The Modern Slavery Act issued every year by Piaggio Group describes the measures taken to ensure, as required by the UK “Modern Slavery Act 2015 - Section 54”, the absence of any form of “modern slavery, forced labor and human trafficking” within its organization and outside along its own supply chain.

This Statement applies to Piaggio & C S.p.A. (the Parent Company) and its subsidiary Piaggio Limited Ltd, the selling agency that provides a sales promotion service and after-sales service on UK market. 

PIAGGIO GROUP PROFILE

The Piaggio Group, based in Pontedera (Pisa, Italy) is Europe's largest manufacturer of two-wheeler motor vehicles and an international leader in its field. Today it has three distinct areas of activity:

  • 2-wheelers, scooters and motorbikes from 50cc to 1,400cc;
  • light commercial vehicles, 3- and 4-wheelers;
  • the robotics division with Piaggio Fast Forward, the Group's research centre on the mobility of the future based in Boston.
  • Over 100 countries served
  • 4 production plants in Italy, 1 in India and 1 in Vietnam
  • 3 research centres in Italy, 2 in the United States of America, 1 in India, 1 in Vietnam and 1 in China
  • Nearly 362000 two-wheeler vehicles and nearly 100000 three- and four-wheeler vehicles produced
  • Over 1000 suppliers
  • Over 5800 employees with 19 of those being employed in the UK

The Group has succeeded in exporting a business model targeting innovation and in establishing a strong link with the places in which it operates, pursuing a business philosophy characterised by a strong sense of social responsibility: a culture of safety, respect for people and the protection of natural resources are a common theme throughout the Group.
The Group's conduct is guided by the principles and values set forth in the Code of Ethics, which all Group staff, and all those who interact with Piaggio throughout the world, are required to observe. The values contained within the Group’s Code of Ethics are consistent with the 17 Sustainable Development Goals (SDGs).

OUR SUPPLY CHAIN

Piaggio Group produces vehicles that are sold under its brand on the various markets around the world. The only exception regards vehicles purchased by the Chinese subsidiary Zongshen Piaggio Foshan (about 14,264 units in 2020, equivalent to 2.95% of vehicles sold).
All engines are manufactured internally. All the other components that constitute a vehicle are purchased externally and assembled in-company.
Suppliers are selected based on the quality and competitiveness of their products and services.
Our operations impact local economies and whenever possible, we utilize local suppliers near major locations of operation. This generates direct and indirect income and employment opportunities in the communities where the business is located while minimizing transport-related environmental impacts.
Group relations with suppliers are based on loyalty, impartiality and respect of equal opportunities of all parties concerned.
Supplier relations are defined by specific processes and procedures related to the selection, qualification, management and monitoring/assessment of suppliers. “Vendor Rating Campaigns”, during which suppliers are evaluated on the basis of business and quality criteria, are performed twice a year.
The Piaggio Group is convinced that responsibility is a commitment which goes beyond the boundaries of the Company and must positively involve everyone in the Company-supplier chain; this is why suppliers worldwide that wish to do business with Piaggio have to sign the general conditions of supply of the Piaggio Group which include the “Code of Ethics and Guidelines for doing business”. A new procedure is being tested in Italy, where Piaggio requires suppliers to sign a "Sustainability Statement" in order for them to be included on the Supplier List for Italy, and ensure compliance with its ethical values throughout the production cycle and sales of its products.

OUR POLICIES

The Piaggio Group, in achieving its mission, has adopted a system of Policies aimed at guaranteeing compliance with principles of fairness, transparency, honesty and integrity in line with international standards on responsible business management.
The Group operates in diverse geographic, legal and cultural contexts. As such, its policies and guidelines are put in place by each company, through their own operating procedures and practices.

Organisational model pursuant to Legislative Decree no. 231/2001

The internal control and risk management system of Piaggio & C. includes the Organisational, Management and Control Model for the prevention of corporate offences pursuant to Legislative Decree 231/2001 (“Model pursuant to Legislative Decree 231/2001”), which Piaggio & C. adopted in 2004, and which was last updated and approved by the Board of Directors of the Company on 27 July 2020, with the introduction of the predicate crimes contemplated in Article 25 quinqiuesdecies of Legislative Decree 231/2001 (tax crimes).

