Specific Sustainability Risks and Opportunities

Focus Area: Climate Change

Material Topic
(NaDiVeG)

Risk Description

Effect Description (Inside-Out or Outside-In)

Mitigation Measures

Energy Transition
(Environmental concerns)

Threat (Transition Risks):
Risk arising from the organization’s inability to implement and manage new technology and products to reduce carbon intensity impact, as well as the risk caused by the delayed implementation of a low-carbon business due to limited availability of critical raw materials and/or dependency on suppliers within a competitive market.

Inside-Out:
OMV’s total GHG carbon footprint (Scopes 1, 2, 3) in 2023 amounted to 134 mn t CO₂ equivalent. The global CO₂ emissions in 2023 were 37.5 Gt,¹ thus OMV contributed 0.4% of overall global emissions in 2023.

Outside-In:
Lower demand for OMV’s fossil fuel generation, limited utilization of refining capacities, loss of licenses, increased costs, significant revenue losses, as well as reputational damage

Further develop decarbonization strategy, including carbon reduction targets for the product portfolio and investment and innovation portfolio
Capital Allocation Framework to facilitate investments in projects aligned with OMV’s climate targets
Detailed market screening
Adherence to internal governance processes

For more information, see Energy Transition

Threat (Transition Risks):
As an energy- and emissions-intensive company, current and emerging regulations on carbon pricing mechanisms that target energy use and efficiency and emissions reduction pose a threat to our “business as usual” approach, e.g., the EU Emissions Trading Scheme (EU ETS).

Outside-In:
Implementing new mandatory changes in the value chain would have significant financial implications for OMV, for example either limiting the ability to shift to a more sustainable business faster or resulting in significant additional costs.

Developing new business opportunities
Carbon reduction targets for the product portfolio
Carbon reduction targets integrated into the Executive Board’s Long-Term Incentive Plan (LTIP)

For more information, see Energy Transition

Carbon Emissions Reduction
(Environmental concerns)

Threat (Transition Risk):
Risk of imbalance between certificates allocated and emissions volumes required for Company activities

Additional risk of inability to adapt to the rapid changes to emerging routine flaring requirements. With the upcoming stricter policies and regulations requiring zero routine flaring conditions, certain field development concepts based on routine flaring might not be feasible (e.g., early production facilities in remote areas) or may only be possible with higher investments and operating costs.

Outside-In:
Failing to improve energy efficiency could result in higher costs generated by the uncertainties concerning allowance demand and abatement costs, as well as energy consumption and GHG emissions.

Reputational damage could be triggered by pressure from local communities for reductions beyond the applicable legislation on flaring and emissions intensity, and/or certain field developments might not be feasible and/or only with higher investments and operating costs.

Inside-Out:
OMV’s 2023 total Scope 1 GHG emissions amounting to 10.0 mn t CO₂ equivalent increased the CO₂ concentration in the atmosphere by 0.0006 ppm.

Boosting energy efficiency and reducing internal fuel consumption by increasing renewable energy supplies, e.g., through use of the Company’s own photovoltaic (PV) plants
ISO 50001 certifications for Refining, Chemicals, and partly for Exploration & Production
Implementing tools to run plants as optimally as possible, such as introducing an Energy Trend Board, which helps operators continuously focus on energy consumption
Continual optimization of plant design and control, and implementing improvement projects to remove potential barriers to optimization
Phasing out routine flaring and venting will significantly contribute to reducing our GHG emissions
Carbon reduction targets integrated into the Executive Board’s LTIP

For more information, see Energy Efficiency and Sourcing Renewable Energy, as well as Flaring, Venting, and Fugitive Methane Emissions

Energy Transition and Carbon Emissions Reduction
(Environmental concerns)

Opportunity (Transition Opportunity):
Continue to contribute to a sustainable energy system with further development of innovative and successfully implemented projects. OMV develops viable businesses based on hydrogen, bioenergy, carbon, and geothermal models. Acceleration of technology development and access to experts and know-how will further promote OMV’s set path to energy transition.

In the context of the current strategy, there is potential for additional new business opportunities, e.g., intensifying strategic energy cooperation with various partners to generate renewable energy for OMV’s own energy consumption, or further developing new technologies and products to reduce the carbon intensity of conventional oil and gas products in the Company’s portfolio.

Inside-Out and Outside-In:
This will support growth and further development of new sustainable solutions in the chemicals business and energy supply, create long-term value for the OMV Group and its shareholders, and reduce the OMV Group’s carbon footprint. Furthermore, this would also give rise to new opportunities for local communities, creating upskilled jobs and protecting workers and their incomes (during the transition).

