Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Replaced two main boilers at Pontedera plant, considerably reducing consumption and pollutant emissions.
• Developed the first hybrid powerplant for scooters worldwide (Hybrid MP3).
• Entire range of number-plated vehicles conforms to Euro 3 standards, reducing pollutant emissions and consumption.
• Achieved more than 90% recyclability for a 250cc vehicle with plastic body.

Social Achievements

• Established a Business Ethics Committee.
• Implemented personnel management policies focused on respecting individuals and equal treatment.
• Provided 7,882 training hours in Italy in 2008.
• Launched a project on workplace ergonomics.

Governance Achievements

• Corporate Governance system conforms to the Corporate Governance Code of listed companies promoted by Borsa Italiana S.p.A.
• Adopted a Code of Ethics since 2004.
• Implemented an organisational model pursuant to Legislative Decree 231/2001.

Climate Goals & Targets

Environmental Challenges

• Overall decrease in sales of 12% in 2008 due to difficult market context.
• Appreciation of the euro against the dollar, Indian rupee and sterling.
• Decreased demand leading to staff downsizing.
• Increased accident frequency index at Pontedera plant in 2008.

Mitigation Strategies

• Downsized staff in areas not covered by social shock absorber policies.
• Took corrective actions to address increased accident frequency index.
• Stepped up training and information on accident prevention.
• Implemented improvement measures to decrease accident frequency and severity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Quality management systems and processes to ensure product conformity to required standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3

Certifications: UNI EN ISO 9001:2000, UNI EN ISO 14001:2004, OHSAS 18001:1999

Third-party Assurance: An external, independent body

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hybrid MP3 scooter
• Porter Eco Solution range

Awards & Recognition

• Best Museum and Company Archive in Italy (2003)

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Product sustainability
• Environmental sustainability
• Social sustainability

Environmental Achievements

• Attainment of environmental certification for the Vespa plant in Baramati (India)
• Reduction of asbestos cement roofs (various sites in Italy)
• Replacement of 5000 m² of asbestos cement (building 25) Pontedera
• Creation of a water collection and recycling system for water to wash the waste depot site in Pontedera
• Porter Europe: Type approval obtained for all versions. Petrol-Natural Gas bi-fuel chassis version type approved and introduced to the Porter range with CO2 120 g/km emissions.
• Recyclability rate of 88% for the MP3 125 Hybrid

Social Achievements

• Continued the third year of the talent programme, with addition of the Group’s Young talents
• Assessment performed and new talents added to the programme
• Consolidation of Management Review and Succession Planning process
• Dealer Portal update, and introduction of the new Dealer Business Service in the main markets
• Analysis tool for customer segmentation and identification of critical customer clusters by brand, product and dealer created
• Activation of caring projects aimed at promoting the brands and improving customer loyalty

Governance Achievements

• Continuing improvement of the corporate web site
• Achievement of AEO certification from the Italian Customs Authority
• Ongoing adaptation of the Code of Ethics to national and international best practices
• Appointment of Risk Manager and Compliance Officer

Climate Goals & Targets

Environmental Challenges

• Sales of two-wheeler vehicles were affected by a particularly negative market context and competitive scenario, at least as regards European markets.
• Sales of commercial vehicles were negatively affected by the concurrent downturn on all reference markets
• The slowdown in production activities in Italian plants in 2013, with some closure periods, resulted in an overall containment of consumption.

Mitigation Strategies

• Restructuring, rationalisation and organisational overhaul operations within the EMEA area
• Development of new models and engines with improved fuel efficiency and reduced emissions
• Optimising the management of existing sites to cut consumption
• Implementation of systematic improvement and management plans to limit environmental impact and reduce consumption

Supply Chain Management

Supplier Audits: Regular audits conducted on direct material suppliers; Vendor Rating campaigns.

