E1-1 Transition Plan for Climate Change Mitigation

[E1-1.16h] [E1-4.34 AR 31] To support OMV’s ambition of becoming a net-zero business by 2050, OMV has developed a transition plan. This plan is an integral part of the OMV Strategy 2030 and complemented by concrete short-, mid-, and long-term targets. OMV’s targets are set at both absolute and intensity levels, with the ultimate goal of achieving net zero greenhouse gas (GHG) emissions in Scopes 1, 2, and 3 by 2050. For Scopes 1 and 2, OMV is aiming for an absolute reduction of 30% by 2030 and 60% by 2040. For the defined categories in Scope 3, OMV is aiming for an absolute reduction of 20% by 2030 and of 50% by 2040. These absolute GHG emission reductions and the increase in zero-carbon energy sales are key in reducing the carbon intensity of our energy supply, pursuing a decline of 15–20% by 2030 and of 50% by 2040. These targets were set in 2021 and are approximated to the IEA’s Sustainable Development Scenario (SDS) for 2030. However, our target of achieving net zero emissions by 2050 is significantly more ambitious than the emission reduction pathway of the Sustainable Development Scenario. The base year 2019 is used for these targets, as it was the last full year before the COVID-19 pandemic and the majority of OMV’s assets were operating throughout that year.

[E1-1.16b] To achieve our targets, OMV is committed to taking climate action across various areas of operation, including our product and service portfolio, circular economy activities, innovations and R&D efforts, working environment, and social investments. Reaching our targets for 2030 and beyond will demand considerable effort from all our business units, leveraging our existing strengths and expertise.

The reduction in greenhouse gases (GHGs) will be achieved through several key initiatives:

• Decrease in fossil fuel and natural gas sales: significant decrease in fossil fuels and a less steep decline in natural gas sales.
• Increase in zero-carbon energy sales: significant increase in sustainable and biobased fuels, green gas sales, and build-up of photovoltaic electricity capacity, as well as geothermal energy.
• Increase in sales volumes of sustainable (renewable and recycled) chemicals and polymers to up to 1,400 kta by 2030.
• Improved energy and operational efficiency, and zero routine flaring and venting, thereby reducing methane emissions.
• All electricity purchases in the Chemicals segment will be sourced from 100% renewable energy.

In addition to these efforts, OMV plans to establish capacity of approximately 3 mn t per year of Carbon Capture and Storage (CCS) by 2030, which will help us achieve our GHG targets.

[E1-1.16d] [E1-4.34f] [E1-4.34 AR 30a] OMV has integrated potential transition risks related to locked-in emissions into its strategic risk management process, addressing financial and operational concerns tied to the transition to a sustainable economy. OMV’s emission reduction activities are categorized according to decarbonization levers, which are described below. These decarbonization levers group investments identified as part of OMV’s mid-term planning as contributing to the implementation of the OMV Strategy 2030 and achievement of its climate targets.

Decarbonization Measures to Meet OMV’s 2030 Climate Targets with the Ambition of Reaching Net Zero by 2050

Absolute net GHG Scope 1 and 2 emissions

[mt CO₂e]

Absolute net GHG Scope 3 emissions

[mt CO₂e]

Contribution of GHG Scope 1, 2, and 3 emissions reduction measures 2019-2030

Carbon intensity of energy supply, Scopes 1, 2, and 3

[g CO2e/MJ]

