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 increases recorded in 2022 in CO2 emissions are due to the growth in production volumes and inclusion of the new Indonesian site in the reporting perimeter. Structural works (the replacement of boilers and restructuring of distribution networks), carried out over time and already described in previous financial statements, show that changes made have been appropriate.
CO2 emissions deriving from the combustion of methane, natural gas, diesel fuel and LPG used at plants are reported below.
Direct1 CO2eq emissions of Piaggio Group production sites
The greenhouse gases deriving from the use of diesel, fuel oil and methane at Italian plants, were determined using the calculation factors provided for in the ETS regulation referred to in the “Emission Trading” Directive (Directive 2003/87/EC). With reference to CO2 emissions, the industrial plant at Pontedera comes under the scope 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 plants releasing the lowest amount of CO2 indicated in the Directive.
CO2 emissions are almost entirely derived from the combustion of methane, marginally from the combustion of diesel fuel in back-up power generators and small amounts from the combustion of VOCs in the painting post-combuster.
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.
Direct CO2 emissions deriving from the combustion of fuels at Piaggio’s Pontedera site are certified by a certification body accredited by the National Competent Authority in March of each year.
Below are the CO2eq emissions deriving from the leakage of F-gas from the plants.
The next table shows the CO2eq emissions from the use of company cars and from testing and development activities.
Overall, direct emissions of the Group in 2022 were equal to 18,777 tons (19,823 tons in 2021).
Indirect2 scope 2 CO2 emissions of Piaggio Group production sites
For the location-based method, average emission factors related to national energy generation, published by national governing bodies, were used for the various countries where operations are carried out. In particular: for Italian plants, reference was made to the ISPRA publication “Emission factors for electricity production and consumption in Italy”; the emission data of Indian plants were determined by applying the coefficients established by The Central Electricity Authority “CO2 Baseline Database for the Indian power sector”; the data relating to the plants in Vietnam were calculated using the coefficients established by the “Department of Meteorology, Hydrology and Climate change – Ministry of Natural resource and Environment Vietnam”.
For the market-based method, the factor reported in the document Residual Mix Results, Association of issuing bodies (AIB), was used for the Italian plants. For the remaining countries, the same factors were applied as for the location-based method, due to the impossibility of obtaining market-based emission factors.
Indirect scope 3 CO2eq emissions
In order to improve reporting, the Group has started a process, from this year, for estimating other indirect greenhouse gas emissions. Out of the possible categories of indirect emissions, the Group has identified the “purchased goods and services’ and the “use of sold products” categories as making the most significant contribution.
For the “purchased goods and services” category, relative emissions were estimated considering the final costs in the Piaggio Group’s consolidated financial statements (please refer to the Cost of materials and Cost of services tables in the Notes to the Consolidated Financial Statements) using the Scope 3 Quantis evaluation tool “Scope 3 Evaluator”, issued by GHG Protocol in partnership with Quantis.
For the “use of sold products” category, the relative emissions were estimated on the basis of an average figure constructed from the specific emission factors of the best-selling models and the estimated annual kilometres travelled. This figure was then multiplied by the number of vehicles sold in the reporting year and the average life cycle of those vehicles, to obtain the total emissions of vehicles sold in the year3.
As previously commented, in 2022 the Group improved the efficiency of its production processes. The table below provides evidence of the results achieved:
Emission intensity (scope 1 + scope 2 Location-Based)
The emission intensity considering indirect scope 3 emissions (“purchased goods and services” and “use of sold products” categories):
Emission intensity (scope 3)
Total Piaggio Group emissions were 5,207,336, including indirect scope 2 emissions calculated using the market-based method.
Other significant emissions at the production site of the Piaggio Group5
Overall VOC emissions went up in 2022, compared to 2021. This increase is mainly attributable to the Indian plant, which internalized the painting process of some vehicle parts in 2022.
1To calculate Scope 1 emissions, the following were considered: (i) for Italian plants, the emission factors published by ISPRA in the document National Standard Parameters; (ii) for foreign plants, Department for Environmental Food & Rural Affairs (DEFRA) emission factors. It should be noted that the emissions calculated with the emission factors published by ISPRA are indicated in tonnes of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total greenhouse gas emissions (CO2eq), as can be inferred from the relevant technical literature.
2It should be noted that Scope 2 emissions are expressed in tonnes of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total greenhouse gas emissions (CO2eq), as can be inferred from the relevant technical literature.
3Some best-selling models were taken as a sample and their annual mileage was estimated. For each model, the emissions per km travelled were multiplied by the estimated annual mileage and the number of vehicles sold. The annual emissions thus obtained were divided by the number of vehicles sold in the models sampled, resulting in an average of weighted annual emissions per vehicle. This average figure was multiplied by the total number of vehicles sold in 2022, including those not sampled, resulting in the total annual emissions of vehicles sold. Finally, the total annual emissions thus obtained were multiplied by the average vehicle life years, in accordance with the calculation methodology of the ‘Technical Guidance for Calculating Scope 3 Emissions’. The emissions per km travelled were taken from the product data sheets, while the useful life of the vehicles and the average vehicle mileage are estimates.
4Emissions from company cars and testing activities are excluded.
5The reported data were processed considering the emission of VOCs in terms of hourly mass flow, based on periodic monitoring, and the number of hours of operation of the plants in the reporting year. The indicator only considers VOC (volatile organic compounds) released by solvents used in painting.