Sustainability strategy

Growing demand for energy and accelerating climate change pose immense challenges for the energy sector. The key lies in finding the balance between climate protection efforts, affordable energy, and reliable supply. The economy needs alternative energy systems as well as economically viable and scalable technologies to satisfy the growing demand for energy. Here, OMV will make a significant contribution to the sustainable energy supply for future generations. To realize its mission of providing energy for a better life, OMV is committed to exploring the full potential of oil and gas at its best by following a responsible approach in producing, processing, and marketing oil and gas and petrochemical products. OMV’s responsible approach to business stipulates the prevention and mitigation of sustainability risks associated with OMV’s activities.

We also aim to seize the opportunities presented by taking a sustainable approach to business. The 15 measurable targets of the Sustainability Strategy 2025 define the primary direction of OMV’s path to sustainability in the very near future. The targets are set in the five focus areas: Health, Safety, Security, and Environment (HSSE); Carbon Efficiency; Innovation; Employees; Business Principles and Social Responsibility. The Sustainability Strategy 2025 constitutes an integral part of the Corporate Strategy 2025 and is the sustainable component of OMV’s business ambitions.

The Sustainability Strategy’s targets relating to OMV’s operations and products are aligned with the production, sales, and product portfolio plans set by the Corporate Strategy. Thus, for example, reducing the carbon intensity of the product portfolio is based on the planned increase in the share of natural gas and the increased weight of petrochemicals, where oil is used as a raw material rather than fuel. The reduction of the carbon intensity of operations is based on the plan to optimize production through innovative technical measures, to further enhance the energy efficiency of operations, and to eliminate routine flaring and venting. The targets related to focus areas that are linked to the social dimension of sustainability – HSSE, Employees, Business Principles and Social Responsibility – round out OMV’s mission as a responsible business player. In line with our approach to shaping the future of energy in a sustainable way, OMV intends to allocate significant resources to the implementation of the Sustainability Strategy 2025. For example, up to EUR 500 mn will be invested by 2025 in innovative energy solutions such as ReOil® and Co-Processing. (For more information on ReOil® and Co-Processing, see Innovation.)

In order to step up our development of low-carbon business solutions and technologies, we set up a New Energy Solutions team in 2019. This initially meant consolidating and centrally bundling responsibility for OMV’s portfolio of new energy solutions in one department to harmonize results across divisions in the best interests of OMV as a whole. These activities include developing the market for gas-powered vehicles as well as building Austria’s largest photovoltaic plant with the power company VERBUND. The latter project will meet 10% of the energy needs of our Upstream production facilities in Austria and reduce our CO2 emissions by 12,000 t per year.

The mission of the team is to develop and implement low- and zero-carbon energy solutions, i.e., measures for net carbon reduction and new low- and zero-carbon business opportunities. In addition, the team’s aim is to find large-scale solutions to reduce, reuse, or store greenhouse gas emissions. A review of carbon efficiency targets was launched with the aim of setting more ambitious targets. A comprehensive strategy for the New Energy Solutions activities is being prepared, which will be communicated in 2020. (For more details, see Sustainability governance.)

Summary of OMV response to combat climate change

For decades, OMV has pledged to do business economically, ecologically and socially sustainably. We will continue to uphold this commitment as it is the only way to protect and preserve security and prosperity in the long term. More and more people need more and more energy. At the same time, the planet is getting warmer and warmer, making climate protection increasingly important. We are therefore transforming our business model step by step with the aim of reducing the carbon footprint of the Company.

We see oil as a valuable raw material, which should not be burned. We see gas as well as hydrogen as enablers of the energy transition towards a low-carbon energy system.

To achieve this, we draw on our strengths and use many levers to reduce the CO2 concentration in the atmosphere:

  • With the help of new technologies, we are consistently reducing the CO2 emissions of our refineries and our oil and gas production.
  • We are increasing the proportion of gas in our total production and contributing to a significant reduction in CO2 emissions by replacing coal with gas as energy source.
  • We refine oil into high-quality petrochemical products instead of burning it to generate energy.
  • We recycle biogenic and plastic waste into valuable raw materials and are investing EUR 500 mn in these innovations, enabling a circular economy.
  • We are exploring ways to store CO2 in underground storage facilities and to reuse CO2 as a raw material for chemical products.
  • We are working on economically viable hydrogen solutions for industry and mobility.

