We are committed to building a sustainable world worth living in – for everyone. Sustainability and circularity lie at the center of our Group strategy. We aim to become a net-zero-business by 2050, accelerate the energy transition, and proactively expedite the transition from a linear to a circular economy. We build positive relationships with our employees, communities, suppliers, and other stakeholders, including by addressing social and economic effects of the transition to an environmentally sustainable economy. Our Sustainability Framework is built around the three pillars Environmental, Social, and Governance (ESG).
Our Strategy 2030 is underpinned by this sustainability framework, with all business decisions being informed by our ambition to become a net-zero business. Within this sustainability framework, we have established five strategic focus areas: Climate Change; Natural Resources Management; Health, Safety & Security; People; and Ethical Business Practices. For each of these focus areas, we have formulated concrete commitments, targets, and actions to be achieved by 2030, which mark OMV’s contribution to the UN 2030 Agenda for Sustainable Development.
Our target & commitments in detail
- OMV continuously improves the carbon efficiency of its operations and product portfolio. OMV is fully committed to supporting and accelerating the energy transition, and aims to become a net-zero business by 2050 or sooner.
- Reduce carbon intensity of operations (Scope 1) by ≥30% vs. 2010
- Reduce carbon intensity of product portfolio (Scope 3) by >6% vs. 2010
- Achieve at least 1 m t CO2 reductions from operated assets in 2020–2025
- Achieve an E&P methane intensity of 0.2% or lower
- Reduce Scope 1 and 2 emissions by ≥30% vs. 2019
- Reduce Scope 3 emissions by ≥20% vs. 2019
- Reduce carbon intensity of energy supply by ≥20% vs. 2019
- Achieve an E&P methane intensity of 0.1% or lower
- Zero routine flaring and venting of associated gas as soon as possible, however, no later than 2030
- Reduce Scope 1 and 2 emissions by ≥60% vs. 2019
- Reduce Scope 3 emissions by ≥50% vs. 2019
- Reduce carbon intensity of energy supply by ≥50% vs. 2019
- OMV is fully committed to taking action on responsible natural resources management and will proactively expedite the transition from a linear to a circular economy.
- OMV aims to minimize environmental impacts by preventing water and soil pollution, reducing emissions, efficiently using natural resources, and avoiding biodiversity disruption.
- Triple volume of recycled polyolefins to 350 kta
- Increase waste reuse and recycling from operations
- Reduce freshwater withdrawal
- Produce approx. 2,000 kta sustainable (includes recycled and biobased) polyolefins
- Reduce natural resources use by cutting oil and gas production levels to below 400 kboe/d and by reducing crude distillation throughput by 2.6 mn t
- Increase reuse and recycling of waste from operations
- Reduce freshwater withdrawal
- Health, safety, and security have the highest priority in all activities. OMV is fully committed to proactive risk management in realizing its HSSE vision of “ZERO harm – NO losses.”.
- Achieve a Total Recordable Injury Rate (TRIR) of around 1.0 per 1 mn hours worked
- Achieve zero work-related fatalities
- Maintain leading position in Process Safety Event Rate
- Stabilize the Total Recordable Injury Rate (TRIR) at below 1.0 per 1 mn hours worked
- Achieve zero work-related fatalities
- Maintain leading position in Process Safety Event Rate
- OMV is committed to building and retaining a talented expert team for international and integrated growth. We embrace our difference(s) and use our diversity of thought and experience as a catalyst for growth and creativity.
- OMV is committed to ensuring fair treatment and equal opportunities for all employees, and has zero tolerance for discrimination and harassment of any kind.
- As a signatory to the United Nations Global Compact, OMV is fully committed to the UN Guiding Principles on Business and Human Rights, and aims to contribute to the UN’s 2030 Agenda for Sustainable Development by pursuing a social investment strategy that addresses local needs and the SDGs.
- OMV is committed to contributing to a Just Transition for our employees and communities, and addressing social and economic effects of the transition to an environmentally sustainable economy.