The Model pursuant to Legislative Decree 231/2001 – widely distributed by e-mail to all Piaggio Group employees in Italy, as well as published on the company Intranet – is constantly monitored and periodically updated. It is available on the corporate web site (www.piaggiogroup.com) in the section Governance/System.

Pursuant to Italian Legislative Decree 231/2001 Piaggio & C. has adopted a Code of Ethics. 

Code of Ethics

The Code of Ethics was last updated in 2017, with the introduction of an article on safeguarding human rights, aimed in particular at preventing "modern slavery".
Through this article, the company expresses its commitment to recognising and ensuring the utmost respect for the principles that protect human rights, as shared at international level and articulated in a number of international conventions. In particular, respect for personal dignity, for the individual and the prohibition of any type of discrimination.
These principles, already embraced by the company as they are implicit in its code of ethics, have been described more specifically, in order to align the code with the ethical and social values that inspire the Piaggio Group's activities.
The Code of Ethics, available online at (www.piaggiogroup.com/Governance), is in force at all Group companies and clearly and transparently sets out the principles and values which the entire company organisation takes inspiration from:

  • complying with the laws of countries where Piaggio operates;
  • dismissing and condemning unlawful and improper behaviour;
  • preventing breaches of lawfulness, constantly achieving transparency and openness in managing the business;
  • seeking excellence and market competitiveness;
  • respecting, protecting and valuing human resources;
  • pursuing sustainable development while respecting the environment and the rights of future generations.

The Group's Code of Ethics sets out the social and ethical responsibilities of each member of the Company's organisation. In particular the ethical and social responsibilities of senior management, middle management, employees and suppliers are defined, in order to prevent any party acting in the name of and on behalf of Group companies, from adopting a conduct which is irresponsible or unlawful.
All employees and suppliers are required to sign and respect the Group's Code of Ethics in order to be able to work with Piaggio.

Guidelines for respecting human rights

Piaggio is aware that slavery and human trafficking can occur in many forms, such as forced labour, child labour, domestic servitude and related forms of workplace abuse.
It recognises the importance of its role in fighting any violation of human rights and to this end improves and continually aligns its policies and controls, to prevent any potential violation that could affect the Group or its procurement chain.
Therefore Piaggio condemns any form of modern slavery and conforms to the Guiding Principles on Business and Human Rights adopted by the United Nations in 2011 and the ILO Declaration on Fundamental Principles and Rights at Work adopted in 1998.

Group companies comply with national and international laws and regulations and conduct their activities in compliance with the Code of Ethics.

To maintain the highest standards of ethical, moral and legal conduct, Piaggio encourages its employees to report any allegedly nonconforming conduct, guaranteeing they will not be affected by harmful consequences.

The Whistle blowing Policy, initially developed for the Group's Indian company, aims to provide a safe means for employees and other parties concerned to report violations that come to their knowledge in the context of their work activities. For this purpose, in compliance with Law 179/2017, an entirely new section with regulations on whistle-blowing designed to protect workers that report unlawful activities and irregularities that come to their knowledge during their work was added to the last revision of the Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001.

Based on the specific nature and significance of India a Policy on the Prevention of Sexual Harassment of women in the workplace has been prepared and in effect for some years now at the Indian affiliate.

RISK ASSESMENT

The Piaggio Group started an Enterprise Risk Management (ERM) project to define and implement a structured, integrated system to identify, measure and manage company risks in line with applicable best practices. During 2020, the campaign to update the Group's risk profile, involving company managers across the Group, identified 160 risk scenarios, comprising 26 categories which were grouped into 4 level-one macro-categories (External, Operational, Financial, Strategic Risks). For a more detailed analysis of all the risks identified by the Piaggio Group, see the Report on Operations in the 2020 Consolidated Financial Statements.
Here below the risks concerning human rights and slavery are analysed.