Continuously identifying and executing green and viable business opportunities, which offer significant potential to upscale and match OMV’s capabilities
Further increasing energy efficiency and reducing internal fuel consumption by expanding renewable energy supplies, e.g., the OMV Group’s own PV plants
Benefiting from sharing know-how by entering joint ventures and consortia that drive new energy solutions projects
Carbon reduction targets integrated into the Executive Board’s LTIP
Scaling up engagement in renewable energy sources

For more information, see Low- and Zero-Carbon Products and Energy Efficiency and Sourcing Renewable Energy

¹	Source: Global Carbon Project, Global Carbon Budget 2023.

Focus Area: Natural Resources Management

Material Topic (NaDiVeG)	Risk Description	Effect Description (Inside-Out or Outside-In)	Mitigation Measures

Circular Economy (Environmental concerns)	Opportunity: OMV identifies opportunities that would limit emissions beyond regulatory carbon emissions requirements in various countries where we operate. Utilizing carbon as a valuable feedstock for energy solutions and industrial processes, and capturing CO₂, processing it into synthetic fuels, plastics, or other chemicals are included in the opportunities identified. With Borealis, OMV has established an integrated approach to circularity by offering a broad range of circular product solutions. As the market grows and legislative standards change in favor of renewable materials, the Group aims to increase its profits and market share through these products.	Inside-Out: New climate-friendly, innovative products and services developed especially for industrial applications lead to opportunities related to employment and the supply chain. There are additional, significant positive environmental benefits from reducing CO₂ emissions and instead turning it into a feedstock for a circular economy.	Creating cross-sectoral value chains and operating a full-scale plant Collaboration with strong industry partners Proactive feedstock sourcing programs Borealis co-founded Project STOP, a program supporting cities in Indonesia to develop and implement low-cost, circular waste collection and sorting systems, thereby reducing waste leakage and increasing resource efficiency. For more information, see Circular Economy and Neutralization Measures

	Threat: Mismanaged plastic waste is a growing concern, and if not collected, sorted, and disposed of properly, it poses a threat to the environment. Additionally, the limitation in plastic waste feedstock volumes might slow down the upscaling of recycling volumes and increase the market price for recycled plastics versus fossil-based plastic raw materials.	Inside-Out: Plastic waste, if not collected, sorted, and disposed of properly, could end up leaking into the environment, causing environmental pollution, harming animals, and ultimately ending up as microplastics in drinking water and food. Environmental pollution impacts economic development and tourism, putting jobs at risk in certain industries, e.g., the fishing industry. Limited availability of plastic waste feedstock volume might impede the switch from fossil to renewable feedstock as a key enabler in the transition to a circular economy. Outside-In: Uncertainties regarding new legislation currently under development make long-term investments difficult and risky. Innovation and new technology development require a lot of time – typically more than in other industries. Planned CAPEX projects could be delayed, limiting volume scale-up and impacting the ability to achieve set circular economy targets on time. Limited availability of renewable feedstock at an affordable price may impact the Group’s ability to achieve its recycling targets. The risk of not responding on time with alternative solutions might result in losing market share, consequently having a negative impact on OMV’s reputation and image.	Launching a range of low-emission and biobased portfolios, such as Bornewables™, Borvida™, and Borcycle™ Collaboration with industry partners and public funding opportunities to jointly develop and scale up innovation, technologies, products, and digitalization. This will accelerate action and solutions, including feedstock sourcing programs for plastic waste, biobased feedstock and renewable oil, and participation in industry projects with public funding. Proactive feedstock sourcing programs for plastic waste, biobased feedstock, and renewable oil Participation in multi-party industry projects with public funding opportunities Project STOP at Borealis supporting cities in Indonesia to develop and implement low-cost, circular waste collection and sorting systems, thereby reducing waste leakage and increasing resource efficiency Circular Economy Solutions (CES) strategic program For more information, see Circular Economy

Environment (Environmental concerns)	Threat (Physical Risk): Risk of insufficient water availability to continue operations or water degradation due to failure to perform safety operations	Outside-In: The impact of periods of low or no precipitation on surface or subsurface water supplies could lead to the inability to access water for normal operations (internal consumption) and for local communities in areas of low water availability.	Improving integrity through aging water pipeline/facility replacement programs, preventive maintenance, water management plans, reduced water consumption, and water efficiency improvements Water management is a key component of our social license to operate. We engage and cooperate with local communities, and act as a responsible partner. OMV’s water management activities pursue socially equitable water use by involving local regulatory and river basin authorities. For more information, see Water

