Immaterial Impacts, Risks, and Opportunities

Climate change mitigation/ Energy

[IRO-E1-CC2]
Reduction of GHG emissions through the energy transition
Supporting society’s shift from a linear to a circular economy by offering diversified products with a smaller carbon footprint and gradually moving away from fossil fuels toward a net zero business by 2050

I

+

Actual and potential

Upstream

Own operations

Downstream

Climate change mitigation

[IRO-E1-CC4]
Reputational benefits from implementing nature-based solutions
Reputational benefits from implementing nature-based solutions that capture CO2 and potentially use it as a resource

O

Own operations

Energy

[IRO-E1-CC7]
Competitive advantage and lower costs driven by renewable energy generation for our own sites
Effective management of energy consumption and expansion of renewable energy generation for our own electricity consumption, reducing the environmental cost of our operations, increasing financial savings through energy efficiency measures, preventing non-compliance with regulatory requirements on energy use, and reducing GHG emissions

O

Own operations

Climate change mitigation/
Climate change adaptation

[IRO-E1-CC8]
Value chain takes action to adapt to climate change becoming more resilient
Ensures the consistent delivery of essential feedstock from upstream to its own operations, as well as the dependable delivery of products in downstream

I

+

Actual

Upstream
Own operations
Downstream

Climate change adaptation

[IRO-E1-CC9]
Available products and solutions that support climate change adaptation
Borealis provides products and solutions that support climate change adaptation, increasing climate resilience for customers and society with products enabling cooling, rainwater management, and more

O

Own operations

Climate change adaptation

[IRO-E1-CC10]
Higher feedstock costs
Borealis’ suppliers will shift more of their climate change adaptation costs to Borealis

R

Own operations

Pollution of air

[E2-P-IRO-2]
Reduction of non-GHG emissions through the energy transition
Reduced non-GHG emissions from the energy transition, based on new businesses causing little to no air pollution

O

Own operations

Pollution of water and soil

[E2-P-IRO-3]
Reduction of water and soil pollution by suppliers and business partners
Reduced water and soil pollution in our supply chain through OMV’s active engagement with suppliers and business partners, leading to a positive impact on the environment

I

+

Actual

Upstream
Downstream

Pollution of air

[E2-P-IRO-8]
Positive impact from transition to new, cleaner energy sources
Reduction of air pollution compared to fossil sources (e.g. , hydrogen, geothermal) from the transition to new, clean energy sources

I

+

Potential

Own operations

Process safety

[E2-PS-IRO-1]
Pollution from spills
Process safety incidents, leading to spills, property damage and pollution in the vicinity of our operations

I

–

Actual and potential

Own operations

Water

[E3-W-IRO-2]
Endangering of water resources
Negative effect on water resources due to inadequate wastewater practices and water pollution

I

–

Actual

Own operations

Resource inflows, including resource use

[E5-CE-IRO-3]
Use of primary fossil based resources
Procurement and use of primary fossil-based resources, generating a negative impact on the environment

I

–

Actual

Upstream

Resource inflows, including resource use

[E5-CE-IRO-5]
Circular economy best practices
Achieving cost efficiencies through best practices related to circularity and resource efficiency

O

Own operations

Resource inflows, including resource use

[E5-CE-IRO-6]
Reduction of emissions due to sustainable products
Lower emissions from sustainable products made from renewable inputs or recycled plastic waste

I

+

Potential

Own operations

Waste management

[E5-CE-IRO-7]
Improper waste management
Negative impact on the environment and nearby communities due to improper waste disposal from our operations or supply chain

I

–

Actual

Upstream
Own operations

Waste management

[E5-CE-IRO-8]
Use of waste materials and waste management
Increasing the reuse of waste materials from operations, reducing waste leakages in operations, waste management, and process optimization to minimize waste residue

I

+

Actual

Own operations

Equal treatment and opportunities for all

[S1-OW-IRO-2]
Equal treatment and opportunities for all
Increased employee satisfaction, productivity, and health through a compre­hensive and inclusive workforce strategy.

