8%19.2%8.0%-2.7%-1.4%-5.0%
indirect-9.9%-8.4%-14.8%10.2%0.0%1.0%
2015direct11,2346052786,2132,05820,388
indirect12,6671,36625119,0437,68341,010

1 CO2 emissions deriving from the combustion of methane, natural gas, diesel fuel and LPG.
2 The values shown differ from those stated in the last year's Report, as these were calculated using an incorrect Internal Heating Value, as provided by the Ministry of the Environment.

The clear percentage increase in indirect emissions at the Baramati plant is due to the use of national conversion parameters, which, in 2017, were much less favourable than those provided for 2016. If the national parameters had not changed, the indirect CO2 emissions at the plant would have decreased by 1.1%.

CO2 emissions of the Piaggio Group (Equivalent Tons)

CO2 emissions of the Piaggio Group (Equivalent Tons)

For the factories located in Italy, it should be noted that for the determination of gases with a greenhouse effect resulting from the use of diesel, fuel oil and methane, the conversion criteria of the “Emission Trading” Directive (Directive 2003/87/EC) were used.

With reference to CO2 emissions, the industrial plant at Pontedera comes under the sensitivity area classification of the “Emission Trading” directive (Directive 2003/87/EC) which implements the Kyoto Protocol. The site is classed as a “Group A” site, relative to companies releasing the lowest amount of CO2 indicated in the Directive.

CO2 emissions are almost entirely due to the combustion of methane and only marginally to the combustion of diesel fuel in back-up power generators.

The monitoring and reporting of CO2 emissions from the Pontedera plant are governed by a specific Group procedure, which is periodically audited in-company and annually audited by a certification body.

A chart summarising CO2 emissions from Piaggio's plant at Pontedera for the year 2005 onwards is given below. The amounts shown have been certified by the verification body accredited by the Competent National Authority (ANC), except for the 2017 figure; for this, certification is planned for March 2018.

Direct CO2 emissions of the Pontedera site (CO2 Equivalent Tons)

Direct CO2 emissions of the Pontedera site

Other significant emissions at the production sites of the Piaggio Group1

  PontederaNoale and ScorzèMandello Del Lario BaramatiVinh PhucTotal
COV (Ton.)201746.1  433.04.4483.5
2016111.2  336.03.8451.0
Change 2017-2016-58.6%  28.9%15.8%7.2%
2015122.3  380.03.0505.3

1 Reported data are also based on processing using estimates

In 2017, the full operation of the scooter painting plant enabled the VOCs emitted to be reduced significantly (-58.6%). With regard to the other plants, evaluations are currently in progress on the use of technologies with a lower impact on air and water pollution. The increase in VOCs emitted by the Baramati plant can be attributed to the significant increase in the number of scooters produced, while that seen at the Vinh Phuc plant is not significant from a qualitative perspective, despite being notable in percentage terms.

Conserving water resources

Piaggio has always recognised the immense value of the natural resources it uses and has developed production processes designed to reduce water consumption. At Pontedera site, water supply wells have inverters that can regulate system flow rates based on the amount of water required by the hydraulic loop.

Water procurement of Piaggio Group production sites

m3 PontederaNoale and ScorzèMandello Del LarioBaramatiVinh PhucTOTAL
2017Water from wells252,80917,6287,703  278,140
Water from the mains56,64111,294556277,070117,465463,026
Total309,45028,9228,259277,070117,465741,166
2016Water from wells242,48917,9551,268  261,712
Water from the mains58,5109,441854254,889124,665448,359
Total300,99927,3962,122254,889124,665710,071
Change 2017-2016Total2.8%5.6%289.2%8.7%-5.8%4.4%
2015Water from wells245,6877,5992,490  255,776
Water from the mains43,1107,959704297,956119,351469,080
Total288,79715,5583,194297,956119,351724,856

At the Mandello plant, where well water is used exclusively for the cooling systems, it can be observed that water consumption has increased significantly - as these systems have seen heavier use.

Water consumption has increased slightly overall as a result of the increase in production volumes, but Piaggio will continue to engage in activities and will accelerate targeted checks in order to achieve further reductions, in the belief that minimising the use of this resource is an essential obligation.

As regards waste water, environmental respect is ensured with processes to treat and purify waste water.

Below we report the destination of waste water produced, estimated to be equivalent to the amount of water supply used, for each production site:

  • Pontedera: all industrial and most non-industrial waste water is conveyed to a chemical/physical purification plant outside the site. After biological treatment, the waste is discharged into an open channel. A small part of the waste-water coming from the toilets located in two areas of the factory, is directly discharged into the public sewer system;
  • Noale: all buildings are connected to the public sewer system. The waste water is of a non-industrial origin only (from toilets and the site canteen);
  • Scorzè: the plant is not served by the public sewer system, so waste water is biologically purified at the site and then conveyed to the local Rio Desolino canal;
  • Mandello del Lario: the plant discharges a part of waste water directly into the public sewer system (non-industrial waste water, canteen waste water, etc.), while waters used in the cooling plants are discharged into the Torrente Valletta stream;
  • Baramati: waste water is treated and used for irrigation purposes;
  • Vinh Phuc: the site has a chemical/physical purification plant for waste from painting pre-treatment operations before it is conveyed to the public sewer systems, where all other site waste (non-industrial waste) is sent. The final destination is in the public sewer system.

In terms of recycled and reused water, only the sites of Baramati and Vinh Phuc reuse part of the drawn water. Specifically, approximately 143,342 m³ of water was recycled and reused by the Indian site in 2017, equal to 51.7% of the total amount drawn by the site. At the Vietnamese factory, waste water recovery amounted to 12,985 m³/y, or approximately 11%.