	Threat: Risk of soil and water contamination due to improper waste management, triggered either by the failure to comply with internal regulations by employees, suppliers, and contractors or by the failure of asset integrity	Inside-Out: Soil and water contamination could trigger a negative chain effect on the healthy ecosystem, like environmental pollution, with a negative impact on plants and animals, as well as on people’s well-being.	Improving existing waste management plans Training staff and having regular audits to assess progress Process safety measures and maintenance Operation Clean Sweep certifications For more information, see Waste and Spills

Focus Area: Health, Safety, and Security²

Material Topic
(NaDiVeG)

Risk Description

Effect Description (Inside-Out or Outside-In)

Mitigation Measures

Health, Safety, and Well-Being
(Environmental concerns, employee and social concerns)

Threat:
Property damage offshore or onshore (processing and treatment facilities) caused by perils outside of normal operations or normal maintenance, e.g., fires and explosions, and the subsequent disruption of production

Inside-Out and Outside-In:
Risks such as integrity failure or unsafe process safety conditions could lead to business interruption, pollution, risk to employee safety, reputational damage, and third-party fatalities, and endanger biodiversity and ecosystems.

Audits (internal and third party)
Preventive maintenance
Inspections
Rejuvenation Program (plant improvement projects)
Planned turnaround
Qualified and trained personnel

For more information, see Process Safety

Threat:
Loss of integrity of a pipeline due to pressure control systems failing or annular gas migration as a result of poor cementing of surface casings, resulting in a major accident (explosion, major fire, major oil spill)

Inside-Out and Outside-In:
A major accident could lead to a major oil spill, production stoppage, and reputational damage.

Process safety measures and maintenance
Emergency preparedness measures and maintenance
Training of staff

For more information, see Process Safety and Spills

Threat:
If customers do not get the correct hazard information on labels, there is a risk that they may use products without taking the necessary precautions and be exposed.

This could be caused by regulatory changes resulting in more severe hazard classifications and product safety concerns and/or country-/region-specific hazard labels deviating in language but also in legally required content.

Inside-Out:
Chemical substances, if not handled properly and according to their intended use, could lead to unintentional health impacts for people coming into contact with those substances.

As a signatory to the chemical industry’s Global Charter for Responsible Care®, Borealis is committed to ensuring the safety of its products along the entire value chain.
Borealis Product Stewardship follows up closely on application-related product safety requirements, so that products going into separately regulated applications such as food contact, drinking water contact, or medical applications are also fully in line with applicable legislation and standards, and serve as a basis for customer product safety.
The Borealis Product Stewardship Council evaluates the potential health, safety, and regulatory risks of all substances the Group uses and defines risk mitigation measures.
Borealis assesses all new and changed raw materials and products in terms of classification and labeling and prepares country-specific Safety Data Sheets and workplace safety cards for all classified materials.
To apply the correct label in the correct language to our PO products, the global label management SAP tool has been installed in all of Borealis’ EU and North American locations.

For more information, see Product Safety

²

One material topic under the focus area Health, Safety, and Security is Security, Emergency, and Crisis Resilience. There are, however, no risks pertaining to this material topic detailed in the risk register. OMV analyzes risks to physical and IT security as a part of its risk management processes but cannot disclose details on these as that would in itself be a risk to the Company. Risks stemming from potential physical and information security breaches are considered in other material topics, e.g., within Process Safety.

Focus Area: People

Material Topic (NaDiVeG)	Risk Description	Effect Description (Inside-Out or Outside-In)	Mitigation Measures

Diversity, Equity, and Inclusion (Employee and social concerns)	Threat: Risk of failing to reach the Group’s diversity targets and failing to foster and actively maintain an inclusive and diverse workforce	Outside-In: Failure to reach the Group’s diversity targets increases the risk of reducing employee engagement and increasing attrition, as well as the risk of losing top female talent, for example. This could lead to reputational damage, as the Company could be perceived as a poor employer with discriminatory behavior, and could promote a poor corporate culture. Inside-Out: Higher levels of psychological distress and health-related problems for employees facing discriminatory behavior; limited impact on social cohesion, validation, and acceptance of diverse members of our communities	Implementation of the DEI strategy for 2030 establishing a governance framework focusing on gender, generations, parenting/caregiving, people with disabilities, and LGBTQI+ inclusion Increasing the percentage of women in senior management positions through a range of initiatives, e.g., mentoring, training on unconscious bias New Parent Program in Austria targeting both male and female employees to encourage more equal distribution of childcare responsibilities Embedding our diversity targets in succession planning, with a preference for female candidates when identifying top talent Gender is one of the diversity criteria we apply when selecting members of the Supervisory Board and Executive Board. Including internationality in the criteria for assessing candidates in the process of executive recruiting Development of a comprehensive roadmap to support individuals with disabilities, offering practical assistance and information. Additionally, the initiative aims to enhance awareness among all OMV Group employees Continue to promote LGBTQI+ allyship and solidarity through various initiatives, e.g., Ally Week, community lunches, reinforcing the company’s commitment to inclusivity Ensuring compliance with the Code of Conduct For more information, see Diversity, Equity, and Inclusion

