Sustainability Report 2019 Non-Financial Report
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Sustainability Report 2019 Non-financial report OMV Aktiengesellschaft The energy for a better life. OMV SUSTAINABILITY REPORT 2019 / About This Report This report covers the operations of the OMV Group, ISAE 3000 (Revised) standard. Our disclosures focus on headquartered in Vienna, Austria, for the 2019 business the topics that have been deemed most material to our year. business and stakeholders during the materiality analysis performed in 2017 and reviewed in 2019 (see Reporting on materiality). Report Scope, Material Topics, and Boundaries More information about OMV can be found in the OMV Annual Report 2019, in the OMV Factbook, and on our website: www.omv.com OMV’s 2019 Sustainability Report, a document published annually (most recent Sustainability Report published on April 18, 2019), was prepared in accordance with the The data presented in the Report is consolidated at Group Global Reporting Initiative (GRI) Standards Core option. level. This boundary applies to all material topics, unless This Report is the combined, consolidated, non-financial clearly indicated otherwise for a particular material topic in report of the OMV Group in line with the Austrian Nach- the text of this Sustainability Report. haltigkeits- und Diversitätsverbesserungsgesetz (Sustain- ability and Diversity Improvement Act; NaDiVeG), namely All of the Health, Safety, Security, and Environment (HSSE) in accordance with Section 267a of the Austrian Commer- data, including greenhouse gas data for Scope 1 and cial Code, and guided by Oil and Gas Sector Disclosures Scope 2, is collected for activities where OMV is the oper- presented following the launch of the GRI G4 Guidelines. ator, or where OMV has a stake of more than 50% and The 2019 Report describes our management and perfor- exerts a controlling influence. This approach follows mance of the material Environmental, Social, and Gov- industry best practice and is aligned with IPIECA oil and ernance issues for our Company. gas industry guidance on voluntary sustainability reporting. This Sustainability Report has been externally assured. The independent assurance (limited assurance) has been The document also serves as our Communication on Pro- performed in accordance with the requirements of the gress for the UN Global Compact. 2 Sustainability at OMV IN THIS CHAPTER 4 CEO Statement 6 Letter of the Supervisory Board 7 OMV at a Glance 12 Sustainability Framework 22 Risks and opportunities management 28 Stakeholder map 29 Reporting on materiality 30 Environmental, Social, and Governance Ratings and Indices OMV SUSTAINABILITY REPORT 2019 / SUSTAINABILITY AT OMV CEO Statement Ladies and Gentlemen, In a difficult market environment, OMV was once again able to build on the successful financial perfor- mance of recent years in 2019. We pursued international expansion and further market diversification as well as making strategic portfolio changes by completing projects to boost gas production and expand refinery capacity. In addition to growing our long-term Company value, we also made substan- tial progress in repositioning OMV for a lower-carbon future. The Executive Board is committed to developing our business in line with the United Nations Sustainable Development Goals. I am very pleased to be able to present to you our 15th energy to a growing global population and doing so in a Sustainability Report. In it, we describe our successes in responsible and carbon-efficient manner. environmental protection and carbon efficiency, and high- light our contribution to society. I am convinced that the necessary changes can only be made if governments, the public, and businesses work together. And I am equally confident that the ayw to achieve this goal is through technological innovation. Oil and gas are essential for our lives today and will con- tinue to be valuable resources in the future. They are needed as part of the reliable, modern energy mix neces- sary to ensure sustainable economic growth, preserve prosperity, and combat poverty. “In addition to growing our long- term Company value, we also made substantial progress in repositioning OMV for a lower- carbon future.” Many well-known research institutions expect worldwide demand for energy and high-quality petrochemicals, which are used to manufacture necessary products such as phar- maceuticals, plastics, and insulation, to grow. This is also the focus of our corporate strategy. We are concentrating on further diversifying our business – both geographically, by continuing to develop Asia as a new core region, and in terms of our product portfolio, by growing our natural gas In the past year, politicians and the public have come to activities. Several acquisitions and divestments