Water supplies of the Piaggio Group (m3)

Water supplies of the Piaggio Group (m3)

As already mentioned, the Group also operates through commercial companies (distributors and selling agencies) and research centres located within the various reference markets. It is not always possible to measure water use at these sites, as they sometimes share communal services with other tenants within the buildings in question. However, Piaggio strives to monitor water usage at non-production sites, estimated to be around 1,000 m3 per year. The consumption of water, which are for the exclusive use of hygiene and come from civil aqueducts, coincide with the discharges.

Waste handling and recovery

Where possible, the Piaggio Group tries to recover rather than dispose of waste and reconditioning and reuse have been a common practice at all sites for several years now. The Group is also committed to using environmentally compatible processes and technologies that can reduce waste production. Moreover, it has a priority objective of further increasing its recovered waste/disposed of waste ratio. Sites with an environmental management system have specific procedures in place to facilitate waste disposal and recovery, thus avoiding operations that are harmful for the environment or that may affect activities. In all the other factories, the general indications were obtained from the above procedures and adjusted to reflect locally applicable regulations.

Waste produced at Piaggio Group production sites

Ton PontederaNoale and ScorzèMandello Del Lario BaramatiVinh PhucTotal
2017Total waste5,9289751961,6391,0179,754
Hazardous12.2%1.6%2.6%18.1%70.9%18.0%
For disposal5.1%1.9%1.9%17.1%79.3%14.4%
For recycling94.9%98.1%98.1%82.9%20.7%85.6%
2016Total waste6,0016912361,7541,0679,750
Hazardous11.6%3.6%3.0%29.3%70.7%20.5%
For disposal5.5%0.3%2.3%28.7%78.8%17.2%
For recycling94.5%99.7%97.7%71.3%21.2%82.8%
Change 2017-2016Total-1.2%41.0%-17.1%-6.6%-4.7%0.0%
2015Total waste3,5917101811,9469137,340
Hazardous21.9%3.1%3.0%22.9%66.8%25.5%
For disposal11.0%9.5%3.8%22.7%75.4%21.8%
For recycling89.0%90.5%96.2%77.3%24.6%78.2%

While the overall quantity of waste produced in 2016 and 2017 was more or less constant, a decline in hazardous waste can be observed, along with an increase in waste destined for recovery.

Avoiding soil contamination

As in previous years, no spills or polluting events of significance occurred at any of Piaggio's production sites in 2017.

At the Mandello and Pontedera, decontamination initiatives are under way due to historic contaminations of the sites. These situations emerged during demolition work in Mandello and during environmental monitoring campaigns in Pontedera. In both cases, the pollutants found have not been used in the production sites for several decades, providing the historical nature of their origin. In accordance with legal obligations, the two situations have been reported to the relevant authorities and managed according to their instructions.

Biodiversity

Piaggio's production sites are not located in protected areas or areas with high levels of biodiversity. The sole exception is the Scorzè site, which although located in an industrial zone, conveys its waste water into the drainage basin of the Venetian Lagoon. As such the production site is subject to restrictions imposed by specific laws.

Environmental spending and investments

The Group's commitment to environmental sustainability is further demonstrated by the 1.4 million Euros invested in the environment by Italian production sites in 2017.

Euro201720162015
Waste disposal, waste treatment and environmental restoration costs523,338425,850402,555
 
Costs for prevention and environmental management828,334882,0532,096,939
Total1,351,6721,307,9032,499,494

Logistics

The Group has consolidated its logistics model aimed at benefiting from the synergies among the various distribution centres in Europe and identifying opportunities for optimisation, paying particular attention to service quality aspects.

To optimise distribution the model calls for targeted management of departures and routes to travel.

The procedure also disciplines:

  • The vehicles and equipment used by logistics operators certified by Piaggio, in accordance with the relevant quality standards;
  • Replacement of vehicles for internal shuttling with others equipped with systems to cut CO2 emissions;
  • The packaging collection service to manage the pick-up of packaging from dealers and its disposal according to local regulations in force;
  • Disposal and waste sorting of waste material (e.g., due to decontainerisation) and packaging substitution;
  • Printing of only the documents which are necessary.

To reduce transfer needs to a minimum the model requires that produced vehicles are stored in the distribution centre adjacent to the production site and that importing of overseas products is centralised.

Thanks to centralised management of all logistics centres (Pontedera, Quinto di Treviso, Mandello):

  • The number of trips needed to transfer stock between centres has been reduced;
  • The use of electronic archives for storing shipment documents has been consolidated and paper copies have been reduced;
  • Printing of shipping documents to be sent to end customers has been minimised, and electronic documents are used whenever possible.

Within the context of the Group's vehicle distribution activities (for the contract valid from 2017-2019), the process of improving operational activities that was already underway has continued.

In addition, to further optimise saturation of vehicle transport travels and minimise the number of journeys between hubs for the transfer of vehicles in stock, the distribution warehouse for Moto Guzzi vehicles (manufactured at the Mandello factory) and Aprilia vehicles (manufactured at the Scorzè factory) has now been unified. Furthermore, at January 2018, the distribution warehouse for Moto Guzzi and Aprilia vehicles will be moved from Quinto di Treviso to inside the Scorzè plant, enabling all journeys previously necessary to place vehicles produced in the Aprilia plant in the warehouse to be eliminated.

In 2017, these activities enabled distribution operations to be reduced by 1.12% for the two-wheeler vehicle sector, and by 0.61% for the commercial vehicles sector with regard to the figures for 2016.

Activities focused on the dematerialisation of transport documents (where possible) are currently in the start-up phase, and are designed to eliminate the use of paper documents almost entirely.

The production centres in India and Vietnam also set up procedures aimed at minimising the number of trips for shipping produced vehicles and consumption of packing materials.

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