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. Pursuing these objectives generates continual improvement in environmental performance, not only in production but also throughout the product life cycle.

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;
  • Environmental spending and investments

Reduction of energy consumption

The aim of the Group is to optimise plant management and minimise energy waste. Energy is procured from leading energy companies whose production is mainly from renewable sources.
In particular, the energy supplier in Italy has declared a production mix which will see around half of all energy derived from renewable sources, while for the company in Holland, energy procured is entirely 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.
Having an extensive monitoring network of main energy providers is important for achieving noticeable results, especially in more complex activities. For example, since 2016, the Pontedera site has been adopting measures to reduce energy waste with a smart metering system that can use, observe, compare on a near real time basis (with a delay of 3 hours) and also analyse the consumption recorded by over 90 meters at the site, with results that are clear. Changes in consumption at other Italian sites, which are negligible in quantitative terms compared to the Pontedera site, are due to variations in production volumes and heating system management based on recorded outdoor temperatures.

At Asian sites, consumption has generally gone up, due to the considerable increase in production. The focus on energy efficiency is also maintained at these sites. A study of energy consumption at the Baramati site in 2018 and 2017 shows a 4.94% reduction in energy needed per part produced (engines), demonstrating the Group’s commitment to this aspect.

Piaggio Group energy consumption

  PontederaNoale and ScorzèMandello Del LarioBaramatiVinh PhucTotal sitesCommercial Companies1Total
Electricity
(Thousand KWh)
201833, 2393,86563828,88614,45181,05975681,815
201735,7233,96669924,72913,55878,73565478,389
Change
2018-2017
-7.0%-2.5%-8.7%16.4%6.6%3.0%15.6%3.1%
201640,1094,37882725,07113,56083,94557284,517
Methane/Natural
Gas (Sm3)
20185,185,857382,753146,071  5,714,6815,714,681
20175,583,383321,669165,087  6,070.1396,070.139
Change
2018-2017
-7.1%19.0%-11.5%  -5.9%-5.9%
20166,173,722270,863153,337  6,597,9226,597,922
LPG1(Ton.)20181,898201,9181,918
2017   53418552552
Change
2018-2017
   255.4%10.0%247.4%247.4%
2016   37721398398
Diesel fuel1(Litres)20182,174  171,617646,584820,375820,375
20172,516  1,629,341610,4422,242,2992,242,299
Change
2018-2017
-13,6%  -89,5%5.9%-63.4%-63.4%
20161,633  1,675,129617,0332,293,7952,293,795

1 Some values are based on estimates. 

Piaggio Group energy consumption

  Electricity Methane / Natural gasLPGDiesel fuel Total
Use in GJ22018294,534222,93088,41129,871635,745
2017285,800236,79625,44781,646629,689
2016304,261257,38518,34883,521663,515


The Group also operates through commercial companies (distributors and selling agencies) and research centres located on various reference markets. The energy use at these sites cannot always be recorded, as the sites are sometimes located on property which is not owned, where communal services are shared with other occupants.

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.

Use of fuels for company cars and testing vehicles in Italy3

  PontederaNoale e ScorzèMandello Del LarioTotal
sites
Petrol (Litres)2018162,96219,49312,878195.332
2017151,50418,97015,602186,076
Delta 2018-20177.6%2.8%-17.5%5.0%
2016190,55326,73018,296235,579
Methane/Natural 
Gas (Sm3)
2018996996
2017151151
Delta 2018-2017559.4%559.4
20161,5841,584
LPG (Ton.)2018 96  96
2017 938  938
Delta 2018-2017 -89.8%  -89.8%
2016 5,453  5,453
Diesel fuel (Litres)201834,715 49,778 4,89789,390
201734,152 27,359 3,41964,929
Delta 2018-20171.7% 81.9% 43.2%37.7%
201682,291 38,020 5,224125,536

Some values are based on estimates.

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 financial statements, show that the changes made were appropriate. Indeed, in 2018 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
2018direct 110,3357522872,5221,89015,786
indirect10,9891,27821123,6709,55545,703
2017direct 111,1526323244,3581,81518,281
indirect11,8101,31123120,3278,96342,642
Change 2018-2017direct-7.3%19.0%-11.4%-42.1%4.1%-13.6%
indirect-7.0%-2.5%-8.7%16.4%6.6%7.2%
2016direct112,1015303004,4811,84119,253
indirect13,1071,43127118,4528,96642,227

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.

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 2018 figure; for this, certification is planned for March 2019.