were com- expect a great deal more from oil and gas companies in pleted in 2019 with the aim of increasing the share of gas terms of adapting their strategies. Climate activists have in the Upstream portfolio to 65% by 2025. In line with our held numerous demonstrations demanding a faster and objective “produce more valuable products, burn less,” we greater reduction of our carbon footprint. The capital mar- also acquired an equity stake in the Ruwais refinery with kets are also increasingly calling on companies to report integrated petrochemical production in Abu Dhabi. ESG goals. We face the challenge of supplying affordable 4 OMV SUSTAINABILITY REPORT 2019 / SUSTAINABILITY AT OMV In terms of OMV’s sustainability achievements, I am ally friendly products, and further expand our petrochem- pleased that we were able to further improve our work- ical business. Moreover, we are working on various place safety performance in 2019. This is the result of all of options for using hydrogen – for transportation as well as the efforts we have undertaken in recent years to enhance industrial applications. In our circular economy project, our occupational health and safety. At the same time, we ReOil® pilot facility recycled 100 t of plastic waste into syn- improved process safety and stepped up our activities in thetic crude oil in 2019. In 2025, we plan to recycle 200,000 the fields of human rights protection and community t with this technology. This means we are well on the way engagement. to making synthetic crude into an economically viable product. “This year, we will again review We were able to achieve these results above all thanks to our climate protection goals and the excellent work of our approximately 20,000 employees who work tirelessly and conscientiously to ensure the set even more ambitious targets. supply of energy and raw materials. More than We will further diversify our 7,900 employees also dedicated their time and energy to protecting the environment and alleviating poverty by par- product portfolio, offer customers ticipating in volunteering activities like planting trees and more environmentally friendly providing food to people in need. products, and further expand our I am pleased that our sustainability leadership was again recognized by external rating agencies such as CDP, MSCI, petrochemical business.” ISS ESG, and Sustainalytics. They count OMV among the world’s best oil and gas companies. For the second con- We have pledged to reduce the carbon emissions of our secutive year, we were the only Austrian company to be operations, as well as the carbon footprint of our product included in the Dow Jones Sustainability Index (DJSI portfolio in order to make a significant contribution to cli- World). mate protection. As part of our Sustainability Strategy, we are continually working to limit our product portfolio’s I can assure you that we will continue to put forth every impact on the environment. In 2019, for instance, we were effort to do business responsibly and innovatively to able to reduce the carbon intensity of our energy supply ensure a secure and low-carbon future. With the energy for by 2% from 70 g CO2 to 68.6 g CO2 per unit of energy (MJ) a better life. as compared with 2018. In addition, we already achieved our 2025 carbon intensity targets ahead of schedule. This Rainer Seele year, we will again review our climate protection goals and Chief Executive Officer set even more ambitious targets. We will further diversify our product portfolio, offer customers more environment- 5 OMV SUSTAINABILITY REPORT 2019 / SUSTAINABILITY AT OMV Letter of the Supervisory Board Dear Shareholders, In 2019, OMV continued to underscore its strong commitment to being a responsible market player and even improved its already strong sustainability performance. An example for a concrete activity in this area is the In order to further strengthen our innovative capacity in cooperation agreed with VERBUND last year: OMV, this field, the New Energy olutionsS department was set together with VERBUND, Austria’s main electricity com- up to explore opportunities in carbon emission reduction pany, is building Austria’s largest ground-mounted photo- and make a positive contribution to the energy transition. voltaic plant to cover 10% of the Upstream production facilities’ own electricity demand in Lower Austria. In addi- The Supervisory Board is fully committed to OMV’s Sus- tion, our innovative plastic-to-oil technology ReOil® is on tainability Strategy and challenges the management along track to become a commercially viable, industrial-scale this transition path, specifically by setting the right incent- recycling process which will contribute to the circular eco- ives. The new Remuneration Policy that will be put to vote nomy. In 2019, 100 tons of post-consumer