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 2021 in CO2 emissions are due to the growth in production volumes that affected the entire Group as a whole. 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
*Pontedera's direct CO2 emissions include not only the emissions deriving from the consumption of non-renewable fuels, but also the emissions
produced by the post-combustion of VOCs.
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 CO2 emissions deriving from the leakage of F-gas from the plants.
The next table shows the CO2 emissions from the use of company cars and from testing and development activities.
Overall, direct emissions of the Group in 2021 were equal to 19,823 tons (18,232 tons in 2020).
Indirect2 CO2eq 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 other countries, the same factors used for the location-based method were applied.
As previously commented, in 2021 the Group improved the efficiency of its production processes. The table below provides evidence of the results achieved:
Other significant emissions at the production sites of the Piaggio Group4
In 2021, a slight increase in overall VOC emissions was recorded compared to 2020 - a year characterised by prolonged production stoppages due to the pandemic - despite the significant growth in production. As for the Vietnamese plant, the strong reduction is due to the installation of a new plant for the absorption of harmful emissions.
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. Compared to the CSR Report 2020, a different source was used for the emission factors applied to foreign plants. Therefore, the relevant emission data were restated.
2Scope 2 emissions are indicated in tons 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.
3Emissions from company cars and testing activities are excluded.
4The 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.