In support of its transition to a net-zero business in line with the Paris Agreement and EU climate strategies and targets, and to manage our impacts, risks, and opportunities related to E1 Climate Change, OMV has developed the following policies and frameworks to guide its actions related to climate change mitigation, energy efficiency, and renewable energy deployment.
Code of Conduct
For the Code of Conduct, unless otherwise specified, the key contents of the policy that are relevant for E1 Climate Change, the process for monitoring, the scope of the policy, involvement of senior-level management, reference to third-party standards (where relevant), interests of key stakeholders in setting the policy (where relevant), and how the policy is made available to potentially affected stakeholders are covered under ESRS 2 Overarching Policies.
Environmental Management Standard
For the Environmental Management Standard, unless otherwise specified, the key contents of the policy that are relevant for E1 Climate Change, the process for monitoring, the scope of the policy, involvement of senior-level management, reference to third-party standards (where relevant), interests of key stakeholders in setting the policy (where relevant), and how the policy is made available to potentially affected stakeholders are covered under ESRS 2 Overarching Policies.
Greenhouse Gas Management Framework
The Greenhouse Gas (GHG) Management Framework complements the guidelines provided in the Environmental Management Standard to give a detailed approach on how to manage the negative impacts related to GHG emissions from our operations and products sold and address the low energy efficiency within our operations. This includes mitigating the high emissions and significant energy consumption of continued operations and business activities under the current business model. Managing these negative impacts also helps us to prevent a loss of investors’ trust due to a potential inability to implement our Strategy 2030, which we have identified as a material risk. Furthermore, the GHG Management Framework is related to the long-term opportunity of gaining a competitive advantage by participating in the clean energy transformation process.
The GHG Management Framework is an OMV standard that defines how to measure, report, and manage greenhouse gas emissions. It contains the definitions, boundaries, and rules for OMV’s strategic GHG reduction targets. The standard defines reduction measures such as Carbon Capture and Storage (CCS) and Carbon Capture and Utilization (CCU), as well as the requirements for purchasing voluntary carbon offsets and their contribution to achieving the Group’s GHG targets. It also provides guidance on the management of methane emissions, and the accounting and reporting of biogenic CO2 emissions. The effectiveness of the GHG Management Framework is assessed through the annual data campaign, plausibility checks, and regular monitoring of progress toward the established targets. It applies to OMV including Borealis and OMV Petrom. The CFO, who approves the GHG Management Framework, is also accountable for its implementation, while responsibility for implementation lies with the SVP Investor Relations & Sustainability. The GHG Management Framework references the GHG Protocol, the OGMP 2.0 framework, IPCC, and the Integrity Council for the Voluntary Carbon Market. OMV subject matter experts and relevant employees were either directly involved in the development of the standard or their feedback on the draft standard was sought during the internal consultation process. The standard is made available to all OMV employees via the Regulations Alignment Platform on the OMV Intranet.
Controlling of Investment Directive
The Controlling of Investment Directive regulates the process of investment decision-making and reporting within OMV, more specifically defining CAPEX for controlling purposes. The Directive also regulates the investment criteria for sustainability projects that are aimed at mitigating the negative impacts that were identified in relation to GHG emissions from operations, products sold, and low energy efficiency in our operations. Furthermore, this Directive supports our identified long-term opportunity of gaining a competitive advantage by participating in the clean energy transformation process. The goal is to promote and facilitate investments in projects aligned with our climate targets. OMV defines CAPEX for sustainability projects as investments that meet one of the following two criteria: either they are aligned with the EU Taxonomy, or they are investments that support the implementation of OMV’s 2030 Sustainability Framework. The latter includes investments related to methane leakage detection and repair, energy efficiency programs, chemical recycling, and community investments classified as strategic social investments, among others. For sustainability projects to pass the final investment decision, different financial hurdles apply compared to those applicable to the rest of the projects in the portfolio. “Sustainability CAPEX” projects use distinct “weighted average cost of capital (WACC)” rates that consider the specific risks of sustainability projects (usually lower compared to other projects) and a payback period of <15 years. The regular monitoring process for investments is centered on annual post and interim appraisals, cost overrun reporting, and ongoing supervision by the Controlling & Performance Management function.
The scope of the Controlling of Investment Directive covers OMV including all its fully consolidated subsidiaries. The Directive is approved by the OMV Executive Board, which is accountable for its implementation. Responsibility for implementation lies with the SVP Group Controlling & Performance Management. OMV subject matter experts and relevant employees were either directly involved in the development of the Directive or their feedback on the draft Directive was sought during the internal consultation process. The Directive is made available to all OMV employees via the Regulations Alignment Platform on the OMV Intranet.
Enterprise-Wide Risk Management Standard
For the Enterprise-Wide Risk Management Standard, unless otherwise specified, the key contents of the policy that are relevant for E1 Climate Change, the process for monitoring, the scope of the policy, involvement of senior-level management, reference to third-party standards (where relevant), interests of key stakeholders in setting the policy (where relevant), and how the policy is made available to potentially affected stakeholders are covered under ESRS 2 Overarching Policies.