EU Taxonomy Reporting

The EU Taxonomy is a key instrument for the European Union to redirect capital flows toward sustainable investments and to create market transparency. It encourages increased channeling of investments by companies, investors, and policymakers to where they are most needed for sustainable development. Therefore, the EU Taxonomy Regulation will play an important role in scaling up sustainable investments and implementing the European Green Deal.

As part of the European Commission’s Action Plan on Financing Sustainable Growth, Regulation (EU) 2020/852 established an EU classification system for environmentally sustainable economic activities (EU Taxonomy) and came into force in 2020. Since then, delegated acts on all six environmental objectives have been published.

The six relevant environmental objectives of the Taxonomy Regulation are:

1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems

For OMV, the EU Taxonomy provides a means to assess which of our current and future economic activities can be classed as environmentally sustainable.

OMV’s Process for Identifying and Assessing EU Taxonomy Activities

EU Taxonomy Eligibility Assessment

An economic activity is considered to be taxonomy-eligible if it matches the description of the activity given in the EU Taxonomy. In order to identify eligible activities/products at OMV, we performed a screening of the full portfolio of OMV activities and compared our activities to the description of the economic activities/products listed in Annex I or II of the EU Taxonomy Climate Delegated Act and Annex I–IV of the EU Taxonomy Environmental Delegated Act.

The assessment of eligible activities and products at OMV is carried out by an interdisciplinary project team, using both a bottom-up and a top-down approach. A series of internal meetings and training sessions with management and experts was held in order to give OMV businesses an introduction to the new EU Taxonomy and disclosure requirements. A further series of workshops was held with all business segments and corporate entities to ensure the bottom-up identification of eligible activities, assets, processes, and related eligible CAPEX/OPEX/turnover.

OMV’s identified EU Taxonomy-eligible economic activities are mainly related to the environmental objective of climate change mitigation. An analysis of all our economic activities is performed on an annual basis and includes an update of the previous year’s assessment.

EU Taxonomy Alignment Assessment

According to the Taxonomy Regulation, every aligned activity identified in this category must make a substantial contribution to at least one of the EU’s environmental objectives, in addition to not significantly harming any of the objectives and meeting the defined minimum social safeguards.

In 2022, OMV carried out an alignment assessment based on the EU Taxonomy criteria for the first time. The assessment had the purpose of identifying whether any newly identified eligible activities fulfilled the criteria for substantial contribution to the climate mitigation objective or climate adaption environmental objective, the do no significant harm (DNSH) criteria of the other environmental objectives, and the minimum social safeguards criteria. Since 2024, the alignment assessment also includes activities pursuant to the EU Taxonomy Environmental Delegated Act. The alignment assessment is updated on an annual basis. The economic activities that OMV identified as aligning with the EU Taxonomy are all related to the environmental objective of climate change mitigation.

Responsibility for the alignment checks and evidence gathering was clearly defined in the OMV Group’s EU Taxonomy Guidance. The project/asset managers for the respective eligible project/activity were responsible for assessing compliance with the criteria for substantial contribution and the respective DNSH criteria. Support was provided by the OMV Group Sustainability team and sustainability experts from OMV Petrom and Borealis. The required physical climate risk and vulnerability assessments to comply with the DNSH climate change adaptation criteria were performed centrally by OMV Group Sustainability in conjunction with Corporate Risk Management, and with the support of an external provider in line with the OMV Group’s Enterprise-Wide Risk Management approach.

In general, the main taxonomy-eligible business activities for OMV relate to activity “3.14 Manufacture of organic basic chemicals”, activity “3.17 Manufacture of plastics in primary form,” and activity “4.13 Manufacture of biogas and biofuels for use in transport and of bioliquids.” More detailed information can be found in the respective KPI section (Turnover, CAPEX, OPEX).

The assessment of compliance with the minimum social safeguards and governance criteria was performed by OMV Group Sustainability by assessing whether the clauses in relevant OMV policies (Human Rights Policy, Code of Conduct, Code of Business Ethics, Tax Strategy) are in line with the international standards referred to in the EU Taxonomy. It was further assessed whether OMV’s human rights management system and its related processes (e.g., grievance mechanisms, community consultation) are established in line with these international standards. The detailed assessment showed no gaps between the OMV Group’s approach to human rights policies and due diligence and the social safeguard requirements laid out in the EU Taxonomy. For more details on the unadjusted gender pay gap and the Board gender diversity, please refer to S1 Own Workforce and ESRS 2 General Information respectively.

