E1-3 Actions and Resources in Relation to Climate Change Policies

[E1-3.28] [MDR-A 68a, 68b, 68c, 68d, 68e] [E1-3.29a, 29b] [E1-4.34f] [AR 30a, 30b] Reducing emissions and sustainable energy solutions play a major role in our transformational path to meet society’s energy needs. To prevent and wherever applicable mitigate the impacts and risks identified for E1 Climate Change, OMV has defined the following key actions. By increasing zero-carbon sales, using more recycled and sustainable feedstock, implementing Carbon Capture, Utilization, and Storage (CCUS), and improving operational efficiency, we address the negative impacts related to emissions from our operations and products sold, as well as the low energy efficiency within our operations. These efforts help mitigate the high emissions and significant energy consumption in continued operations and business activities under the current business model. This has a positive impact on reducing GHG emissions through the energy transition, supporting society’s shift from a linear to a circular economy by offering diversified products with a reduced carbon footprint, and gradually moving away from fossil fuels toward achieving a net-zero business by 2050.

Innovation is a key element in OMV’s implementation of its Strategy 2030 and critical to the transformation of the value chain from a linear to a circular model. OMV is always looking for innovative solutions to optimize operations, evaluate business opportunities, and develop new business models to make OMV a sustainable company. The key actions listed in the table build on OMV’s existing expertise as well as on the latest available technologies, which are central to OMV’s implementation of its Strategy 2030 and achieving our GHG emissions reduction targets.

ESRS E1-3 – Actions and Resources in Relation to Climate Change Policies

 

Key action​ (Summary of individual actions requiring individual CAPEX of EUR ≥5 mn for their implementation)

Status

Expected outcome​

Contribution to policy objective/​target

Scope

Time horizon​

Remedy

Progress

CAPEX 2024

CAPEX 2025–2029

Related IROs​

Achieved GHG reduction, mn tCO2e (2024 vs. base year 2019)

Planned GHG reduction, mn tCO2e (2030 vs. base year 2019)

Decarbonization lever​

 

 

 

 

 

 

 

 

EUR bn

 

Increase in zero carbon sales

Electricity generation from PV and wind, generation of heat/cooling from waste

Actual & planned

Increase in zero carbon energy sales contributing to reduction of the carbon intensity of the energy supply.

Contributes to strategic pillar targets 2030 to ‘Become a leading European producer of sustainable fuels’; Scope 3 reduction target and Carbon intensity energy supply target; key initiatives undertaken to achieve the targeted reductions by 2030; increase in zero-carbon energy sales: significant increase in sustainable and renewable biobased fuels, green gas sales, and build-up of photovoltaic electricity capacity as well as geothermal energy.

Own Operations

Mid-term

n.a.

Assessment, Execution

0.4

9.2

E1-1, E1-2, E1-7, E2-9

No absolute GHG impact, but contribution to reduction of carbon intensity of energy supply

Geothermal activities

Actual & planned

Mid- to long-term

Assessment, Execution

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E2-9

Infrastructure enabling low-carbon transport

Actual & planned

Increase in biobased zero-carbon energy sales contributing to reduction of the carbon intensity of the energy supply.

Short- to long-term

Assessment, Execution, Completion

Manufacture of biogas and biofuels

Actual

Short- to mid-term

Execution, Completion

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E5-1, E2-9

Sustainable fuels and feedstock, e-fuels

Actual & planned

Increase in renewable zero-carbon energy sales.

Short- to long-term

Assessment, Execution, Completion

 

Manufacture of hydrogen

Actual

Mid-term

Execution

E1-1, E1-2, E1-7

Increase in recycled and sustainable feedstock

Manufacture of organic basic chemicals

Actual & planned

Reduction of GHG (Scopes 1 & 2) and Scope 3 emissions.

Supports OMV’s target strategic 2030 to increase renewable chemical feedstock production capacity and to increase equity product and third-party product sales of sustainable polyolefins and other chemicals to enhance the circular economy; also contributes to: GHG Scopes 3 target (and to some extent GHG Scope 1 & 2 target).

Own Operations

Mid- to long-term

n.a.

Assessment, Execution

0.5

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E5-1

0.0

1.0

Manufacture of plastics in primary form

Actual

Increase recycling capacity to increase sales volumes of sustainable polymers. Reduction of GHG (Scope 1 & 2) and Scope 3 emissions. Adopting a circular economy will greatly diminish GHG emissions. Circular products made from renewable input or recycled plastic waste generate lower emissions than products made from primary fossil fuel.

