Environment

Piaggio aims to apply a model of sustainable development that not only satisfies the expectations of stakeholders (investors, shareholders, staff, suppliers, community, public administration) by guaranteeing economic and social sustainability, but also roots its actions in environmental sustainability, meaning the ability to safeguard natural resources and the ability of the ecosystem to absorb direct and indirect impacts generated by production activities.

Specifically, Piaggio seeks to minimise the environmental impact of its industrial activities through careful definition of the technological transformation cycle and using the best technologies and most modern methods of production. The pursuit of these environmental sustainability goals is blazing a trail of ongoing improvement of environmental performance.

This commitment, enacted in the Code of Ethics[1] and stated by top management in the Group's "environmental policy" which is the basis for the environmental certification (ISO 14001) programmes already undertaken and maintained at production sites, is a mandatory benchmark for all company sites no matter where they are working.

Quantitative data on the mitigation of the environmental impact resulting from the Group's operations are reported on in the sections below. Data refer to the entire Group, with the exception of business offices in various countries, whose use of resources, air emissions, exhaust and production of waste mainly concern office activities. Since their contribution to Group data has been deemed to be marginal, these have not been included in the enclosed tables.

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 recovery;
  • soil contamination;
  • biodiversity;
  • environmental spending and investments.

[1] Code of Ethics - Article 8: Without prejudice to compliance with the specific applicable regulation, the Company pays attention to environmental issues in its decisions, also adopting - where operationally and economically feasible and compatible - environmentally friendly production technologies and methods, with the aim of reducing the environmental impact of its activities.

Reduction of energy consumption

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 to introduce machinery and methods that minimise the environmental impact.

Especially starting in 2014, rigorous research initiatives designed to reduce energy waste were launched in Pontedera. The two most significant projects in this area, already started and now in full operation, are:

  • the renewal of the compressors at the plant and the introduction of an automatic control system of machines under operation to optimise energy performances and cover the plant’s requirements.
  • the implementation of the smart metering system, which makes the consumption measurements detected by the over 90 meters at the plant, usable, observable, comparable in almost real time (with a 3 hour delay) and analysable.

In 2016, efforts were focused on the optimisation of consumption at the departments, in some cases reaching 35% of energy savings.

In 2016, however, there has been an increase in energy consumption at the Italian facilities. For the Mandello plant, the increase is due to increased production levels. The slight increase at the Noale and Scorzè factories reflected the longer operation time of the plants, due to tests and experiments.

A special case was the situation at the Pontedera factory, where the increase in the main items of energy consumption was caused by the need to use both the old and the new paint facilities in the scooter department, during the start-up of the new plant. The latter had an excellent environmental performance in terms of air pollution.

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

Energy consumption of Piaggio Group production sites

    Pontedera Noale and Scorzè Mandello Del Lario Baramati Vinh Phuc Total
  2016 40,109 4,378 827 25,071 13,560 83,945
Electricity (Thousand KWh) 2015 38,762 4,180 767 25,873 13,330 82,912
Change 2016-2015 3.5% 4.7% 7.8% -3.1% 1.7% 1.2%
2014 40,213 3,800 746 26,562 13,270 84,591
Methane/Natural Gas (Sm3) 2016 6,173,722 270,863 153,337     6,597,922
2015 5,742,963 309,577 142,125     6,194,665
Change 2016-2015 7.5% -12.5% 7.9%     6.5%
2014 5,378,771 197,091 135,095     5,710,957
GPL1 (Ton.) 2016       377 21 398
2015       158 20 178
Change 2016-2015       138.6% 5.0% 123.6%
2014       199 22 221
Diesel fuel1 (Litres) 2016 1,633     1,675,129 617,033 2,293,795
2015 1,860     2,322,563 701,390 3,025,813
Change 2016-2015 -12.2%     -27.9% -12.0% -24.2%
2014 1,590     2,168,530 696,578 2,866,698

Some values are based on estimates. 

Piaggio Group energy consumption

Piaggio Group energy consumption

* The 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.

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 CSR Reports, show that the changes made were appropriate. Indeed, in 2016 emission levels were substantially in line with those already detected in previous years.

The largest reductions were in Baramati, where improvement measures were put in place regarding the systems (heat recovery, elimination of heat losses in the ovens) and operating management in the paint shop.

Direct and indirect CO2 emissions of Piaggio Group production sites

Ton   Pontedera Noale and Scorzè Mandello Del Lario Baramati Vinh Phuc Total
2016 direct1 12,162 532 300 4,481 1,841 19,316
indirect 13,107 1,431 271 18,452 8,966 42,227
2015 direct1 11,234 605 278 6,213 2,058 20,388
indirect 12,667 1,366 251 19,043 7,683 41,010
Change 2016-2015 direct1 8.3% -12.1% 7.9% -27.9% -10.5% -5.3%
indirect 3.5% 4.8% 8.0% -3.1% 16.7% 3.0%
2014 direct1           10,526           388           266          5,801        2,052 19,033
indirect           13,270        1,254           246        19,550         7,649 41,969

1 CO2 emissions deriving from the combustion of methane, natural gas, diesel fuel and LPG.

CO2 emissions of the Piaggio Group (Equivalent Tons)

co2_emissions_of_the_piaggio_group_equiv

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 certifi ed by the verifi cation body accredited by the National Competent Authority (ANC), except for the 2016 fi gure, the certifi cation of which is planned for March 2017.