Responsible Procurement

• All suppliers sign the Piaggio Group’s “Code of Ethics”
• Project to re-use recycled materials
• Reach project to test for environmentally harmful substances
• Packaging project to optimise packages and improve recyclability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-G3.1

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, ISO/TS 16946:2009, AEO-F

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• MP3 Hybrid
• Electric Porter
• Ape Calessino Electric Lithium
• Liberty e-mail
• New 125 / 150 “Three Valve” engine
• 125 and 300 Hybrid engine
• New Ape City with petrol, CNG, and LPG engines
• Porter Chassis Version fuelled by Natural Gas

Awards & Recognition

• Customer Center of expertise certificate from SAP
• Transatlantic Award 2013 from the American Chamber of Commerce in Italy
• 10th place in KWD Webranking Italy Top 100

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Product sustainability
• Environmental sustainability
• Social sustainability

Environmental Achievements

• Reduction of energy consumption through various initiatives, including compressor replacement and smart metering system implementation.
• Significant decrease in VOCs with the implementation of a new painting system (estimated 80% reduction by mid-2016).
• ISO 14001:2004 and OHSAS 18001:2007 certifications obtained for Indian subsidiary's Commercial Vehicles and Engines production sites, and ISO 50001 certification for its two-wheeler production site.
• 88% recyclability rate achieved for the MP3 125 Hybrid.

Social Achievements

• OHSAS 18001:2007 certification of the Indian VC plant.
• Implementation of an IT system to manage legal requirements in the field of H&S and audits of legal compliance.
• Global training session provided for talented individuals in the Piaggio Way program.
• Launch of the Piaggio Global Training platform for global management of the training process.

Governance Achievements

• Corporate Governance system conforming to principles in the Self-Regulatory Code of companies listed on Borsa Italiana SpA and to national and international best practices.
• Appointment of Risk Manager and Compliance Officer.
• No sanctions in place concerning non-compliance with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Reputational risk connected with stakeholder perception.
• Risks connected with the environment and health & safety.
• Risks connected with the development of environmentally compatible products.
• Risks connected with the sustainable supply chain.
• Risks connected with diversity.

Mitigation Strategies

• Excellent environmental, quality, and safety management systems at all production sites.
• Ongoing efforts to optimize energy management and reduce emissions.
• Investment in R&D for sustainable mobility and environmentally friendly products.
• Supplier audits to ensure adequate sustainability standards.
• Commitment to diversity and equal opportunities.

Supply Chain Management

Responsible Procurement

• Supplier audits to ensure quality and compliance.
• Code of Ethics and Guidelines for doing business signed by suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 - Core option

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, ISO 50001

Third-party Assurance: PricewaterhouseCoopers Advisory SpA

Sustainable Products & Innovation

• Piaggio Wi-Bike (electric bicycle)
• New iGet engines (reduced consumption and emissions)
• Hybrid and full electric products

Awards & Recognition

• Piaggio Vietnam awarded “Certificate of Merit” for health and safety activities.
• Aprilia RSV4 won “Sports Bike Of The Year” award.
• Aprilia win Stock 1000 FIM CUP.
• Piaggio scored 98/B in Carbon Disclosure Project (CDP) research.

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Product sustainability
• Environmental sustainability
• Social sustainability

Environmental Achievements

• Introduced new i-Get motors that further reduce fuel consumption and emissions while increasing performance
• 5% reduction of performance KPI by optimising energy management through the monitoring system at Pontedera plant.
• Reduction in methane consumption by changing the steam distribution network at Pontedera plant.
• Reduction in electricity consumption through the installation of power factor correction units at Pontedera plant.
• Reduction in electricity consumption through the replacement of compressors at Scorzè Plant.