Contributes to OMV’s strategic pillar to grow sustainable products, the ambition to establish a leading position in circular economy solutions and the aim to increase sales volumes of sustainable base chemicals and polymers to up to 1,400 kta by 2030: based on renewable and recycled feedstock; also contributing to GHG Scope 3 target (and, to some extent, to the GHG Scope 1 & 2 target).

Mid-term

Execution

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E5-1, E5-3, E5-5, E5-6

Mechanical recycling and plastic waste processing

Actual & planned

Short- to long-term

Assessment, Execution, Completion

Chemical recycling

Planned

Long-term

Assessment

Close to market research, development, and innovation

Actual & planned

Short- to long-term

Assessment, Completion

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E5-1, E5-5, E5-6

CCS/CCU

Carbon Capture and Storage (CCS)

Planned

Reduction of CO2 emissions released into the atmosphere through storage underground in geological formations. This process helps mitigate climate change by preventing large amounts of CO2 from contributing to global warming.

Contributes to OMV’s strategic pillar to “Reduce fossil production and processing”; contribution to strategic target 2030; OMV is aiming for a total capacity of around 3 mn t p.a. by 2030; contribution to Scope 1 & 2 reduction target, Scope 3 reduction target and carbon intensity energy supply target.

Own Operations

Mid- to long-term

n.a.

Assessment

0

E1-1, E1-2, E1-3, E1-5, E1-6, E1-7, E5-4

0.0

3.0

Improve operational efficiency

Energy efficiency programs

Actual & Planned

Reduction of energy consumption and improving energy efficiency in operations. Energy efficiency result in lower GHG Scope 1 & 2 emissions and enhanced sustainability.

Strategic target for 2030 and contribution to Scope 1 & 2 reduction target and carbon intensity of energy supply target.

Own Operations

Short- to long-term

n.a.

Assessment, Execution, Completion

0.1

E1-1, E1-7, E2-9

1.5

2.9

Other Scope 1 & 2 reductions

Actual & Planned

Improving operational efficiency resulting in lower GHG Scope 1 & 2 emissions and enhanced sustainability.

Mid- to long-term

Assessment, Execution

 

Electricity generation from PV, wind, and waste heat

Actual & Planned

Reduction of Scope 1 & 2 emissions through production and use of renewable electricity. Improving operational efficiency resulting in lower GHG Scope 1 & 2 emissions and enhanced sustainability.

Short- to long-term

Assessment, Execution, Completion

 

[MDR-A 69b] [E1-3.29c-i] In 2024, the implementation of key actions related to E1 Climate Change required of EUR 1,046 mn. For OMV’s total CAPEX and its reconciliation to the investments shown in the cash flow statement, refer to the chapters Capital Expenditure (CAPEX) in the Directors’ Report and Consolidated Statement of Cash Flows in the Consolidated Financial Statements. [MDR-A 69b] [E1-3.29c-ii] Of the total 2024 CAPEX for implementing key actions, 71% is EU Taxonomy-aligned. Of the total planned CAPEX for implementing key actions between 2025 and 2029, 60% will likely be EU Taxonomy-aligned and part of the EU Taxonomy CAPEX plan. For details, see EU Taxonomy.

[MDR-A 69a] OMV seeks to align its long-term funding policy with the Company’s sustainability strategy. For this reason, OMV is assessing opportunities of sustainable financing and sustainability-linked funding, which links the cost of a financing instrument to the achievement of specific strategic sustainability targets. A first step toward sustainable financing was taken in 2021 with a green loan for the ReOil® 2000 chemical recycling plant in Schwechat, Austria. This loan was issued in alignment with the green loan principles and is based on a project-specific green financing framework and a second party opinion. For the implementation of other key actions included in the table above, no sustainable finance instrument is currently outstanding.