Given the competition law investigations in Moldavia and Ukraine against OMV’s subsidiaries it is important to note that OMV has implemented preventive, detective and reactive measures which are aimed at preventing and mitigating risks from non-compliance in the area of competition law within the organization. Preventive measures include developing binding rules to avoid compliance violations and to conduct trainings in this regard. Besides, advice is provided to employees on competition law topics and compliance checks are implemented in business processes. To detect misconduct, compliance violations can be reported via the Whistleblowing system and external developments are closely monitored to identify risks. Any indication of misconduct, is investigated and where appropriate, take reactive measures.

OMV’s compliance system is regularly evaluated and has been certified according to the IDW PS 980 standard by external auditors. The last certification was conducted in 2023 whereby OMV’s compliance system has been considered as best practice and suitable for identifying, controlling, and managing all significant competition law risks. For details, see G1 Business Conduct.

Definition of Financial KPIs

OMV’s values for the KPIs are derived from the figures reported in the Group’s consolidated IFRS financial statements.

The KPIs are calculated based on the sales revenues, CAPEX, and OPEX of all fully consolidated subsidiaries of the OMV Group. Subsidiaries that are not consolidated, associated companies, and joint ventures were excluded from the calculation of KPIs as per the reporting requirements of the EU Taxonomy Regulation.

The proportion of taxonomy-aligned economic activities in the sales revenues, CAPEX, and OPEX (the “alignment ratio”) has been calculated as the part of sales revenues, CAPEX, and OPEX derived from products and services associated with taxonomy-aligned economic activities (numerator) divided by the total sales revenues, CAPEX, and OPEX (denominator). The same logic applies to the calculation of the “eligibility ratio.”

The denominators of the financial KPIs were defined and can be reconciled with the IFRS Consolidated Financial Statements as follows:

• The denominator of the turnover KPI is based on OMV’s consolidated sales revenues (OMV Consolidated Financial Statements 2024, Note 7).
• The denominator of the CAPEX KPI consists of additions to intangible assets (including oil and gas properties with unproved reserves), property, plant, and equipment, and IFRS 16 right-of-use assets. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 16 – Intangible assets and Note 17 – Property, plant, and equipment). Additions from business combinations are included in the denominator, except for additions to goodwill. Decommissioning assets are not included in the denominator. Furthermore, the denominator includes additions to non-current assets held for sale. Additions included in the denominator deviate from additions recognized in the IFRS Consolidated Financial Statements because government grants are not considered in the denominator while the net presentation option is applied for the IFRS Consolidated Financial Statements.
• Total OPEX consists of R&D expenses, maintenance and repair costs, other direct expenditure related to day-to-day servicing of assets, and short-term leases. R&D expenses include the research and development expenses recognized in accordance with IAS 38 and reported in the line “Other operating expenses” in the income statement. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 11 – Other operating expenses). Maintenance and repair costs and other direct expenditure related to day-to-day servicing of assets mainly include costs for external services, personnel expenses, and material costs related to regular and unplanned maintenance, repairs, and servicing measures. The related cost items can be found in the line items “Production and operating expenses” and “Selling, distribution, and administrative expenses” in the income statement. Expenses for short-term leases have been determined and included in line with IFRS 16. Direct costs for training and other human resources improvement needs are immaterial and therefore excluded from the denominator and the numerator.

For most of the activities, sales revenues, CAPEX, and OPEX for aligned and eligible activities could be allocated directly to individual activities listed in the taxonomy based on data available in the Group entities’ ERP systems. This ensured that there was no double counting of aligned or eligible sales revenues, CAPEX, and OPEX. In the refineries, CAPEX for assets used for the joint production of organic basic chemicals and fuels has been allocated to the taxonomy-eligible activity “3.14 Manufacture of organic basic chemicals.” This has also been allocated to non-eligible activities using an allocation key reflecting the yield, size, and complexity of the different refinery plants used for this purpose. The same approach was used for repair and maintenance expenses for cost centers, which are involved in the production of organic basic chemicals and fuels.