Employees (Employee and social concerns)	Threat: The industry is bracing itself for a serious shortfall of experienced technical professionals over the next several years due to attrition and retirement. The risk is linked to both the number of workers retiring and the number ready to replace them. Risk of not attracting and/or failing to retain, reskill, and/or upskill the highly skilled staff needed to grow and transition into a sustainable company. Lack of motivation, lack of engagement, and risk of losing talented professionals as a result of the increasing pressure to reduce costs by promoting online self-learning vs. traditional classroom learning	Outside-In: The OMV Group might face the risk of key roles not being filled, with short or negative handovers resulting in the risk that the plants may not be able to operate reliably. Individual department or Company performance may decline. Additionally, the industry might also face reduced attractiveness, leading to limited headcount and delayed transition to becoming a sustainable business. Inside-Out: The risk of not being able to uphold reliable operations, disturbances to processes and safety Furthermore, if the OMV Group fails to attract the necessary talent, OMV’s chances of transforming into a more sustainable company could be limited.	Building robust talent pipelines by cooperating with universities and offering internships, among other programs Ensuring competitive compensation and benefits by continuously monitoring market trends and international best practices Strengthening the culture of giving feedback and increasing training for leaders Engaging employees in using online resources for learning Building long-lasting employment relationships and employing local people from the countries in which OMV operates Proactively informing the public and OMV’s target groups about the benefits of our products, the sustainability challenges associated with them, and how OMV is addressing them through social media channels For more information, see Employees

	Opportunity By moving toward a sustainable business model, the OMV Group can offer career paths and job opportunities that open up a new talent pool.	Inside-Out OMV will remain a strong industry employer by offering new job opportunities in sustainable business fields, and will attract new and fresh talent who want to be part of and work on low-carbon energy solutions that support the energy transition.	Identifying and executing low-carbon and other viable business opportunities, which offer significant upscale potential and match OMV’s capabilities Scaling up engagement in renewable energy sources For more information, see Employees

Communities (Respect for human rights, employee and social concerns)	Threat: Risk of human rights abuse against communities stemming from the OMV Group’s operations. This risk is equally about failing community consultation, compensation, and reparation, as well as the negative impact on local employment, skills development, education, local livelihood, and culture. Also, negative impacts on communities’ environment, health, safety, quality of life, or access to basic needs are reflected.	Outside-In: Deterioration of OMV’s relationships with local stakeholders including local administration, leading to non-cooperation in business activities Further consequences for OMV include production delays, security issues, blockages of OMV’s activities, legal liability, loss of social license to operate, damage to OMV’s reputation. Inside-Out: Consequences for rights holders and communities include: Lack of human rights and scope for individual development, e.g., right to clean and healthy environment, access to basic needs, health, and safety Economic detriments, such as, in case of lacking compensation or environmental impacts, elevated risk to personal health and safety, as well as complicity in human rights violations (e.g., human trafficking, child labor, poor labor practices)	Training for all OMV employees, including the internal communications team, to raise general human rights awareness In-depth training for employees in specific functions to develop skills Integration of human rights in business processes, e.g., HSSE contractor management, project management, supplier prequalification and monitoring Human Rights Country Entry Check before launching operations in a country, as well as regular human rights assessments in our countries of operation, including labor rights aspects Highest-level commitment to human rights by the Boards Development and implementation (or supporting development of OMV’s business partners) of grievance mechanism Professional Human Rights and Social Impact Assessment Professional Community Relations & Development Management For more information, see Human Rights

