Carbon Emissions Reduction

Material Topic: Carbon Emissions Reduction

Supporting the goals of the Paris Agreement by reducing the carbon footprint of our operations, for example by improving energy efficiency and reducing the venting and routine flaring of gas.

Key GRI

• GRI 302: Energy 2016
• GRI 305: Emissions 2016

NaDiVeG

• Environmental concerns

Most relevant SDGs

The Carbon Emissions Reduction material topic focuses on reducing the GHG emissions of our operations (Scopes 1 and 2) by way of targeted efforts such as improving energy efficiency, using renewable electricity, modernizing our equipment and processes, and reducing the venting and flaring of gas. These efforts are central to meeting our goal of being carbon neutral in our operations by 2050, which is also enshrined in our HSSE Policy. As part of our new Company strategy, we have set specific interim targets for our short- (2025), medium- (2030), and long-term (2040) targets on the way to meeting our 2050 goals.

Targets 2025

• Reduce carbon intensity of operations¹ CO₂ equivalent emissions produced to generate a certain business output using the following business-specific metric – E&P: t CO₂ equivalent/toe produced; refineries: t CO₂ equivalent/t throughput (crude and semi-finished products without blended volumes); 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 (Scope 1) by ≥30% vs. 2010
• Achieve at least 1 mn t of CO₂ reductions in 2020–2025 from operated assets

Target 2030

• Reduce absolute Scope 1 and 2 emissions by ≥30% vs. 2019

Target 2040

• Reduce absolute Scope 1 and 2 emissions by ≥60% vs. 2019

Status 2021

• Carbon intensity of operations reduced by 18% vs. 2010
• 0.53 mn t CO₂e reduced through concrete emissions reduction initiatives and divestments
• Scope 1 and 2 emissions reduced by 11% vs. 2019

Relevant SDGs

SDG targets:
7.2 By 2030, increase substantially the share of renewable energy in the global energy mix
7.3 By 2030, double the global rate of improvement in energy efficiency
13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Effective carbon and energy management helps reduce costs and liabilities. OMV’s comprehensive approach to managing GHG emissions encompasses GHG and energy accounting and reporting, inventory management, audits, assessment plans, and training for employees. For instance, in 2020, the OMV internal auditing team performed an audit on GHG accounting to evaluate reporting aspects such as completeness, correctness, reporting processes and methodologies, and quality assurance processes. The result of the audit confirmed that OMV reports emissions in a complete and correct manner, the accounting methodology is in general compliance with international standards, and the reporting process is adequate. A few initiatives for 2021 resulted from the audit, which helped improve the quality of the data even more. In 2021, Borealis set up its first corporate carbon footprint following the Greenhouse Gas Protocol, using 2020 data on Scope 1, 2, and 3 GHG emissions. (For more details, see the Borealis Annual Report.) This allows us to fully integrate Borealis’ GHG emissions in our Group carbon footprint and in our reduction targets.

Governance

Ultimate responsibility for Carbon Emissions Reduction lies with OMV’s Executive Board. The Chief Executive Officer (CEO) is responsible for overall management and coordination and is therefore responsible for overseeing climate-related issues as well. OMV Executive Board members meet regularly (at least quarterly) to discuss current and upcoming environmental, climate, and energy-related policies and regulations; related developments in the fuels and gas market; the financial implications of carbon emissions trading obligations; the status of innovation project implementation; and progress on achieving sustainability-related targets. The Executive Board’s remuneration is tied to achievement of GHG emission reduction targets (for more information, see Sustainability Governance).

OMV’s Supervisory Board also oversees the Carbon Emissions Reduction topic. In 2021, we established a new board committee especially for this purpose. The Sustainability and Transformation Committee was formed to support the Company’s Supervisory Board in reviewing and monitoring OMV’s sustainability strategy; ESG-related standards, performance, and processes; and specifically the Group’s performance in HSSE (Health, Safety, Security, Environment) and climate change.

At Group level, responsibility for GHG accounting and management, sustainability reporting, and ESG governance lies with the Carbon, Energy & ESG Management team in Investor Relations & Sustainability, an area overseen by the CFO. OMV’s Carbon, Energy & ESG Management department is responsible for generating OMV’s GHG inventory based on international standards and best practice. This ensures a consistent approach across the Group. The main tasks of the team are:

• to define, implement, and manage the OMV carbon strategy process;
• to monitor, calculate, and report OMV’s GHG emissions;
• to define OMV’s GHG reporting protocols and tools.

This team coordinates activities throughout the business, providing guidance to stakeholder groups such as subsidiaries, business units, and assets on GHG and energy-related topics. There are also dedicated teams at OMV Petrom and Borealis. We provide voluntary trainings to interested employees on GHG monitoring and management, as well as the overall topic of climate change, on OMV’s training and learning platform, MyLearning.