Social Achievements

• Launched Piaggio Way, a young talent management program
• Implemented a global Customer Relationship Management platform
• Promoted Motoplex dealership model in every world market

Governance Achievements

• Updated Code of Ethics in 2015
• Established a Business Ethics Committee in 2008
• Adopted an Organisational Model for the prevention of corporate crimes pursuant to Legislative Decree no. 231/2001

Climate Goals & Targets

Environmental Challenges

• Risks arising from pollution and climate change
• Reputational risk
• Risk connected with a worsening of how stakeholders perceive the Group and its reputation, and loyalty to it.
• Risk connected with the environment and with health and safety
• Risk connected with potential negative environmental impact that may damage property or persons and expose the Group to sanctions, costs for compensation and reputational damage.
• Risk connected with the development of environmentally compatible products
• Risk connected with inadequate technological investments that are functional for sustainable mobility, for creating environmentally friendly products and an adequate technological level of products to meet new mobility needs of consumers and regulatory developments.
• Risk connected with the sustainable supply chain
• Risk connected with the use of suppliers or subsuppliers that do not meet adequate standards of sustainability, in line with the Group’s sustainability strategy.
• Risks connected with diversity

Mitigation Strategies

• Excellent environmental, quality and safety management systems at all its production sites.
• Ongoing dialogue with stakeholders
• Implementation of Suppliers Portal
• Vendor Rating Campaigns
• Appropriate conduct guidelines to prevent incidents of corruption
• Investments into R&D of innovative products that are abreast of any restrictions of current regulations.

Supply Chain Management

Responsible Procurement

• All suppliers sign the Piaggio Group’s “Code of Ethics”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 - Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: PricewaterhouseCoopers Advisory SpA

Sustainable Products & Innovation

• Piaggio Wi-Bike
• Electric Vespa

Awards & Recognition

• Compasso d’Oro Honorable Mention for Vespa 946
• 2016 Motorcycle of the Year awards from Motorcycle.com for Aprilia Tuono 1100 V4 and Aprilia RSV4 RR/RF
• 2016 Scooter of the Year award from Motorcycle.com for Vespa GTS 300 Super ABS
• Inclusion in the Climate “B” List of the CDP Climate Change Report 2016
• CORPORATE ART AWARDS for “Best involvement of Social Media” for Piaggio Foundation
• 2016 Scooter of the year award from CNBC India for Aprilia SR 150
• 2016 Motorcycle of the Year award from Australian Motorcycle Magazine for Aprilia Tuono 1100 RF

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Product sustainability
• Environmental sustainability
• Social sustainability

Environmental Achievements

• Reduction in methane consumption through changes to the steam distribution network at Pontedera Plant
• Reduction in electricity consumption through the installation of power factor correction units at Pontedera Plant
• Reduction in electricity consumption through the replacement of compressors at Scorzè Plant
• Removal of asbestos roofs completed at Mandello Plant
• Significant reduction in VOCs emitted (-58.6%) at Pontedera scooter painting plant

Social Achievements

• Updated technical skills of the R&D professional family according to the current organizational structure and the technological innovations available
• Updated digital skills following results of the assessment of the CRM Digital project
• Implementation of the BBS (Behaviour Based Safety) programme
• Implementation of software that allows storage of and access to the Safety Data Sheets for the products and chemicals used in the Italian offices
• Piaggio Way Global Training Event session held, including cross-functional working team projects

Governance Achievements

• Updated Code of Ethics to include a new article specifically dedicated to safeguarding human rights, with a focus on preventing “modern slavery”
• Updated Organisational Model pursuant to Legislative Decree no. 231/2001 to incorporate recent regulatory reforms
• No incidents of corruption occurred in the reporting year
• No infringement procedures filed against the Piaggio Group for the breach of anti-competitive or anti-trust laws

Climate Goals & Targets

Environmental Challenges

• Historical contaminants found at various sites requiring land reclamation and decontamination activities
• Reduction in production volumes at some Italian sites
• Changes in national conversion parameters for indirect CO2 emissions at Baramati plant

Mitigation Strategies

• Optimizing the management of existing sites to limit energy consumption
• Improved management of heating systems at Italian sites
• Use of biodiesel (obtained from vegetable oils) at Baramati plant