Human Rights (Respect for human rights, employee and social concerns)	Threat: Risk of human rights abuse within OMV operations, business or joint venture partners, public security forces, as well human rights abuse by business partners delivering services or products to OMV who do not follow OMV’s Code of Conduct, the OMV Human Rights Policy Statement, or international human rights standards This is equally about the risk of poor labor practices, as well as child labor, forced labor, human trafficking, sexual assault, harassment or threats, insufficient grievance mechanism, or any other violation of human rights. Risk of failing just compensation paid to land owners in the event of expropriation of land	Inside-Out: Consequences for the human rights holder: Lack of human rights and scope for individual development Economic detriments Elevated risk to personal health and safety and, in the worst case, even injury or death Outside-In: Deterioration of OMV’s relationships with stakeholders, as well as blockages of OMV’s activities, security issues, social unrest, damage to OMV’s reputation	Human Rights Country Entry Check before launching operations in a country, as well as regular human rights assessments in our countries of operation, including labor rights aspects Highest-level commitment to human rights by the Boards Human rights aspects (incl. labor rights) included in management meetings with business and joint venture partners Development and implementation of internal grievance mechanism Training for employees (focus on high-risk countries) Integration of human rights in business processes, e.g., HSSE contractor management, project management, supplier prequalification and monitoring OMV Code of Conduct and OMV Human Rights Policy Statement Ensuring fair land valuation and compensation processes that are just, transparent, and aligned with international best practices For more information, see Human Rights

Focus Area: Ethical Business Practices

Material Topic (NaDiVeG)	Risk Description	Effect Description (Inside-Out or Outside-In)	Mitigation Measures

Economic Impacts and Business Principles (Corruption prevention, environmental concerns)	Threat: Abuse of entrusted power for individual unlawful gain/advantage, personal interest prevailing over Company interest, or other forms of unethical business conduct	Outside-In: The risk of unethical business conduct could lead to reputational damage and financial losses, as well as criminal consequences in isolated cases.	Implementing a Compliance Management System For more information, see Business Ethics and Anti-Corruption

	Threat: Non-compliance with environmental, emissions, and water laws or internal rules and regulations caused by unexpected changes or different interpretations of the legislation	Outside-In: This would lead to additional OPEX or CAPEX needed to upgrade facilities or extra taxes having to be paid.	Engagement with regulators to ensure laws are correctly interpreted and upheld Process safety measures and maintenance Training of staff Implementation of best available technologies For more information, see Environment

	Threat: The risk of the OMV Group or one or more of its affiliates not being compliant with EU Regulation 2016/679 regarding Data Protection caused, e.g., by IT security breaches, enforcement actions driven by political motivation, unintended breaches by the employees responsible for data handling procedures, and/or interpretation of the laws by regulators, leading to inability to demonstrate compliance with the requirements of the General Data Protection Regulation (GDPR).	Inside-Out and Outside-In: The risk of failing to protect general personal data could lead to exposure of personal information relating to customers, employees, and/or other stakeholders. Additionally, the risk of non-compliance with the GDPR could lead to reputational damage and financial losses.	To ensure the responsible handling of data in the interest of OMV’s customers, employees, and other stakeholders, various measures need to be taken to achieve these objectives. This requires an ongoing process whereby OMV implements different measures to handle and process personal data according to definitions in the EU Regulation. For more information, see Information and Cybersecurity as well as Human Rights

Supply Chain (Environmental concerns, employee and social concerns)	Threat: Risk of not supporting OMV’s carbon management and climate change targets by purchasing more carbon-intensive products and services than planned Risks of reputational damage related to ESG topics with regard to the supply chain (e.g., climate change, human rights violations, business ethics, poor labor practices)	Outside-In and Inside-Out: This could lead to OMV not being acknowledged as a sustainable business partner, which would have a negative impact on the business, leading to financial consequences, lack of business continuity, increasing GHG emissions, and negative consequences for human rights holders.	Sustainable procurement targets in place Increasing engagement with suppliers on carbon management topics through CDP Supply Chain Increasing transparency on carbon footprint of purchased goods and services through carbon management reporting (Scope 3 of purchased goods and services) Performing supplier audits and evaluations as part of Together for Sustainability Including sustainability performance and KPIs as part of awarding criteria Training for employees Including human rights aspects (incl. labor rights) in the prequalification phase, as well as in supplier and contractor audits ESG supplier assessments carried out with EcoVadis Including human rights and labor practices in HSSE contractor management For more information, see Supply Chain

Annual Reports

Sustainability Report

Sustainability Report 2023

Focus Area: Climate Change

Focus Area: Natural Resources Management

Focus Area: Health, Safety, and Security2

Focus Area: People

Focus Area: Ethical Business Practices

You might also be interested in

Focus Area: Health, Safety, and Security²