Climate Change

The OMV Group clearly recognizes that climate change is one of the most important global challenges today and fully supports the goals set forth by the Paris Agreement. By 2050, OMV aims to transform into a net zero business.¹ The commitment “net zero business by 2050” covers the greenhouse gas (GHG) emissions of our operations (Scopes 1 and 2), and our product portfolio and other Scope 3 emissions along the value chain. For our interim GHG targets for 2030 and 2040, Scopes 1 and 2 and the following Scope 3 categories are included: Category 11: Use of Sold Products for OMV’s energy segment, Category 1: Purchased Goods (feedstocks) from OMV’s non-energy business segment, and Category 12: End-of-Life of Sold Products for OMV’s non-energy segment.

In 2022, OMV has set out a roadmap with concrete interim short-, medium-, and long-term targets for the first time. OMV targets are set at an absolute and intensity level with the ultimate goal of achieving net zero greenhouse gas (GHG) emissions in Scopes 1, 2, and 3 by 2050. For Scopes 1 and 2, OMV is aiming for an absolute reduction of 30% by 2030 and of 60% by 2040. For Scope 3, from our product portfolio and other material Scope 3 emissions, OMV is striving for a reduction of at least 20% by 2030 and of 50% by 2040. These absolute GHG emission reductions and the increase of zero-carbon product energy sales are the key to reducing the carbon intensity of our energy supply, pursuing a decline of 20% by 2030 and of 50% by 2040. These targets are approximated to IEA’s Sustainable Development Scenario (SDS). However, our ambition is to achieve net zero emissions already by 2050, thus being aligned with the IEA’s Net Zero Emissions by 2050 Scenario (NZE).

To achieve these targets, OMV takes climate action in its operations, product and service portfolio, circular economy activities, innovations and R&D activities, working environment, and social investments. There is no silver bullet for tackling climate change. Reaching our targets for 2030 and beyond will require a considerable effort by all of our business units, but it will be done by building on existing strengths and know-how.

These are the key pillars that will enable us to meet our goals:

• A significant decrease in fossil fuels and natural gas sales: By 2030, we intend to reduce oil and gas production levels to around 350 kboe/d and cut crude distillation throughput by 2.6 mn t.
• An increase in zero-carbon product energy sales: There will be a significant increase in sustainable and biobased fuels, green gas sales, and a build-up of photovoltaic electricity capacity for captive use, as well as geothermal heat.
• An increase in the recycling of polyolefins and sustainable feedstocks: We will deliver approximately 2 mn t/year of circular products, that is, polyolefins manufactured from recyclate or biogenic feedstock rather than fossil sources.
• Improved energy and operational efficiency, and zero routine flaring and venting, thereby reducing methane emissions.
• All energy purchases in the C&M segment will be 100% renewable. In 2022, electricity purchased by C&M accounted for 11.8 PJ – approximately 74% of OMV’s total electricity purchased.

In addition to these efforts, neutralization measures such as Carbon Capture and Storage (CCS) will be necessary. OMV anticipates that it will develop around 5 mn t per year of CCS capacity across all business units until 2030. OMV aims to support and accelerate the energy transition with this new strategy.

CAPEX Allocated for Decarbonization Measures to Meet OMV’s 2030 Climate Targets

Absolute Emissions

Carbon Intensity of Energy Supply

EUR 13 bn CAPEX Planned Until 2030 to Achieve Climate Targets