- Increase share of women at management level to 25%
- Keep high share of executives with international experience at 75%
- Train all OMV Group employees in human rights
- Assess Community Grievance Mechanism of all sites against UN Effectiveness Criteria
- Increase share of women at management level to 30%
- Min. 20% female Executive Board members (stretch target 30%)
- Increase share of international management to 65%
- Keep share of executives with international experience at 75%
- Increase average number of annual learning hours to a min. of 30 hours per employee
- Increase support for employees with disabilities at our main locations
- Conduct Human Rights Assessment in high-risk country business for all OMV Group operations and develop action plans every five years
- Direct at least 1% of Group investment per year toward social goals (based on previous year’s reported net income attributable to stockholders of the parent) by 2030
- OMV strives to uphold equally high ethical standards at all locations. We aim to earn our stakeholders’ confidence by implementing a high standard of corporate governance and by maintaining high standards of transparency and predictability.
- OMV is committed to implementing sustainable procurement, which means caring about the environmental, social, and economic impacts of the services and goods the Company intends to purchase.
- Be an active member of TfS and run sustainability evaluations for all suppliers covering >80% of Procurement spend
- Engage with suppliers covering 80% of Procurement spend and assess their carbon footprint as a foundation to define and run joint low-carbon initiatives
- Promote awareness of ethical values and principles: conduct in-person or online business ethics trainings for all employees
- Extend sustainability evaluations to all suppliers covering 90% of Procurement spend
- Ensure all suppliers covering >80% of Procurement spend have carbon reduction targets in place
OMV recognizes climate change as one of the most important global challenges and fully supports the goals set forth by the Paris Climate Change Agreement. OMV integrates risks and opportunities related to climate change impacts into the development of the Company’s business strategy and the planning of operational activities. In this regard, OMV continuously improves the carbon efficiency of its operations and product portfolio, and is fully committed to supporting and accelerating the energy transition. We aim to become a net-zero business by 2050 or sooner.
OMV implements measures aimed at optimizing its operational processes, increasing energy efficiency, reducing flaring and venting, and reducing methane emissions through leakage detection and improvement of asset integrity. We will continue phasing out routine flaring and venting as soon as possible, but no later than 2030, as part of OMV’s commitment to the World Bank’s “Zero routine flaring by 2030” initiative. For instance, in Yemen, one of our most flaringintense operations, we commissioned two gas engines for power generation at the central processing facilities in December 2021. The gas engines will support the reduction of flaring as they will consume gas which was previously flared. They will also replace diesel generators, which further reduces GHG emissions. We are also increasingly turning to renewable sources of electricity to power our operations. In 2021, Borealis installed its first solar photovoltaic rooftop array for generating electricity for production purposes at the Borealis plant in Monza (Italy). The company has also signed long-term renewable energy supply deals for its assets in Sweden and Belgium.
A cornerstone of our climate strategy is increasing the share of zero-carbon products in our product portfolio as well as decreasing fossil fuel sales. Oil and gas production will be decreased to below 400 kboe/d by 2030.
OMV focuses on high-quality refinery products such as low-emission premium fuels and feedstocks for the chemical industry. We aim to increase polyolefins recycling and gradually replace fossil polyolefins production with production from biogenic feedstock. In addition, we also plan to significantly increase sustainable and biobased fuels and green gas sales, as well as build up renewable electricity production to around 10.0 TWh (including geothermal, solar/wind). We aim to step up the production of renewable fuels and sustainable chemical feedstocks to approximately 1.5 m t per year, including producing and marketing at least 700,000 t of sustainable aviation fuels per year.
For instance, OMV and Austrian Airlines (AUA) are producing and using regional Sustainable Aviation Fuel (SAF) in Austria. The two companies agreed on the production and fueling of 1,500 t of SAF in the coming year 2022. The use of 1,500 t of SAF by Austrian Airlines will reduce carbon emissions by around 3,750 t. This is equal to the CO2 emissions of 333 Vienna–London flights with a typical short to medium-haul AUA aircraft (Airbus A320).