[E1-3 AR 21] OMV has a strong cash position (around EUR 5.8 bn reported as of the end of Q3/24). Furthermore, it typically relies on debt capital markets as its main funding source due to their efficiency, liquidity, and the availability of long(er) tenors. It aims for a broad diversification of its investor base and its funding sources and wants to maintain a balanced debt maturity profile. OMV targets efficient financing while at the same time ensures that its funding measures support its investment-grade credit rating and its long-term leverage ratio target (12% reported at the end of Q3/24). OMV also maintains committed and uncommitted bank lines to cover short-term cash flow fluctuations. Structures that enable OMV to optimize working capital complement the palette of funding tools. Funding of future growth and the transformation process will mainly rely on a mixture of operating cash flows, contributions from further cost optimizations, and disposals. Any additional financing can be raised via the set of tools depicted above, in line with the cash flow profile of the investment as well as OMV’s financial priorities and long-term targets. Hybrid capital will also remain a solid pillar of our capital structure in the long term.

Progress on Specific Key Actions

Increasing Zero-Carbon Products

Scaling up zero-carbon and renewable energy product sales while reducing fossil fuel sales is crucial for reducing the carbon footprint of our energy supply. These products include biofuels, electricity, waste heat, and emerging options like geothermal heat.

In our Energy division, the Low Carbon Business (LCB) team is active in the fields of geothermal energy and renewable power solutions. Over the past few years, initiatives in these areas have gained considerable momentum. Currently, many of these projects are in the assessment or initial investment stage, with plans to increase the level of investment after 2027.

We are working with Wien Energie in a joint venture called “deeep” to develop deep geothermal plants in the greater Vienna area. The first plant will be in Aspern, northeast of Vienna. The plant will have a capacity of 20 MW in combination with heat pumps. This capacity will be enough to supply around 20,000 households. Drilling of the first deep geothermal well started in December 2024. The wells will reach depths of over 3,000 meters to use the hot formation water for heat generation. The first geothermal plant of deeep will serve as the basis for the further expansion of geothermal energy in Vienna. Overall, OMV and Wien Energie want to develop up to seven geothermal plants with a capacity of up to 200 MW as part of a field development. This will enable the production of climate-neutral district heating for the equivalent of up to 200,000 Viennese households.

In our Fuels & Feedstock (F&F) division, we contribute to developing a sustainable energy system by identifying and maturing innovative solutions, especially for markets that are difficult to electrify with batteries and for customer segments like heavy road transport or air travel. These markets share a need for energy-dense, climate-friendly fuels with minimal downtime. Our portfolio promotes waste-based and advanced biofuels, hydrogen, and e-fuels, leveraging synergies with existing refinery assets and expertise in scalable and feasible green technology rollouts. The successful execution of these projects will lower our overall emissions, create innovative and sustainable products and services for society, and differentiate OMV as a leader in the green energy transition.

In June 2024 OMV, started up the coprocessing plant at the Schwechat refinery, where up to 160,000 t of liquid biomass per year will be converted into a high-quality renewable diesel blending component. Almost EUR 200 mn was invested and savings generated by the produced renewable fuel are around 360,000 t CO2e.

Also in June 2024, OMV Petrom made the final investment decision to build a plant for sustainable aviation fuels (SAF) and renewable diesel () and two plants to produce green hydrogen, which will be used in the production of biofuels. Starting in 2028, OMV Petrom plans to supply around 250 kt/a of sustainable fuels. In the same month, OMV Petrom signed a new acquisition for photovoltaics projects in Romania and expanded its partnership with Renovatio through the acquisition of a 50% stake in renewable energy projects totaling 130 MW.

OMV is recovering waste heat in its Schwechat refinery and delivering it to Vienna Airport and Wien Energie. A total of 836,446 MWh was delivered in 2024.

In 2024, OMV’s Chemicals division continued to invest in its ReOil® technology and Borealis’ mechanical recycling processes to broaden the range of applications where recycled plastics or renewable feedstocks can be used as input sources, with a focus on waste supply, sorting, and treatment. Furthermore, Borealis invested in the cracker furnaces of its olefin unit in Porvoo, Finland, to increase the use of renewable and recycled raw materials in base chemicals production.

In our Retail business, OMV successfully continued its electromobility journey and implemented a full operating system including CPO (Charge Point Operator), eMSP (eMobility Service Provider), and app modules in Austria, Hungary, Romania, and Slovakia. In addition, in May OMV Petrom successfully finalized its acquisition of Renovatio Asset Management, the leading EV charging company in Romania. By the end of 2024, OMV was operating 804 (2023: 292) high-performance charging points. For an overview of where these charging stations are located, see Fields of Activity.