OMV takes climate action in its operations, product and service portfolio, innovations and R&D activities, working environment, and social investments.

Actions in all areas are needed to combat climate change. Further details about all measures are provided in the respective focus areas.

Sustainability commitments and targets

Health, Safety, Security, and Environment (HSSE)

Commitments

  • Health, safety, security, and protection of the environment have the highest priority in all activities.
  • Proactive risk management is essential for realizing OMV’s HSSE Vision of “ZERO harm – NO losses.”

Targets 2025

Status 2019

Milestones 2020

Fatalities

  • achieve zero work-related fatalities
  • zero work-related fatalities
  • zero work-related fatalities

Lost-Time Injury Rate (LTIR)

  • stabilize at below 0.30 (per 1 million hours worked)
  • 0.34 (per 1 million hours worked)
  • 0.34 (per 1 million hours worked)

Process safety

  • keep leading position in Process Safety Event Rate
  • leading position maintained
  • keep leading position

Sustainable Development Goals (SDGs) supported

SDG 3 – Good Health and well-being (icon) SDG 6 – clean water and sanitation (icon) SDG 8 – decent work and economic growth (icon)
Find out more about this material focus area.

Carbon Efficiency

Commitments

  • OMV focuses on improving the carbon efficiency of its operations and product portfolio.
  • OMV is fully committed to acting on climate change mitigation and responsible resource management.

Targets 2025

Status 2019

Milestones 2020

Carbon intensity of operations1CO2 equivalent emissions produced to generate a certain business output using the following business-specific metric ‒ Upstream: t CO2 equivalent/toe produced, refineries: t CO2 equivalent/t throughput, power: t CO2 equivalent/MWh produced ‒ consolidated into an OMV Group Carbon Intensity Operations Index, based on weighted average of the business segments’ carbon intensity

  • reduce by 19% by 2025 (vs. 2010)
  • –22% vs. 2010 achieved
  • set new target as initial 2025 target achieved ahead of schedule

Carbon intensity of product portfolio2The carbon intensity of OMV’s product portfolio measures the CO2 equivalent emissions generated by the use of OMV’s products sold to third parties in t CO2 equivalent/toe sold.

  • reduce by 4% by 2025 (vs. 2010)
  • −4% vs. 2010 achieved
  • set new target as initial 2025 target achieved ahead of schedule

Flaring

  • achieve zero routine flaring and venting of associated gas by 2030
  • –37% in Upstream vs. 20103Total (including non-routine) flaring and venting.
  • continue with ongoing flaring and venting reduction projects

Sustainable Development Goals (SDGs) supported

SDG 7 – affordable and clean energy (icon) SDG 13 – climate action (icon)
Find out more about this material focus area.

Innovation

Commitments

  • OMV’s innovation efforts focus on optimizing production, exploring high-end petrochemical solutions, developing innovative energy solutions, and embracing digital technologies.
  • Innovation is facilitated by investment and partnerships in the research and development of innovative technological solutions.
  • OMV will invest EUR 500 mn in innovative energy solutions by 2025.

Targets 2025

Status 2019

Milestones 2020

ReOil®

  • develop ReOil® into a commercially viable, industrial-scale process (unit size of ~200,000 t per year)
  • 100 t of post-consumer plastic transformed into synthetic crude; 40 days of continued production at the ReOil® plant
  • 250 t of post-consumer plastic transformed into synthetic crude; further testing at pilot plant in order to support the engineering process of the scale-up to the next-level ReOil® demo plant

Co-Processing

  • raise the share of sustainable feedstock co-processed in the refineries to ~200,000 t per year by 2025
  • Process Design Package finalized for Schwechat refinery; process studies finalized for Petrobrazi refinery
  • For purposes of gaining further experience and rolling out Co‑Processing at OMV Petrom, additional test runs are planned at the Petrobrazi refinery in Romania in 2020 (3,000 t of biogenic feedstock), to be accompanied by final product quality assurance tests in the laboratory.