Contribution of reduction measures to g CO₂e/MJ 2019-2030

CAPEX in 2024 to achieve climate targets

[E1-1.16c] To support OMVs climate targets and Strategy 2030, the company plans to allocate an average yearly organic CAPEX of approximately EUR 3.8 bn between 2024 and 2030. Of this, 40–50% will be directed toward sustainable projects like geothermal, CCS, renewable electricity, mechanical and chemical recycling, and biofuels to achieve our ambitious decarbonization targets. Approximately 40% of the CAPEX for sustainable projects will be dedicated to OMV’s Energy segment, and 30% each to Chemicals and Fuels & Feedstock. [E1-1.16e] OMV also has a CAPEX plan in line with the EU Taxonomy to further expand Taxonomy-aligned activities. It is based on the latest Supervisory Board-approved business plan and adheres to the five-year maximum period for CAPEX planning as stipulated in annexes 1–5 of the Commission Delegated Regulation (EU) 2020/852. Planned CAPEX is subject to review and potential changes. The plan does not account for CAPEX planned for Taxonomy-eligible activities that were not claimed as Taxonomy-aligned since 2022, but which may align with Taxonomy criteria in the future, such as geothermal and Carbon Capture and Storage (CCS) activities. [E1 AR 4] The alignment of economic activities supports OMV’s transition to a sustainable economy. The Group has earmarked on average 40–50% of its organic investments for sustainable projects for the period 2024–2030. Over the mid-term plan period from 2025 to 2029, on average around 64% of the sustainable project investments are likely to be EU Taxonomy-aligned. A project is considered “sustainable” when it is either EU Taxonomy-aligned or it contributes to the achievement of OMV’s GHG targets as outlined in its Sustainability Framework. In 2024, OMV’s EU Taxonomy-aligned CAPEX represented an 18.7% share of total CAPEX, and this is likely to increase within the next five-year period to 29%. For more details, see EU Taxonomy. [E1-1.16f AR 5] [E1-1.16g] OMV is excluded from the EU Paris-aligned benchmarks. Significant CAPEX invested in 2024 in economic activities related to oil and gas amounted to EUR 2 bn.

Progress on Transition Plan Implementation

[E1-1.16j] OMV is actively progressing with the implementation of its transition plan. For details on progress on sustainability projects, see the chapter Key Actions. Additionally, in alignment with the energy transition, OMV has decreased its oil and gas production levels and reduced crude distillation throughput. This has been achieved through activities that include the divestment of Exploration and Production operations in Malaysia. OMV has improved its energy and operational efficiency, reducing absolute Scope 1 and 2 emissions by 23% compared to 2019. Scope 3 emissions have been reduced by 17% compared to 2019, driven by lower fossil fuel sales. OMV’s methane intensity continued decreasing to 0.2% in 2024, while there were also significant reductions in flaring and venting. To achieve this progress, OMV invested EUR 1 bn in 2024. These investments primarily focused on recycled and sustainable feedstock and zero-carbon products. [E1-1.16c] In 2024, 22.4% (2023: 27.7%) of OMV’s total CAPEX was classified as Taxonomy-eligible (non-aligned) and 18.7% (2023: 10.5%) as Taxonomy-aligned.

Scenario Analysis

[E1-4.34f AR 30c] Scenario analysis lays the foundation for OMV to develop its strategy, offering insights into potential future pathways within which OMV can position its strategy. Continuous scenario analysis supports the Group in strengthening the resilience of our business model and strategy: scenarios are used to identify risks and opportunities (e.g., risks and opportunities for business development arising from a slower or a faster energy transition, risks and opportunities for current and future businesses arising from policies and regulations), stress test the business model (e.g., in different pricing environments), and support capital allocation decisions (e.g., to ensure cash flow resilience in different scenarios).

OMV’s strategy development is informed by an underlying market base case, which is based on the IEA APS scenario and other external and internal market analysis. This base case is used to evaluate strategic options, define our mid-term strategy and planning, and for estimates relating to the measurement of various items in the Group financial statements (including the impairment testing of non-financial assets and the measurement of provisions). For investment decisions, business cases are based on the base case scenario. Additionally, investments undergo a stress test based on a “net zero emissions by 2050” scenario that is primarily influenced by the IEA NZE scenario. For details, see Note 3: Effects of climate change and the energy transition.

[E1-1.16a, 16h] When assessing the alignment of OMVs climate targets with a 1.5°C world, several scenarios and approaches were explored, as no guidance is available for an integrated oil, gas, and chemicals company. One of the main starting points for OMV’s assessment was the suite of scenarios developed by the Intergovernmental Panel on Climate Change (IPCC), particularly its C1 scenarios, in which global warming is limited to 1.5°C with no or limited overshoot (>50% probability). By examining global energy-related GHG emissions (CO₂, CH₄, and N₂O) but excluding emissions from coal to better reflect OMV’s business, a wide range of around 70 scenarios opens up to 2030 and beyond. The emissions were normalized to 100% for 2019, the base year for OMV’s climate targets. Then, 5% each of the extreme lower and upper outliers were removed to condense this spectrum of scenarios. All OMV’s targets fall within this range, indicating alignment with a 1.5°C world (see figure below). For OMV’s Scope 3 targets in 2030 and 2040, approximately 40% and over 20%, respectively, of the analyzed IPCC scenarios are characterized by less ambitious CO₂ emissions reductions.

