Local Procurement and Capacity Building We continue to further support the local communities in the locations where we operate: our spend with local suppliers accounts for 81% in 2020, which includes local expenditures amounting to 74% in Austria and 91% in Romania. Furthermore, we believe it is important to take into consideration our impact in the areas of environment, social, and governance, which is why we support local communities and suppliers to further their development and advance our sustainability agenda. Local Procurement Strategy Launched in Yemen In 2019, OMV Yemen launched a local procurement strategy to strengthen the local economy and meet the local procurement expectations of neighboring communities. As the Republic of Yemen is a tribal-based society, the supply chain is predominantly Yemeni. The focus of the local procurement strategy is to strengthen economic ties with the tribes and communities physically surrounding our operations. Increased local procurement has the added benefit of reducing business disruption, which can occur due to local political conflicts. In 2019, OMV Yemen began providing workshops to educate and train local suppliers and contractors. The focus was on enhancing technical and financial capabilities. Moreover, OMV Yemen set up an annual local procurement plan and adjusted its procurement processes accordingly. Such adjustments included modifying internal standards and contract templates to enable more local procurement by using a fit-for-purpose approach. In 2020, a local Value creation dashboard was developed to measure the efficacy of the strategy. The dashboard tracks items including order values, the local personnel of our main contractors, local equipment rented, local suppliers qualified, and local spend. An informal and friendly competition was also launched among suppliers in three categories: top supplier for local personnel hired, top supplier for local equipment rental, and top supplier for local spend to local contractors. The aim was to further encourage local procurement throughout the supply chain. SDG targets: 8.1 Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries; 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services Assessments and AuditsPerformance in Detail