Supply Chain Management

Supplier Audits: Regular audits conducted on direct material suppliers

Responsible Procurement

• Suppliers sign Piaggio Group’s Code of Ethics
• Vendor rating campaigns

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 - Core option

Certifications: ISO 9001, ISO 14001, BS OHSAS 18001, ISO 50001 (India)

Third-party Assurance: PricewaterhouseCoopers Advisory SpA (limited assurance)

UN Sustainable Development Goals

• Goal 3: Health
• Goal 5: Gender equality
• Goal 8: Economic growth
• Goal 9: Industrial innovation
• Goal 11: Sustainable cities
• Goal 12: Sustainable consumption

Piaggio's activities contribute to these goals through various initiatives related to health and safety, gender equality, economic growth, sustainable mobility, sustainable cities, and sustainable consumption and production.

Sustainable Products & Innovation

• Vespa Primavera Elettrica and Vespa Primavera X (electric powertrains)
• Wi-Bike (electric pedal-assisted bike)
• iGet 4V Water engines
• Ape City BSIV and Ape 501 BSIV (3-wheel vehicles)
• Porter 700 BSIV (4-wheel vehicle)

Awards & Recognition

• MITX Awards 2017 (Piaggio Fast Forward)
• TOP INNOVATIVE COMPANY (Aprilia)
• Ranked among the 100 most innovative companies by Disruptor Daily (Piaggio Fast Forward)
• FIM Open Endurance World Championships (Aprilia RSV4)
• Included in the Climate “A-” List of the CDP Climate Change Report 2017
• Financial Statements Oscar 2017
• Premio Bilancio Sociale (Environment)
• GOOD DESIGN® AWARDS 2017 (Piaggio Fast Forward)

Environmental Metrics

ESG Focus Areas

• Supporting local communities
• Climate change
• Product innovation
• Creation of economic value
• Waste handling
• Conserving water resources
• Customer Satisfaction
• Developing human resources
• Product safety and reliability
• Respect for human rights
• Health and Safety
• Responsible management of the supply chain
• Business integrity

Environmental Achievements

• Reduced Scope 1 emissions at the Pontedera plant by 56.2% from 1998 to 2022
• Reduced Scope 3 category 11 emissions by 29.4% from 2008 to 2022 on the Vespa 125cc
• Vespa GTS 300 ABS E5 recyclability of 89.7% and recoverability of 97.9%
• New Porter NP6 SW LPG SR 2,12T recyclability of 89.5% and recoverability of 98.9%

Social Achievements

• 88,178 hours of training provided in 2023
• Accident frequency index remained at the physiological minimum level in all plants in 2023
• Donated €200,000 to the Civil Defence of Emilia-Romagna
• Donated €250,000 to the “Restart Fund” set up by the Municipality of Pontedera
• Renewed charity initiative supporting disabled children with a donation of €20,000

Governance Achievements

• Board of Directors consists of 9 members, 4 of whom are women (44%)
• Adopted a specific governance structure inspired by international best practices
• Adopted a Manual for the drafting of the NFS
• 10% of executive directors’ remuneration linked to sustainability targets and results

Climate Goals & Targets

Environmental Challenges

• Climate change transition risks (market demand shift towards lower emission vehicles, stricter regulations)
• Physical risks from extreme climate events (earthquakes, typhoons, flooding)
• Potential product failures
• Service quality not in line with customer needs
• Supplier non-compliance with ESG principles
• Human rights violations
• Corruption

Mitigation Strategies

• Decarbonisation Plan (2030 and 2050 targets)
• Continuous facility renovation and insurance coverage
• Quality Control system, supplier sourcing based on technical standards, ISO 9001 certification
• Contractual compliance with standards, performance monitoring
• Supplier audits, Code of Ethics, general supply conditions
• Code of Ethics, Whistleblowing Policy, reporting channels
• Code of Ethics, Compliance Programme (Organisational Model), training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Ethics, general supply conditions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Increased demand for electric vehicles

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance engagement)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Vespa Elettrica, Piaggio 1, Ape Elettrica, Porter Electric

Awards & Recognition

• Corporate Heritage Art Award