Alignment of Greenhouse Gas Reduction Targets

The second key source for OMV’s assessment of its climate targets is the IEA’s World Energy Outlook (WEO 2024). The key IEA scenarios used are the Net Zero Emissions (NZE) scenario, corresponding to a 1.5°C temperature increase, the Announced Pledges Scenario (APS), associated with a 1.7°C increase, and the Stated Policies Scenario (STEPS), pointing toward a 2.4°C rise in temperature. OMV’s 2030 Scope 3 target is very close to being aligned with the oil and gas-related emissions pathway in the NZE scenario, while the 2040 targets fall between the NZE and APS pathways.

Looking at sectoral decarbonization pathways, the IEA’s 2023 special report on The Oil and Gas Industry in Net Zero Transitions is another critical reference. For a company like OMV that remains active in oil and gas and maintains its production target of 350 kboe/d for 2030, the IEA suggests that a capital budget share exceeding 50% should be allocated to clean energy technologies by 2030. This is considered a key criterion for making a fair contribution to achieving net zero emissions by 2050. As the IEA notes, this capital share would only be feasible for oil and gas companies if governments were to significantly reduce their tax revenues and shareholders were willing to accept lower dividends. This compares with OMV’s commitment to allocating, on average, 40–50% of organic investmentsPotential additional inorganic investments for mergers and acquisitions are strategically selected to accelerate OMV’s transition in alignment with its Strategy 2030 and its path to net zero by 2050.Close to sustainable projects in the period to 2030, while also maintaining competitive shareholder returns. The IEA report also provides Scope 1 and 2 emission pathways for oil and gas, which were combined with emissions from chemicals from the World Energy Outlook by weighting them based on OMV’s Scope 1–3 emissions according to the respective business segment in 2019. This indicates that OMV’s 2030 and 2040 targets align with the resulting APS pathway, but not the NZE. In the NZE scenario, for oil and gas operations alone, Scope 1 and 2 emissions should fall by more than 60% by 2030. Recognizing that achieving this could be challenging for companies with extensive past reduction efforts, the IEA suggests alternative 2030 emissions intensity targets for upstream oil and natural gas as well as oil refining. Based on the intensity targets, OMV’s Scope 1 and 2 targets are over 80% aligned with the outcomes of the NZE scenario.

However, the comparison with the intensity targets covers only about one-third of OMV’s current total target-relevant Scope 1 and 2 emissions and thus doesn’t encompass a significant portion of OMV’s operations. In general, the IEA’s guidance for the oil and gas industry on alignment with the NZE scenario does not fully apply to OMV, as it excludes OMV’s chemicals business. This limitation specifically applies to the IEA’s emissions intensity target, which is designed for conventional oil refineries. To make a meaningful comparison with the IEA’s targets, it is necessary to exclude the chemicals business and its associated emissions from OMV’s petrochemical integrated sites at Schwechat and Burghausen. This exclusion results in a somewhat narrower scope for the remaining oil refinery business, with lower associated emissions and thus a more positive outcome.

To complete the picture, the One Earth Climate Model (OECM) is used as a reference. Commissioned by the UN-convened Net-Zero Asset Owner Alliance and the European Climate Foundation, the OECM provides sectoral decarbonization roadmaps for oil, gas, and chemicals. Compared to the IEA’s NZE scenario, it assumes a lower carbon budget, no fossil fuels for energy use by 2050, and no role for any carbon capture technologies such as CCS. Consequently, especially looking toward 2040, the role of oil and gas is significantly lower than in the IEA’s NZE scenario. The OECM’s exclusion of CCS is not in line with OMV’s strategy, which considers CCS crucial for achieving net zero by 2050. However, this implies that successful global deployment of carbon capture technologies may increase the available carbon budget, providing more leeway to the OECM sectoral decarbonization pathways.