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

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

Other significant emissions at the production sites of the Piaggio Group1

    Pontedera Noale and Scorzè Mandello Del Lario Baramati Vinh Phuc Total
  2016 111.2     336.0 3.8 451.0
COV (Ton.) 2015 122.3     380.0 3.0 505.3
Change 2016-2015 -9.1%     -11.6% 26.7% -10.7%
2014 118.4     452.0 4.4 574.8

1 Reported data are also based on processing using estimates.

Although emissions of VOCs at the Group have decreased considerably in the last few years, the use of technologies with less impact on atmospheric pollution and on water resources is being evaluated. Specifically, in the Pontedera factory a new paint plant for scooters was put into operation in the course of 2016, which has already generated positive effects on the amount of emitted VOCs, although it is expected that the greatest benefits in this regard will be recorded at the end of 2017.

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 its 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   Pontedera Noale and Scorzè Mandello Del Lario Baramati Vinh Phuc TOTAL
2016 Water from wells 242,489 17,955 1,268     261,712 
Water from the mains 58,510 9,441 854 254,889 124,665  448,359 
Total 300,999 27,396 2,122 254,889 124,665  710,071 
2015 Water from wells 245,687 7,599 2,490     255,776
Water from the mains 43,110 7,959 704 297,956 119,351 469,080
Total 288,797 15,558 3,194 297,956 119,351 724,856
Difference 2016-2015 Total 4.2% 76.1% -33.6% -14.5% 4.5% -2.0%
2014 Water from wells        333,337           5,035          8,025            346,397
Water from the mains          45,572            5,897            747        275,781          103,255        431,252
Total       378,909          10,932          8,772        275,781          103,255        777,649

At the Mandello plant, where well water is used exclusively for cooling systems, the low outdoor temperatures recorded, combined with good water management practices, have brought a noticeable drop in consumption.

Water consumption slightly dropped, and despite having already obtained drastic reduction which could lead to the conviction of having reached a level difficult to further improve, Piaggio continues to undertake activities and tests aimed at additional reductions. A special case was the increase in water pumped from the wells in Noale and Scorzè (less than 2% of total withdrawals) due to a previous measurement anomaly, remedied at the beginning of 2016.

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, from toilet facilities of the two site areas, is directly conveyed to 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 to purify pre-treated waste from painting 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 114,889 m³ of water were recycled and reused by the Indian site in 2016, equal to 45.1% of the total amount drawn by the site. In the Vietnamese factory, waste water recovery amounted to 12,316m³/y or approximately 9.9%.

Water supplies of the Piaggio Group (m3)

water_supplies_of_the_piaggio_group_m3.j

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 Company is also committed to using environmentally compatible processes and technologies that can reduce the production of waste. 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 local applicable regulations.

Waste produced at Piaggio Group production sites

Ton   Pontedera Noale and Scorzè Mandello Del Lario Baramati Vinh Phuc Total
2016 Total waste 6,001 691 236 1,754 1,067 9,750
Hazardous 11.6% 3.6% 3.0% 29.3% 70.7% 20.5%
For recycling 94.5% 99.7% 97.7% 71.3% 21.2% 82.8%
2015 Total waste 3,591 710 181 1,946 913 7,340
Hazardous 21.9% 3.1% 3.0% 22.9% 66.8% 25.5%
For recycling 89.0% 90.5% 96.2% 77.3% 24.6% 78.2%
Difference 2016-2015 Total 67.1% -2.6% 30.7% -9.8% 16.9% 32.8%
2014 Total waste 1,876 564 331 1,859 1,137 5,766
Hazardous 26.3% 3.8% 0.6% 22.6% 76.1% 31.2%
For recycling 84.6% 89.6% 99.5% 78.9% 19.0% 71.2%

Especially evident is the change in waste volume between 2015 and 2016 at the Pontedera production site, which in 2016 saw the completion of the first year of direct packaging management, following the amendment of the Municipal Regulations according to which, as of the second half of 2015, cardboard, wood and nylon packaging is no longer considered as municipal waste.

For other sites, there were no significant increases or decreases and the changes were attributable to production changes or optimisation of the waste cycle.

Avoiding soil contamination

We report that in 2016, as in 2015, no spills or polluting events of significance occurred at any of Piaggio’s production sites.

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 proven by the € 1.3 million invested in the environment by Italian production sites in 2016. To this amount, around € 7 million must be added, which were recognised in the accounts in relation to the progress of construction works for the new paint plant. As forecasted and described in earlier reports, the new plant, in addition to ensuring high quality standards, has led to significant environmental benefits, especially with regard to atmospheric emissions.

Environmental spending and investments in Italy 2016 2015 2014
(figures in euro)      
Waste disposal, waste treatment and environmental restoration costs 425,850 402,555 332,819
Costs for prevention and environmental management 882,053 2,096,939 1,629,451
Total 1,307,903 2,499,494 1,962,270

Logistics

The Group has consolidated its logistics model aimed at benefi ting 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 certifi ed 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 reduced;
  • printing of shipping documents to be sent to end customers has been minimised, and electronic documents are used whenever possible.

As part of the distribution of vehicles (for the contract in force in the period 2014-2016), a process for the improvement of operational activities was started, which in 2016 recorded a total reduction of distribution operations of 0.81% for the two-wheeler sector and of 0.34% for the Commercial Vehicles sector compared to 2015.

For the new contract for the 2017-2019 period, which is being finalised, activities are in the start-up phase for the dematerialisation of transport documents to the largest extent possible, in order to almost completely eliminate the use of paper documents. In addition, to further optimise saturation of vehicle transport travels and minimise the number of travels between hubs for the transfer of vehicles in stock, a centralisation process is ongoing for the Moto Guzzi (manufactured at the Mandello factory) and the Aprilia (manufactured at the Scorzè factory) distribution warehouse.

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.

AddToAny

Last update: 04/24/2017 18:08