Enhanced Oil Recovery (EOR)

  • increase the recovery factor in the CEE region in selected fields by 5–15 percentage points by 2025 through innovative Enhanced Oil Recovery methods
  • pilot EOR project started in Romania in 2019; result of pilot project in Austria: additional production of about 100 kboe in 2019
  • finalize the pilot EOR project in Romania; further mature the full field implementation project in two Matzen field reservoirs

Sustainable Development Goals (SDGs) supported

SDG 7 – affordable and clean energy (icon) SDG 8 – decent work and economic growth (icon) SDG 9 – industry, innovation and infrastructure (icon) SDG 12 – responsible consumption and production (icon) SDG 13 – climate action (icon)
Find out more about this material focus area.

Employees

Commitments

  • OMV is committed to building and retaining a talented, expert team for international and integrated growth.
  • OMV is committed to its diversity strategy with a focus on gender and internationality.

Targets 2025

Status 2019

Milestones 2020

Gender diversity

  • increase share of women at management level4Management level: executives and advanced career level to 25% by 2025
  • 19.6% women at management level in 2019
  • increased focus on succession planning, recruitment processes, additional female leadership programs, as well as initiatives to promote a diversity culture

International diversity

  • keep high share of executives with international experience5Equal to or greater than three years of living and working abroad at 75%
  • 77% executives with international experience in 2019
  • maintain the high share of executives with international experience through succession planning, mobility, and recruitment processes

Sustainable Development Goals (SDGs) supported

SDG 5 – gender equality (icon) SDG 10 – reduced inequalities (icon)
Find out more about this material focus area.

Summary of OMV response to combat climate change

For decades, OMV has pledged to do business economically, ecologically, and socially sustainably. We will continue to uphold this commitment as it is the only way to protect and preserve security and prosperity in the long term. More and more people need more and more energy. At the same time, the planet is getting warmer and warmer, making climate protection increasingly important. We are therefore transforming our business model step by step with the aim of reducing the carbon footprint of the Company.

We see oil as a valuable raw material, which should not be burned. We see gas and hydrogen as enablers of the energy transition toward a low-carbon energy system.

To achieve this, we draw on our strengths and use many levers to reduce the CO2 concentration in the atmosphere:

  • With the help of new technologies, we are consistently reducing CO2 emissions of our refineries and our oil and gas production.
  • We are increasing the proportion of gas in our total production and contributing to a significant reduction in CO2 emissions by replacing coal with gas as an energy source.
  • We refine oil into high-quality petrochemical products instead of burning it to generate energy.
  • We recycle biogenic and plastic waste into valuable raw materials and are investing EUR 500 mn in these innovations, enabling a circular economy.
  • We are exploring ways to store CO2 in underground storage facilities and to reuse CO2 as a raw material for chemical products.
  • We are working on economically viable hydrogen solutions for industry and mobility.

OMV takes climate action in its operations, product and service portfolio, innovations and R&D activities, working environment, and social investments.

Actions in all areas are needed to combat climate change. Further details about all measures are provided under the respective focus areas.

1 CO2 equivalent emissions produced to generate a certain business output using the following business-specific metric ‒ Upstream: t CO2 equivalent/toe produced, refineries: t CO2 equivalent/t throughput, power: t CO2 equivalent/MWh produced ‒ consolidated into an OMV Group Carbon Intensity Operations Index, based on weighted average of the business segments’ carbon intensity

2 The carbon intensity of OMV’s product portfolio measures the CO2 equivalent emissions generated by the use of OMV’s products sold to third parties in t CO2 equivalent/toe sold.

3 Total (including non-routine) flaring and venting.

4 Management level: executives and advanced career level

5 Equal to or greater than three years of living and working abroad

6 Legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, based on engagement and dialogue

7 654 employees in corporate functions managing human rights risks as well as the corresponding functions in countries with elevated human rights risks

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