As for the IEA scenarios, the OECM oil, gas, and chemicals pathways were weighted and combined to reflect OMV’s business structure. This demonstrates clear alignment with a 1.5°C pathway to 2030 for Scope 1 and 2 emission targets. By 2040, OMV would miss the combined OECM pathway. However, by then OMV’s business is expected to have evolved in line with the political realities and business environment in which OMV operates, rendering the 2019 weighting no longer applicable. As the share of OMV’s business related to gas is expected to increase and oil to decrease, this improves OMV’s alignment, as the OECM Scope 1 and 2 pathway for gas is less ambitious than OMV’s targets. In contrast, OMV’s Scope 3 targets do not align with the combined OECM pathway.

In conclusion, while OMV’s climate targets are clearly aligned with the Paris Agreement’s goal of limiting global warming to well below 2°C, assessing compatibility with a 1.5°C world presents a more nuanced picture due to the lack of binding guidance for the oil, gas, and chemicals industry and the limited number of credible sector-specific decarbonization pathways. At this stage, OMV is confident that its Scope 3 emission reduction targets for 2030 are compatible with limiting global warming to 1.5°C, while Scope 1 and 2 targets come close to the ambition of making a fair contribution. As new scenarios and guidance become available, OMV will revisit its 1.5°C assessment and adjust conclusions accordingly.

Locked-in Emissions

Key Assets, Associated Sources of Emissions, and Reduction Measures

[E1-1.16d] Locked-in emissions refer to future greenhouse gas emissions expected to arise from OMV’s active and firmly planned key assets or products sold throughout their operational lifespans. OMV’s key assets concerning locked-in emissions can be classified as follows:

• the refineries in Schwechat, Burghausen, and Petrobrazi
• the chemicals businesses in Kallo, Stenungsund, and Porvoo
• the Brazi power plant
• the Exploration & Production (E&P) businesses in Romania and Austria

Around half of the locked-in emissions up to 2030 are associated with the refineries, while the key chemicals assets contribute around one-fifth to the total, with the Brazi power plant and key E&P assets contributing the remainder. Jointly, these key assets account for over 90% of OMV’s total Scope 1 and 2 greenhouse gas emissions from 2024 to 2030. To reduce these emissions, OMV continuously optimizes its operations and facilities to improve their energy efficiency. These four asset types are briefly introduced below, along with their main emission sources and potential emission reduction measures.

Locked-In Scope 1 and 2 Emissions From Key Assets From 2024 to 2030, After Implementation of Emission Reduction Measures

Refineries

[E1-1.16d] OMV’s refineries, especially those in Austria (Schwechat) and Germany (Burghausen), are petrochemically integrated sites. They supply Borealis and other customers with petrochemical monomers in addition to the traditional fuels business in road and aviation fuels. Greenhouse gas emissions from the refineries include emissions from the process plants for fuel production (such as hydrotreating facilities, crude distillation, etc.), which are partially required for petrochemical upstream processes, plus emissions mainly from steam crackers producing petrochemicals and from the utility plants required for electricity and steam generation.

Emission reduction measures to be implemented between now and 2030 focusing on the electrification of drives, the optimization of used fuels, the handling of refinery residues, and the use of green hydrogen are currently being examined. Additionally, OMV is decreasing the crude oil throughput, which will also lower associated emissions across all scopes. Looking beyond 2030, OMV will continue to reduce CO₂ emissions by adapting the future product portfolio to more sustainable and recycled products and by decarbonizing the remaining process units, through means such as electrification, CCS, or more sustainable process fuels.

Chemicals Business in Kallo, Stenungsund, and Porvoo

[E1-1.16d] Key sources of greenhouse gas emissions in OMV’s chemicals business are the generation of process heat (from district heating) and steam to operate the propane dehydrogenation (PDH) unit in Kallo (second unit currently under construction), and the steam crackers in Stenungsund and Porvoo. Power and steam are used to drive compressors and pumps. Most of the current Scope 1 emissions from the PDH unit and steam crackers can be considered locked in until 2030.