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

  PontederaNoale and ScorzèMandello Del Lario BaramatiVinh PhucTotal
COV (Ton.)201830.8601.03.3635.1
201746.1  433.04.4483.5
Change 2018-2017-33.2%  38.8%-25.0%31.4%
2016111.2  336.03.8451.0

1 Reported data are also based on processing using estimates

The quantity of VOCs emitted by the Pontedera site also decreased in 2018, improving on the 2017 figure, thanks to the new scooter painting plant becoming fully operational. The increase in VOC emissions from the Baramati site is due to the considerable increase in the number of scooters manufactured, while the decrease recorded for the Vinh Phuc site, although considerable in percentage terms, is not significant in quantitative 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 supplies of the Piaggio Group

m3 PontederaNoale and ScorzèMandello Del LarioBaramatiVinh PhucTotal sitesCommercial Companies1TOTAL
2018Water from wells222,9739,28812,775245,036245,036
Water from the mains60,35711,866526321,474129,334523,5571,624525,181
Total283,33021,15413,301321,474129, 334768,5931,624770,217
2017Water from wells252,80917,6287,703  278,140278,140
Water from the mains56,64111,294556277,070117,465463,0261,111464,137
Total309,45028,9228,259277,070117,465741,1661,111742,277
Change 2018-2017Total-8.4%-26.9%61.0%16.0%10.1%3.7%46.2%3.8%
2016Water from wells242,48917,9551,268  261,712261,712
Water from the mains58,5109,441854254,889124,665 448,3591,347449,706
Total300,99927,3962,122254,889124,665710,0711,347711,418


At the Mandello site, where water from wells is used only for cooling systems, consumption went up considerably due to an increased use of these cooling systems.

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.
  • Commercial companies: The water consumption, which is for hygienic use only and comes from civil waterworks, coincides with the water discharged as waste. The water use at these sites cannot always be recorded, as the sites are sometimes located on property which is not owned, where communal services are shared with other occupants.

Only the Baramati and Vinh Phuc sites reuse some of the water collected. Specifically, approximately 173,677 m3 of water was recycled and reused by the Indian site in 2018, equal to 54.0% of the total amount drawn by the site. At the Vietnamese factory, waste water recovery amounted to 13,143 m3/y, equal to approximately 10.2%.

Water supplies of the Piaggio Group (m3)

Water supplies of the Piaggio Group (m3)

Waste handling and recovering

Waste handling and recovery is a fundamental part of the Group’s environmental policy.
In this context, Italian sites increased their percentages of recovered waste in 2018, with up to and over 95% of waste produced recovered.
Asian sites considerably stepped up their production, which led to an increase in the amount of waste produced.
Lastly, it should be noted that the separation of hazardous from non-hazardous waste and the possibility of recovering waste is affected by local regulations.

Waste produced at Piaggio Group production sites

Ton PontederaNoale e ScorzèMandello Del Lario BaramatiVinh PhucTotale
2018Total waste6,4888821722,3661,43011,338
Hazardous11.1%1.6%2.7%11.9%75.6%18.5%
For disposal5.5%5.3%2.7%8.0%66.4%13.6%
For recycling94.5%94.7%97.3%92.0%33.6%86.4%
2017Totale 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%
Delta 2018-2017Total9.4%-9.5%-12.2%44.4%40.6%16.2%
2016Totale 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%

With the overall amount of waste produced has gone up considerably, the percentage of hazardous waste and its allocation in the last three years was basically stable.
Based on an analysis by type, most of the waste produced was metal waste (iron, aluminium, turning material, etc.) and packaging material (cardboard, wood, etc.). For example, at the Pontedera site, approximately 4,000 tons of packaging and 1,200 tons of metal are produced, with these two categories comprising nearly 80% of waste generated.

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.

Environmental spending and investments

The Group's commitment to environmental sustainability is further demonstrated by the 1.2 million euros invested in the environment by Italian production sites in 2018.

Euro2018 2017 2016
Waste disposal, waste treatment and environmental restoration costs465,282523,338425,850
Costs for prevention and environmental management738,422828,334882,053
Total1,203,7041,351,6721,307,903

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.

As part of vehicle distribution activities (for the contract valid for 2017-2019), the strategy to improve operating activities already under way continued. As a result, distribution activities for two-wheeler and commercial vehicles were basically stable in 2018 compared to 2017.

As part of activities to streamline distribution warehouses, a new distribution warehouse for Moto Guzzi vehicles (manufactured at the Mandello site) and Aprilia vehicles was set up, directly at the Scorzè site, making it possible to eliminate all transit necessary to store vehicles manufactured at the Aprilia site. Similarly, a project is being launched at the Pontedera site, enabling vehicles to be packed only during the dispatch stage. This will make it possible to combine the warehouses for packed and unpacked vehicles in 2019, eliminating all transfers of packed vehicles to the external warehouse, which will no longer be used.

Activities have started to have paperless transport documents as far as possible so that hard copy documents can be nearly entirely phased out.

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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