Our climate targets can only be achieved with considerable effort and capital allocation. OMV Group has earmarked investments of more than EUR 13 bn for this purpose. All business units will build on existing strengths and expertise in this transformation journey.
In 2021, OMV achieved an outstanding CDP Climate Change score of A– (Leadership) for the sixth time in a row. With its CDP Climate Change score, OMV is among 20 companies in the global oil and gas sector that achieved a leadership score and among the top 7 companies across all sectors in Austria.
Business principles & social responsibility performance
OMV is a signatory to the UN Global Compact and has a Code of Business Ethics in place that applies to all employees. Although we are headquartered in Austria - a country with high business ethics standards – we operate in several countries in the Middle East, North Africa, Asia-Pacific, and Central and Eastern Europe that are defined as high risk by the Transparency International Corruption Perception Index. We strive to avoid the risks of bribery and corruption that are specific to our sector. We also highly value our reputation. Therefore, our highest priority is ensuring uniform compliance with our business ethics standards wherever we operate. Compliance with ethical standards is a non-negotiable value that supersedes any business interest. Absolute commitment to this objective is embedded at all levels at OMV from top management to every employee. Our business partners are also expected to share the same understanding of and commitment to ethical standards. Every Company activity, from planning business strategy to daily operations, is assessed for compliance with ethical standards, such as the Code of Conduct and Code of Business Ethics.
A dedicated crossregional compliance organization ensures that OMV standards are consistently met across the Group. In 2021, 16,020 OMV Group employees were trained in business ethics. This number is composed of 9,020 e-learnings and 477 face-to-face trainings at OMV, and 5,996 CodeOne e-learnings and 527 in person trainings at Borealis. The Integrity Platform provides an anonymous whistleblower mechanism for OMV employees and external stakeholders, such as suppliers. They can use this platform to report issues relating to corruption, bribes, conflicts of interest, antitrust law, or capital market law. In 2021, the scope of the Integrity Platform was expanded, and the platform can now also be used to make reports of perceived violations in the following legal areas: public procurement, environmental protection, product and food safety and consumer protection, corporate tax regulations, and data protection.
Implementing sustainable procurement means caring about the environmental, social, and economic impacts of the goods and services the Company intends to purchase. OMV has a Code of Conduct in place that ensures that suppliers support OMV’s principles. It is of paramount importance to our organization to be fully compliant with all applicable legal requirements, as well as with our internal safety, environmental protection, and human rights standards while managing our supply chain. OMV has a process in place to ensure that parties sanctioned by the EU or international organizations, such as the United Nations, are not accepted as procurement partners.
To mitigate supply chain risks including forced labor, slavery, human trafficking, and corruption, OMV imposes the legal requirements and internal rules and standards applicable to OMV on its suppliers. Our suppliers and supply chain partners are obligated to sign and fully comply with the content of the Code of Conduct. In addition, our suppliers must accept the General Conditions of Purchase, which further detail our business standards (e.g., labor rights), as an integral part of our contractual agreements. OMV reserves the right to terminate relationships with suppliers if noncompliance is discovered or not addressed in a timely manner.
Supplier prequalification is a part of pre-contractual activities during which OMV collects information from a potential supplier for the purpose of evaluating compliance with our HSSE and other sustainability requirements. The goal of the prequalification process is to screen potential suppliers before bringing them on board or during the tender stage to ensure that only those suppliers who meet our HSSE and sustainability standards can be considered for future collaboration. Following prequalification, Procurement together with business representatives select the best suppliers based on a predefined set of commercial, legal, HSSE, and technical criteria during a tender process. In 2021, we started embedding sustainability elements into the evaluation matrix (e.g., technologically innovative elements, carbon emissions, energy efficiency KPIs) in several pilot projects.