Emission reduction measures for Scope 2 offer significant potential by shifting toward renewable external electricity supply and implementing efficiency improvements. Looking toward 2040, CCS and boiler electrification can be considered as options to significantly lower direct emissions. For 2050, the technologies for the electrification of furnaces used in the PDH unit and steam crackers plus carbon-neutral hydrogen as an alternative fuel may eventually become available. These options could significantly bring down associated emissions. Some of the locked-in emissions are due to third-party steam and power supplies through direct lines from the supplier. Such emissions will need to be reduced in close collaboration with these suppliers.

Brazi Power Plant

[E1-1.16d] OMV Petrom’s Brazi power plant is a combined cycle power plant with a total capacity of 860 MW, covering approximately 10% of Romania’s electricity consumption. Its locked-in emissions are directly related to gas consumption for electricity generation over its lifetime.

OMV was able to reduce emissions through various technical pathways, such as operating at a lower capacity factor or incorporating clean fuel sources as a complement to natural gas (such as biomethane or hydrogen). However, prospects must consider the viability and maturity of these technical pathways and the evolution of the market (including demand, pricing, and the regulatory environment).

Exploration & Production

[E1-1.16d] OMV Petrom’s E&P business in Romania operates around 150 commercial oil and gas fields with approximately 6,000 production wells, 9,000 km of pipelines, and around 900 processing facilities. Collectively, these operations currently produce around 110 kboe/d. From 2027 onward, the Neptun Deep project is anticipated to add up to 70 kboe/d to OMV Petrom’s natural gas production. In Austria, some 1,000 wells produce over 16 kboe/d. The largest share of the Scope 1 emissions from E&P Romania (~70%) and Austria (~60%) are caused by the fuel gas consumption for producing and processing oil and gas, such as in the operation of compressors and steam generation. Scope 2 emissions are associated with power consumption.

Emission reductions are expected to naturally occur in line with the production decline over the lifetime of the oil and gas fields. In E&P Romania, energy efficiency improvements, process optimization, field modernization, and integrity improvements are the main measures considered to reduce Scope 1 emissions by 2030. In E&P Austria, the replacement of gas-driven compressors with electric ones is the main measure considered to reduce Scope 1 emissions by 2030 and beyond, in addition to the production decline. By 2040, emissions associated with the current operations are expected to significantly reduce to less than half of current levels. This is mostly due to the production decline, but also the switch to renewable power consumption.

Overall, the measures identified across all key assets will bridge the gap to meet OMV’s 2030 Scope 1 and 2 targets, with around two-thirds of the reductions of the locked-in emissions up to 2030 coming from the Brazi power plant and the Schwechat refinery.

Emissions of Sold Products

[E1-1.16d] The locked-in emissions associated with the products OMV sold in the reporting year (Scope 3, Category 11), as defined by ESRS, represented over 55% of OMV’s total Scope 3 emissions (79.9 out of 145.9 mn t CO₂e) in 2024. These emissions are directly related to the combustion of the oil and gas products sold for energy use, meaning they occur largely in the reporting year and are not locked in for many years to come. Instead, they reduce year by year in line with OMV’s Strategy 2030 and emission targets. For more information, see General Information and Key Actions.

Impact of Locked-In Emissions on GHG Reduction Targets

[E1-1.16d] [E1-IRO-1 AR 12d] OMV’s emission targets cover 100% of Scope 1 and 2 greenhouse gases from the key assets listed previously and 99% of the emissions from sold products (as Chemicals is excluded). OMV’s 2030 climate targets are integral to the Strategy 2030 and associated business objectives, as well as being a key element of the Executive Board’s remuneration. To align with these goals, OMV utilizes a unified planning process to achieve both business and climate objectives. The locked-in emissions from OMV’s key assets and sold products are factored into OMV’s strategy and its implementation, ensuring they do not jeopardize meeting OMV’s 2030 emissions targets in line with current expectations. Looking toward 2040 and 2050, further options for reducing emissions in line with OMV’s climate targets include switching to more sustainable fuels and feedstocks, as well as decarbonization measures like increased electrification, carbon capture technologies, and other emerging solutions. The final selection of measures for implementation will depend on how legal frameworks evolve, the availability of technologies and supporting infrastructure (e.g., pipelines for hydrogen or CCS), and the market demand for, and supply of, more sustainable products. By 2050, OMV expects to compensate for any remaining locked-in emissions to achieve net zero emissions. Implementing sophisticated decarbonization projects presents challenges in terms of financing, timing, and duration. These projects may take many years from planning to operation, requiring highly skilled personnel and comprehensive process modifications. Consequently, project delays are factored into OMV’s risk management to avoid jeopardizing the achievement of OMV’s emission reduction targets, as detailed in Risk Management.