Taxonomy-Eligible and Taxonomy-Aligned Turnover

In 2024, 22.6% (2023: 18.1%) of OMV’s total turnover was classified as taxonomy-eligible (non-aligned), while 0.2% (2023: 0.2%) of OMV’s total turnover was classified as taxonomy-aligned. In 2024, all taxonomy-eligible/aligned turnover was related to the objective of climate change mitigation.

Taxonomy-Eligible and Taxonomy-Aligned Turnover 2024

The eligible turnover arose from activities “3.17 Manufacture of plastics in primary form,” which reflects the activities of our Chemicals segment (e.g., production of polyolefins), and “3.14 Manufacture of organic basic chemicals,” also coming from the Chemicals segment (e.g., production of ethylene and propylene), as well as activity “4.29 Electricity generation from fossil gaseous fuels,” mainly from power sales from the Brazi gas-fired power plant in Romania. Furthermore, the activities “4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuels” and “5.9 Material recovery from non-hazardous waste” contributed to the taxonomy-eligible turnover. In 2024, eligible turnover from activity “4.22 Heat generation from geothermal energy” was realized, representing our geothermal activities in the Vienna basin.

Taxonomy-Aligned Turnover 2024

In EUR mn

Most of the aligned turnover in 2024 was derived from the activity “4.25 Production of heat/cool using waste heat,” which reflects the waste heat supplies from the Schwechat refinery. Another contribution arose from the activity “3.17 Manufacture of plastics in primary form,” with Ecoplast Kunststoffrecycling GmbH processing post-consumer plastics and turning them into high-quality LDPE recyclates. Further contributions to aligned turnover resulted from the activity “4.13 Manufacture of biogas and biofuels for use in transport and of bioliquids,” which covers the sales of sustainable aviation fuels, as well as from the activity “6.15 Infrastructure enabling low-carbon road transport and public transport,” which covers hydrogen and electricity sales for mobility purposes.

The split of aligned and eligible turnover between revenue from contracts with customers and revenue within the scope of IFRS 9 is included in the following table. Eligible revenue from transactions within the scope of IFRS 9 includes power sales from the gas-fired power plant in Romania.

Taxonomy-Eligible and Taxonomy-Aligned CAPEX

In 2024, 22.4% (2023: 27.7%) of OMV’s total CAPEX was classified as taxonomy-eligible (non-aligned). Of OMV’s total CAPEX, 18.7% (2023: 10.5%) was classified as taxonomy-aligned. Lower taxonomy-eligible (non-aligned) CAPEX in 2024 compared to 2023 was related to a decrease in activity “3.14 Manufacture of organic base chemicals” and “3.17 Manufacture of plastics in primary form,” while the same activities present higher aligned CAPEX in 2024 compared to 2023. A further increase in aligned CAPEX stems from activities “6.15 Infrastructure enabling low-carbon road transport and public transport,” mainly reflecting electric vehicle (EV) charging station projects at various locations, and increased CAPEX for the manufacture of hydrogen and photovoltaic projects.

In 2024, the majority of taxonomy-eligible/aligned CAPEX was related to the objective of climate change mitigation, with only a minor part of eligible CAPEX being related to the environmental objective of the transition to a circular economy.

Taxonomy-Eligible and Taxonomy-Aligned CAPEX 2024

Most of the eligible CAPEX was derived from the activities “3.17 Manufacture of plastics in primary form” and “3.14 Manufacture of organic basic chemicals,” both reflecting the activities of our Chemicals segment. Other contributors were activities in Section 6 (e.g., “6.2 freight rail transport,” “6.10 sea freight water transport,” and “6.14 Infrastructure for rail transport”) and the activity “3.10 Manufacture of hydrogen” and various activities in Section 4 Energy (e.g., production of heat/cool from geothermal energy, electricity generation using solar and photovoltaic technology, electricity generation from fossil gaseous fuels, manufacture of biogas and biofuels for use in transport and public transport, transmission and distribution of electricity, etc.). In the construction and real estate sector activities “7.2 Renovation of existing buildings” (mainly filling station buildings), “7.3 Installation, maintenance, and repair of energy efficiency equipment” (at filling stations), and “7.7 Acquisition and ownership of buildings” (e.g., acquisition of Benzinol filling stations in Slovakia) are reported.