Carbon Capture and Storage

OMV aims to store around 3 mn t of CO2 per year by 2030. Together with Aker BP, we hold the Poseidon license to store CO2 in the Norwegian North Sea (OMV Norge 50%). The project has the potential for over 5 mn t of CO2 to be stored annually. We intend to use the site as storage for CO2 captured from various industrial plants across northwest Europe, including from Borealis’ European facilities. A 3D seismic survey was successfully carried out in late 2023. By 2025/26, a drill-or-drop decision will be made. In partnership with Vår Energi (operator) and Lime Petroleum AS, we were awarded a second CO2 storage license in 2024 (OMV Norge 30%). The license, called Iroko, is located in the central Norwegian North Sea and can store around 215 mn t of CO2, with the injection capacity expected to exceed 7.5 mn t of CO2 per year.

In June 2024, OMV Petrom started testing an innovative capture and utilization technology at the Petrobrazi refinery. The testing of the new technology is part of a demonstration campaign carried out in three countries – Denmark, Romania, and Greece – as part of an innovation project financed by the European Commission through the Horizon 2020 program.

Energy Efficiency Measures

Effective carbon and energy management helps reduce GHG emissions and associated liabilities, thus lowering environmental costs, boosting financial savings through energy efficiency, and ensuring regulatory compliance. Government authorities require compliance with EU Emissions Trading System (EU ETS) regulations, national implementations of the EU Energy Efficiency Directive, and mandatory energy audits every four years. OMV’s comprehensive approach to managing GHG emissions is embedded within OMV’s strategy formulation and implementation. It is based on GHG and energy accounting and reporting, inventory management, audits, assessment plans, and training for employees.

Energy efficiency measures in OMV operations are closely linked with technical improvements directed at reducing energy use while achieving the same operational output. Process optimization and increasing energy efficiency to reduce costs and CO2 emissions are also a priority at our refineries. At the Burghausen refinery, a project was implemented in 2024 to use the waste steam condensate stream from the Metathesis plant to heat the cooler steam condensate from the crack-gas compressor, increasing the energy efficiency of the process and resulting in an annual reduction of approximately 1,000 t CO2e.

The potential for reducing energy use is identified through annual campaigns aimed at improving environmental performance, including through energy consumption. We set targets for refineries to achieve specific energy intensity index ratings, which are monitored yearly. Based on these ratings, we pinpoint areas for energy efficiency improvements and decide on measures to reduce consumption as part of our environmental governance.

Borealis accounts for 20% of OMV’s energy consumption and views energy efficiency as crucial to its climate strategy, aiming for a 10% reduction from 2015 levels by 2030. Joint facilities in Schwechat and Burghausen have initiatives to increase synergies, such as replacing the Schwechat refinery’s boiler feed water with cheaper, colder, fully desalinated water, resulting in energy and CO2 savings.

Phasing Out Routine Flaring

[MDR-A 68a, 68b, 68c] During oil production, associated gas is produced alongside the oil. While much of this gas is utilized, some is flared due to technical or economic constraints, releasing greenhouse gases like CO2 and methane. Around 1% of OMV’s total direct GHG emissions and around 6% of OMV Energy’s direct GHG emissions result from routine flaring. In 2017, OMV voluntarily endorsed the World Bank’s “Zero routine flaring by 2030” initiative. Existing sites where the routine flaring of associated and free gas still occurs are required to develop a phase-out plan to eliminate legacy routine flaring as soon as possible, but no later than 2030. New production sites are developed with the appropriate gas utilization solutions in place and without routine flaring. We report to the World Bank on our progress on this initiative annually. All OMV operations are also required to minimize methane emissions from point sources, as well as fugitive emissions and technically avoidable emissions (such as those from well testing and well workover, among other events). In 2024, we routinely flared 32,914 thousand m3 of associated gas. [MDR-A 68e] Since 2017, we have reduced routine flaring amounts by 77%.

Fugitive Emissions Monitoring and Leak Detection and Repair

[MDR-A 68a, 68b, 68c] OMV systematically monitors and controls fugitive methane emissions and other non-methane volatile organic compounds (NMVOCs) through Leak Detection and Repair (LDAR) programs. Routine audio, visual, and olfactory inspections, along with soap bubble testing and optical gas imaging, are used for leak detection. Advanced methods such as infrared cameras and collaborations with third parties using drones, satellite data, and acoustic leak imaging enhance monitoring efforts.