Resilience Analysis

[E1-SBM-3 AR 7a, 7b, 7c] [E1-SBM-3 AR 6] [E1-SBM-3.19a, 19b] OMV’s resilience framework for managing potential climate change crises or unpredictable threats adheres to the principles of assessment, testing, monitoring, and continuous improvement. This framework includes a stress test based on a “net zero emissions by 2050” scenario to identify the challenges OMV’s entire value chain may face before 2030 related to the energy transition, including the risk of stranded assets, and to develop the necessary capabilities to address these challenges. The assumptions for this scenario are consistent with the IEA Net Zero Emissions (NZE) scenario. Further information on our market outlook scenarios, which are based on the assumptions about how the transition to a lower-carbon and more resilient economy is affected by surrounding macroeconomic trends, energy consumption and mix, and technology deployment assumptions, can be found in Market Environment. The resilience analysis was performed in line with the consolidated financial statements prepared in accordance with IFRS as of December 31, 2024. Further details can be found in Note 3 to the Consolidated Financial Statements for year-end December 31, 2024, in the Annual Report 2024. The critical assumptions for a low-carbon and resilient economy were set for OMV using sensitivities calculated based on the IEA Net Zero Emissions (NZE) price assumptions. Further details about time horizons and financial effects, as well as the mitigation measures and resources needed, can be found in Note 3 to the Consolidated Financial Statements for year-end December 31, 2024, in the Annual Report 2024.

[E1-SBM-3 AR 8a] Details about the uncertainties of the resilience analysis and to what extent the assets and business activities at risk are considered within the definition of the OMV’s strategy, investment decisions, and current and planned mitigation actions can be found in Note 3 to the Consolidated Financial Statements for year-end December 31, 2024, in the Annual Report 2024. [E1-SBM-3 AR 8b] OMV has committed to addressing climate change with climate targets introduced in 2022, supported by its Strategy 2030. Significant CAPEX is allocated to climate action across operations, products, circular economy initiatives, innovation and R&D, working environment, and social investments. OMV is evolving its product portfolio to include sustainable and biobased fuels and green gas sales. The Company aims to lead in the circular economy by increasing sales volumes of sustainable (renewable and recycled) chemicals and polymers. OMV is also developing renewable energy and low-carbon projects, including geothermal energy, renewable power, and CCS. Key assets include OMV’s refineries, which are upgraded to meet future demand for sustainable products. Innovations like ReOil® technology process plastic waste into high-quality base chemicals and plastics. Further details can be found in Note 3 to the Consolidated Financial Statements for year-end December 31, 2024, in the Annual Report 2024.

OMV continues to be in close dialogue with financial institutions and the investor community regarding its transformation toward a net zero company by 2050 and the necessary steps to follow the decarbonization pathway. In order to ensure access to attractive debt and equity financing OMV continuously demonstrates strong ESG performance and its active approach to shaping its sustainability strategies to ensure alignment with global climate goals. To reach that goal OMV follows a robust sustainability transition plan, enhances sustainability reporting capabilities, and strengthens ESG governance and risk management, inter alia. While aligning with ESRS requirements and enhancing sustainability practices, OMV is aiming at a broad diversification of its investor base and its funding sources, and at the same time ensuring that its funding measures support its strong investment-grade credit rating and its long-term financial ratio targets. The Company fosters investor confidence and continuously assesses ESG-aligned funding options to ensure ongoing access to funding and liquidity at attractive rates, in line with market developments.