I

+

Actual

Own operations

Equal treatment and
opportunities for all

[S1-OW-IRO-3]
Attraction of talents and trained staff
Competitive advantage, talent attraction and retention resulting from training opportunities for our staff

O

Own operations

Communities’ economic, social and cultural rights

[S3-AC-IRO-2]
Inability to avoid involuntary resettlement
Inability to avoid involuntary resettlement, leading to negative effects on economic, social, or cultural well-being of the rights holders in the affected communities

I

–

Potential

Upstream
Own operations

Communities’ civil and political rights

[S3-AC-IRO-4]
Communities’ civil and political rights
Respecting the right to protest and the opportunity to express opinions are encouraged and promoted, while a no-lethal-weapons policy and graduated force response model are implemented

I

+

Actual

Upstream
Own operations

Rights of indigenous peoples

[S3-AC-IRO-5]
Disturbance of cultural heritage
Potentially disturbing cultural heritage sites of indigenous people and other communities as a result of business development could have an adverse impact on the preservation of local cultural heritage and its tangible and intangible values (e.g., damage, interference, restriction of access

I

–

Potential

Upstream

Working conditions

[S2-WV-IRO-2]
Active business partner engagement on safety
Ensuring safe handling of OMV’s products and services, leading to a safe and healthy environment.

I

+

Potential

Downstream

Working conditions

[S2-WV-IRO-6]
Competitive advantage
Competitive advantage from applying OMV’s social principles and promoting them to workers in the value chain

O

Own operations

Equal treatment and opportunities for all

[S2-WV-IRO-7]
Access to skilled personnel across the value chain
Enhanced profitability through access to skilled workforce across the value chain

O

Own operations

Equal treatment and opportunities for all

[S2-WV-IRO-8]
Just Transition for the workers in the value chain
OMV contributes to promoting a Just Transition by implementing timely measures that aim to develop workers’ skills and improve their employability in other sectors

O

Own operations

Business conduct

[G1-BE-IRO-1]
Integrity, ethical and transparent business
Positive workplace environment from fostering integrity, ethical practices, and transparency within the business environment

O

Own operations

Protection of whistleblowers

[G1-BE-IRO-2]
Protection of whistleblowers
Promotion of integrity, ethical and transparent business environment through secure, accessible whistleblowing

I

+

Actual

Own operations

Entity-specific cybersecurity

[G1-CS-IRO-2]
Mature information security management system
A mature information security management system enhances the security of personal information and protects the right to privacy

I

+

Potential

Own operations
Downstream

Entity-specific economic value

[G1-EI-IRO-1]
Upside potential from OMV’s contribution to local economy
New business opportunities potentially driven by OMV’s active contribution to the local economy

O

Own operations
Downstream

Entity-specific economic value

[G1-EI-IRO-2]
Positive contribution to local economy
Positive impact on community investments due to OMV’s contribution to the local economy

I

+

Actual and potential

Upstream
Own operations

Entity-specific tax

[G1-EI-IRO-3]
Lower contribution to communities
Lower contributions to communities resulting from reduced payment of local taxes and royalties in times of economic downturns

I

–

Potential

Own operations

Entity-specific tax

[G1-EI-IRO-4]
Geopolitical and economic uncertainty
Higher taxes due to geopolitical and economic uncertainty, along with regulatory change

R

Own operations

Entity-specific economic value

[G1-EI-IRO-5]
Reputation loss due to lower economic value distribution
OMV missing opportunities and reputation erosion due to lower contribution to communities and investors (e.g., reduced payment to local budgets)

R

Own operations

Corporate culture

[G1-SR-IRO-1]
High business standards
Ethical and transparent business environment fostered by strong internal regulations regarding business standards, benefiting both people and the environment

I

+

Actual

Upstream

Corruption and bribery

[G1]
Borealis-specific
Incidents of corruption and bribery caused by upstream and downstream value chain
Hinders economic development, undermines institutions, rule of law is dysfunctional, society has no trust in its governments and institutions, increasing social inequality, social and economic instability, and rising hardship

I

–

Potential

Upstream
Downstream

Corruption and bribery

[G1]
Borealis-specific
A solid anti-corruption and anti-bribery culture, along with legal enforcement, is in place
Foster society’s trust in its institution, social justice, fair distribution of wealth, economic and social welfare

I

+

Potential

Upstream

Corruption and bribery

[G1]
Borealis-specific
A strong applied ethics culture with clear policies, processes, and effective tools in place
Mitigation of corruption and bribery risks, strengthening Borealis’ reputation, increasing supplier and employee confidence in handling unethical offers, enhancing legal compliance, avoiding financial and reputational damage, and fostering trustful relationships with business partners

O

Own operations