Public Policy

OMV’s public policy engagement is fully committed to the Business Strategy 2030, which is based on the Paris Agreement and aim to reach a net zero target in all three scopes by 2050 at the latest. We recognize that the regulatory framework can help achieve progress on issues such as resource efficiency, which includes reducing waste and marine litter thanks to the implementation of a circular economy, climate change, safety improvements, and fair trade. Interaction with governments and regulators takes place at international, European, national, and local levels. Regulators, political stakeholders, and non-governmental organizations (NGOs) can all shape the regulatory framework that affects the Group’s business. Therefore, the OMV Group needs to understand the policy, regulatory, and NGO environment and ensure that it can contribute its knowledge and insight to discussions regarding the future of the regulatory framework.

The OMV Group is a member of industry associations that support the understanding of issues, share knowledge, help develop standards, and provide input to regulatory authorities on behalf of the sector. OMV’s association activities make an important contribution to the broader debate on a sustainable, affordable, and secure energy future, as well as sustainable chemicals and materials. Both the energy transition and the transformation from a linear to a circular economy can only succeed if all stakeholders, including legislators, businesses, and society, engage in productive debates. As a voice from the world of business, associations participate in precisely these important debates and contribute their proven expertise on various aspects of policy.

Management and Due Diligence Processes

Direct Political Engagement

The OMV Group is active in economic policy but does not support political parties – neither financially nor in any other way. Donations to political parties are not permitted as per the Code of Business Ethics. Activities organized by political parties are not allowed on the premises of the OMV Group. There are no restrictions for individual OMV employees on engaging in political or public functions or engaging with special interest groups within the framework of legitimate secondary employment. However, it is not permitted to associate the OMV Group with such activities. As with other secondary employment, employees must conclude an agreement with OMV that regulates the details of such activities. Employees must disclose a conflict of interest between the exercising of political or other public functions and their employment with the OMV Group to their line manager and to Compliance.

Indirect Political Engagement

The OMV Group exchanges views on regulatory issues with the responsible political decision-maker(s) and actively participates in EU and national public consultations on legislative initiatives that are relevant to the Group’s business. It is an active member of industry associations and standardization groups at international, EU, and national levels to stay at the forefront of regulatory and public requirements. The OMV Group representatives make OMV’s position clear on the issues tackled by the associations of which we are members. It aims to inform EU policies by engaging with major industry associations such as Fuels Europe, the European Chemical Industry Council (Cefic), Plastics Europe, and the Polyolefin Circular Economy Platform (PCEP).

Transparency

Our practices are fully in line with all reporting obligations at national and EU levels, and we are fully compliant with all transparency requirements. Interaction with governments and regulators takes place at international, European, national, and local levels.

Monitoring Participation in Industry Associations

Associations aim to adopt positions that reflect a consensus view among members, and thus may not always reflect the view of each individual member. We continuously monitor our membership of associations and their positions on issues so we can consider whether our memberships remain appropriate. As part of our commitment to transparency on climate action, we report not only on our own position and action on climate change, but also on the position of the key industry associations of which we are a member. The OMV Group also regularly reports on the alignment between the industry associations of which we are a member, including OMV’s position on climate change policies. Read our latest review here.

In cases of misalignment, particularly partial misalignment, we will first advocate for changes to the association’s position. Where OMV and an association’s position continues to fail to align, especially in cases of complete misalignment, we will reassess our membership. The OMV Group plans to regularly publish an update on its industry associations review and to expand the scope of review further.

2023 Actions

The following key activities were carried out across the Group in 2023:

• In 2023, the finalization of the Fit for 55 package and REPowerEU were among the most relevant regulatory issues for the OMV Group in the EU. The former included dossiers like the Renewable Energy Directive III, the EU Emissions Trading System, the Carbon Border Adjustment Mechanism, the Energy Efficiency Directive, and the ReFuelEU Aviation Regulation. The OMV Group monitored the legal development and contributed to the positioning of the industry associations. A new topic that came up in 2023 was the Green Deal Industrial Plan. The OMV Group focused particularly on the Net-Zero Industry Act in the context of this package.
• The hydrogen and decarbonized gas market package and the methane emissions regulation are currently being discussed and were due to be finalized by the end of 2023. The REMIT II Regulation came up as a new topic and is also under review. With regards to the security of gas supply, the Austrian preventive action plan was updated in the reporting year and the EU Energy Platform (AggregateEU) was still an ongoing project with participation from OMV’s side.
• The OMV Group also monitored the development and contributed to industry association positions on several ongoing negotiations in the area of implementing the Circular Economy Action Plan. Negotiations are ongoing as regards several key files, including the Packaging and Packaging Waste Regulation, the End-of-Life Vehicles Regulation, the Waste Shipment Regulation, and discussions on a global instrument to end plastic pollution.
• Sustainable finance legislation, including the EU taxonomy, was also on the agenda and the OMV Group participated in the relevant working groups at industry associations.
• In 2023, the European Chemicals Agency put forward a proposal to restrict the use of per- and polyfluoroalkyl substances (PFAS) in the EU. The OMV Group supported the detailed analyses conducted by associations in this regard.
• Among the associations’ governing boards and task forces, OMV Petrom continued to promote and advocate for a stronger and express commitment and similar initiatives to the targets of the Paris Agreement. Consequently, FIC and ARPEE have elaborated a dedicated stance on the matter. Alongside these endeavors, OMV Petrom committed its expertise and resources to extending the scope of activity of FPPG, with the aim of promoting green technologies (geothermal energy, carbon capture, transport and storage, hydrogen, photovoltaics, biofuels, and biomethane) and ensuring their successful deployment in Romania by shaping a common vision of their demand and benefits. OMV Petrom is thereby con­tributing to the understanding of the economic and environmental reasoning and implications and raising awareness of the existing bottlenecks among all concerned stakeholders.

Outlook

In 2024, the European Green Deal, the 2040 climate targets, and initiatives regarding the circular economy will be the most relevant regulatory packages for the OMV Group in the EU. The OMV Group will also follow any developments with regards to the European Carbon Management Strategy, and the upcoming European elections in 2024. Likewise, the OMV Group will closely monitor upcoming public consultations.

The war between Russia and Ukraine and current developments in the Middle East might continue to trigger unpredictable developments, which will require flexible solutions. As an important pillar for more sustainable energy, the OMV Group will continuously analyze and engage in projects that contribute to accelerating the clean energy transition and circular economy – as well as the regulatory framework of such projects. With regards to the security of gas supply, the focus will remain on the Austrian preventive action plan and the EU Energy Platform (Aggre­gateEU).