OMV conducts supplier audits as part of the prequalification process and/or during contract execution. The aim of the audits is to measure the performance of our suppliers and define actions that will enable them to optimize their performance and meet OMV requirements. Among the focus areas of the audits are the financial stability of our suppliers, their strategy and organization, and the supply chain sustainability (e.g., human rights, carbon management, environmental management, certifications, and social responsibility). In 2021, we added a new cybersecurity dimension to our supplier audits. We also perform yearly subject-specific audits on topics such as process safety, quality, and efficiency.
In 2021, OMV joined Together for Sustainability (TfS) and expanded the membership held by Borealis since 2017 to Group level. Together for Sustainability, a joint initiative and global network of 34 chemical companies, sets the de facto global standard for environmental, social, and governance performance of chemical supply chains. The TfS program is based on the UN Global Compact and Responsible Care principles.
OMV aims to build on Borealis’ expertise and cover a broader range of ESG assessments of our suppliers in the coming years. Becoming a TfS member will help OMV to further embed sustainability in day-to-day business operations and cascade sustainability requirements in our supply chain.
We aim to continuously manage and decrease the carbon emissions of our purchased goods and services. For this reason, OMV became a CDP Supply Chain member in 2021. As part of CDP Supply Chain, OMV invited around 140 suppliers to answer the CDP Climate Change questionnaire in 2021. In addition to reporting their emissions, we asked the suppliers whether they have carbon reduction targets in place and invited them to share with us any initiatives or projects to reduce carbon emissions in which they would like us to participate. A total of 63% of suppliers assessed by CDP Supply Chain have declared that they have climate targets in place.
Human rights are universal values that guide our conduct in every aspect of our activities. Our responsibilities in the area of human rights include, but are not limited to, equality and nondiscrimination, decent wages, working hours, employee representation, security, primary healthcare, labor rights in the supply chain, education, poverty reduction, land rights, and free, prior, and informed consultation. OMV respects and supports human rights as described in the Universal Declaration of Human Rights and in internationally recognized treaties, including those of the International Labour Organization (ILO). We have been a signatory to the UN Global Compact since 2003 and are fully committed to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We fully support the aims of the UK Modern Slavery Act 2015 and are committed to operating our business and supply chain free of forced labor, slavery, and human trafficking. OMV considers human rights to be an important aspect of our risk management approach, which is integrated into our decisionmaking processes. OMV recognizes its responsibility to respect, fulfill, and support human rights in all business activities and to ensure that OMV does not become complicit in any human rights abuses as defined under current international law.
We conduct human rights risk assessments at country level to identify and assess ongoing and emerging human rights impacts and the resulting potential risks relevant to OMV business activities in the country in order to prevent and mitigate human rights risks and impacts. A total of 980 employees received training on human rights topics through the e-learning tool and in-person training sessions (2020: 2,304). As professional training is essential to ensure compliance with our human rights commitment, we have set ourselves the goal of training all employees in human rights topics by 2025. In addition, internal awareness campaigns on human rights were implemented. In 2021, seven incidents of human rights grievances were reported (2020: 0), related to aspects such as working hours and rest times and alleged cases of bullying, harassment, defamation, unfair treatment and disrespectful behavior.
OMV maintains an active partnership with local communities in all countries in which the Company does business and is committed to adding value to these societies. As part of OMV’s stakeholder dialogue, we have implemented community grievance mechanisms at all operating sites. In 2021, OMV registered 884 grievances (2020: 812) from the community grievance mechanisms. All of the grievances were handled in accordance with OMV’s localized Community Grievance Management (CGM) procedures, which stipulate a stringent approach to systematically receiving, documenting, addressing, and resolving grievances in all of the countries where we operate.
OMV has set the goal of aligning the CGM system at all sites with the effectiveness criteria of the United Nations Guiding Principles. We are striving to achieve this target by conducting assessments that include reviews of management processes and consultations with internal and external stakeholders. The assessments result in recommendations and tailored action plans to improve grievance management at site level. The action plans are implemented by local management and monitored by headquarters. The sites already assessed represent 99% of all registered grievances at OMV in 2021.
Further sustainability information