The largest contributors to aligned CAPEX were activities “3.14 Manufacture of organic basic chemicals,” which reflects our investment in Borealis’ propane dehydrogenation unit 2 (PDH2) in Kallo, and “3.17 Manufacture of plastics in primary form” reflecting, for example, the investment into pre-treatment plant Walldürn, aiming to build and operate Europe’s largest sorting facility for chemical recycling. The sorting facility was reclassified from the circular economy objective in 2023 to climate change mitigation in 2024 and reached alignment status in 2024. EUR 116 mn has been invested in photovoltaic activities, mainly in Romania. Other important contributors to taxonomy-aligned CAPEX were the following activities: “3.10 Manufacture of hydrogen” (e.g., UpHy project), which increased compared to 2023, “4.13 Manufacture of biogas and biofuels for use in transport and of bioliquids” (e.g., production facilities for sustainable aviation fuels and glycerin to propanol activities), “6.15 Infrastructure enabling low-carbon road transport and public transport” (e.g., hydrogen filling stations, electric charging points at filling stations, acquisition of Renovatio, owner of the largest electric charging network in Romania), and “9.1 Close to market research, development, and innovation,” which stems from the investment in the ReOil^®-plant at the Schwechat refinery and R&D for chemical recycling and e-fuels. Other minor activities are “4.9 Transmission and distribution of electricity” (e.g., renewable electricity transmission line to Edvard Grieg field), “4.25 Production of heat/cool using waste heat” (e.g., district heating hub at the Schwechat refinery), and “7.6 Installation, maintenance, and repair of renewable energy technologies” (e.g., installation of PV panels and heat pumps at filling stations).

Taxonomy-Aligned CAPEX 2024

In EUR mn

Aligned and eligible CAPEX can be disaggregated into additions to the different asset classes in the table below. Additions to right-of-use assets are included in additions to property, plant, and equipment. The majority of eligible and aligned additions to property, plant, and equipment were related to the activity “3.14 Manufacture of organic basic chemicals” in 2024 and 2023.

Taxonomy-Eligible and Taxonomy-Aligned OPEX

In 2024, 49.1% (2023: 42.1%) of OMV’s total OPEX was classified as taxonomy-eligible (non-aligned). Of OMV’s total OPEX, 0.5% (2023: 0.3%) was classified as taxonomy-aligned. In 2024, all taxonomy-eligible/aligned OPEX was related to the objective of climate change mitigation.

Taxonomy-Eligible and Taxonomy-Aligned OPEX 2024

The largest contributors to eligible OPEX were the activities “3.17 Manufacture of plastics in primary form” and “3.14 Manufacture of organic basic chemicals,” both reflecting the activities of our Chemicals segment, as well as the activity “4.29 Electricity generation from fossil gaseous fuels.” Other contributors were the activity “9.1 Close to market research, development, and innovation” (e.g., R&D for ReOil®).

Taxonomy-Aligned OPEX 2024

In EUR mn

Aligned OPEX was mainly derived from the activities “3.17 Manufacture of plastics in primary form” (reflecting our Chemicals segment), “4.1 Electricity generation using solar photovoltaic technology,” “4.25 Production of heat/cool using waste heat” (district heating hub at the Schwechat refinery), and “6.15. Infrastructure for low carbon road transport” (EV charging points at our filling stations).

EU Taxonomy Data Tables

EU Taxonomy – CAPEX Reconciliation to Consolidated Financial Statements

EU Taxonomy – Turnover

EU Taxonomy – CAPEX

EU Taxonomy – OPEX

EU Taxonomy Data – Summary per Sustainability Goal

EU Taxonomy – Nuclear and fossil gas related activities

EU Taxonomy – Taxonomy-aligned economic activities (denominator) – Turnover

EU Taxonomy – Taxonomy-aligned economic activities (denominator) – CAPEX

EU Taxonomy – Taxonomy-aligned economic activities (denominator) – OPEX

EU Taxonomy – Taxonomy-aligned economic activities (numerator) – Turnover

EU Taxonomy – Taxonomy-aligned economic activities (numerator) – CAPEX

EU Taxonomy – Taxonomy-aligned economic activities (numerator) – OPEX

EU Taxonomy – Taxonomy-eligible but not taxonomy-aligned economic activities – Turnover