Supply chain

Piaggio considers that the greatest risk to the safeguarding of human rights (including modern slavery and human trafficking issues) could be found in its supply chain, as this is the area where operations and managerial oversight are out of the Group’s direct control. Also within the supply chain, certain areas and suppliers may result having a higher risk than others.
To prevent this risk suppliers all over the world who wish to do business with Piaggio must sign the Group’s general supply conditions, which include the Code of Ethics.

Employee

This area covers numerous aspects, such as the management of human capital, including career development, the remuneration and training system, the promotion of diversity and inclusion, as well as aspects relative to occupational health and safety and trade union relations.
Piaggio operates globally with employees in Europe, the Americas and Asia. It promotes diversity in age, culture, ethnics, religion, political opinion, civil status, gender, physical ability, sexual orientation, encouraging different ways to achieve and reach the highest levels of performance within a single and broader-ranging organisational set-up of the Group. The integration of disabled people into the workforce is also made possible in practice by the accessibility of company facilities and the existence of a relative company procedure.
Piaggio adopts a system of recruitment, development and salary packages for personnel which recognises and rewards merit and performance. Development tools are used to build on and continually improve skills, while empowering potential, recognising and rewarding outstanding performance. Reward policies remunerate people and their contribution based on principles of meritocracy and transparency. The above mechanisms reduce potential risks related to these aspects to a residual level which is not significant.
The Piaggio Group acknowledges the role of trade union organisations and worker representatives and is committed to establishing relationships with them that are characterised by attention, dialogue and a common understanding; in fact, assessment and continual engagement are considered essential for identifying the best solutions for the company's specific needs. For these reasons and despite the high number of employees with trade union membership, strikes are infrequent.
As regards occupational health and safety the sites in Italy, Vietnam and India have an Occupational Health and Safety management system certified by an accredited body. Audits are conducted annually and were successfully completed in 2020.
During the extraordinary conditions related to Covid-19 pandemic, Piaggio has adopted measures to ensure social distancing, the sanitization of workstations and communal areas, taking people’s temperature at the site entrance, the adoption of specific PPE (e.g. distribution of masks and sanitizing gels), as well as the introduction of smart working.
This activity was supervised by local anti-Covid committees monitored at Group level.

Human rights

As set out in the Code of Ethics, adopted in 2004 and updated during 2017, Piaggio specifically prohibits any form of discrimination or forced labour.
To maintain the highest standards of ethical, moral and legal conduct, Piaggio encourages its employees to report any suspected misconduct.
The Whistle blowing Policy, initially developed for the Group's Indian company, aims to provide a safe means for employees and other parties concerned to report violations that come to their knowledge in the context of their work activities. For this purpose, in compliance with Law 179/2017, an entirely new section with regulations on whistle-blowing designed to protect workers that report unlawful activities and irregularities that come to their knowledge during their work was added to the last revision of the Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001.
Based on prevention and control mechanisms established in the Code of Ethics and adopted by all Group subsidiaries, no risk scenarios relative to the violation of human rights were identified.

PERFORMANCE INDICATOR

Performance indicators are essential in order to assess the effectiveness of the measures implemented.
During 2020 there were no whistleblowing procedures on human rights nor investigations carried out following whistleblowing concerns on human rights.
None of the Piaggio Group companies were affected by episodes concerning employee discrimination or the breach of employee rights.

TRAINING

The Group understands the importance of providing regular training on human rights topics, such as modern slavery and human trafficking, in order to raise awareness and increase commitment across the Company and within the supply chain. Since respect for human rights is one of the fundamental principles of Piaggio's Code of Ethics and the latter is attributed to each new employee and is a common asset of the Company, so far it has not been deemed necessary to establish training courses specifically aimed at the issue of human rights.

OUR COMMITMENT FOR THE FUTURE

Piaggio will continue to monitor and improve its process, procedures and activities to prevent any form of human rights violation and to ensure adequate protection of ethical principles, workers' rights and environmental protection within their business and their supply chain aiming to a continuous improvement.

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