Leaks are repaired promptly based on prioritization and risk assessments. Key initiatives include the pipeline integrity program and modernizing facilities like compressor stations. OMV implements programs in both upstream (OMV Energy) and downstream (OMV Fuels & Feedstock) sectors to address fugitive emissions. LDAR programs in OMV Energy align with the GHG Management Framework, the OGMP 2.0 Framework, and the UN program for the reduction of methane emissions, which OMV joined in April 2024. An internal LDAR team in OMV Austria uses advanced technologies for regular site screenings, while OMV Petrom’s internal LDAR program covers over 300 facilities, focusing on methane screening and leak mitigation. Global and local methane management programs, including Ops CH4llenge at OMV Petrom, prepare operations for new methane detection, measurement, and reporting requirements.

Sourcing Renewable Energy for Operations

[MDR-A 68a, 68b, 68c] OMV is increasingly turning to renewable sources of electricity to power our operations. One approach is purchasing renewable energy, which subsequently reduces our Scope 2 emissions. For instance, electricity contracts for our refineries in Schwechat and Burghausen stipulate that 50% of purchased electricity must come from renewable sources. In 2024, 53% of the purchased electricity at the Schwechat refinery and 75% at the Burghausen refinery, including tank farms and pumping stations, came from renewable sources. All electricity purchased by OMV’s Austrian filling stations and the head office is obtained from renewable sources. For OMV’s refineries and the AWP, the electricity contracts are generally spot-indexed and contracted on a one- to three-year basis. Commodity pricing risk is managed using financial risk instruments.

OMV will continue to increase the sourcing of renewable electricity to power our operations. To reduce our Scope 2 emissions and achieve Borealis’ target of sourcing 100% renewable electricity by 2030 (status 2024: >50%), OMV has continued to establish several Power Purchase Agreements (PPAs) for long-term renewable electricity sourcing, securing the necessary electricity and utilities for production processes. OMV plans to increase our renewable electricity sourcing by an additional 580–780 GWh per year through more PPAs and solar power investments. In the Chemicals segment, which consumes the most energy, our goal is to ensure all purchased electricity is renewable by 2030. In 2024, electricity purchased in Chemicals accounted for 2,731 GWh (2023: 2,771 GWh), approximately 73% (2023: 73%) of OMV’s total electricity purchased. Where local regulations allow, OMV also plans to produce renewable energy and feed it into the grid for third-party use, with potential evaluations ongoing in our operational countries.

In 2024, OMV concluded Power Purchase Agreements (PPAs) with VERBUND and ImWind and secured an annual purchase of 67 GWh of sustainable electricity. This volume corresponds to the annual power consumption of around 16,000 households. With this supply of green energy, OMV will be able to cover over 35% of the external electricity requirements of the Schwechat refinery and the AWP. This enables OMV to reduce its carbon footprint and accelerate the use of renewable energy sources. In Germany, OMV has partnered with Statkraft, one of Europe’s largest renewable energy producers. This five-year agreement will see OMV sourcing 73 GWh of wind power annually to decarbonize its operations in Germany. In addition, Borealis entered into long-term PPAs with Finnish energy companies Fortum and Axpo Nordic, a subsidiary of Switzerland’s largest renewable energy provider, to source renewable energy from onshore wind parks. Starting in mid-2024, Borealis will receive 800 GWh of renewable power from Fortum over eight years to support its production operations in Porvoo, Finland. Additionally, Borealis will receive more than 130,000 MWh of wind power annually from Axpo Nordic for its production location in Stenungsund, Sweden, over the next ten years. This electricity will be generated by the new Hultema onshore wind farm in central Sweden, with delivery having commenced in January 2024.

Borealis’ Actions to Manage Impacts, Risks, and Opportunities for Climate Change Adaptation

[E1-3.28] [E1-3 AR 19d] [MDR-A 68a, 68b, 68c] Borealis has initiated a program on climate change adaptation. This program began with an initial high-level desk exercise for all of Borealis’ assets to identify locations with significant risks. A more in-depth desk analysis will be delivered in 2025, resulting in an overview of the locations where climate change poses a significant physical risk to Borealis’ assets.

CAPEX
Capital expenditure
GHG
Greenhouse gas
HVO
Hydrotreated vegetable oil
LDAR
Leak Detection and Repair

Topics filter

Results