Community Grievance Mechanism
At OMV, a CGM is a key tool for preventing and managing our potential impacts on local community dependence on OMV, potential failure to respect community rights, and any associated social risks. Our management of community grievances aims to be fully aligned with the Ipieca best practice guidelines and with the Effectiveness Criteria of the UN Guiding Principles on Business and Human Rights. The Effectiveness Criteria require a grievance mechanism to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue.
The Community Grievance Management process at OMV is integrated into the OGMS system, which ensures that our grievance management is in line with the UNGP effectiveness criteria. This aims to increase the efficiency and effectiveness of our dialogue with stakeholders and communities in particular and to reduce non-compliance risks and financial consequences for the Company. It involves implementation of an adequate and accessible grievance channel for affected communities at the field site by the general manager on site, establishing and maintaining relationships with local community stakeholders, and addressing local concerns and complaints according to community grievance management systems.
Through the mechanism, OMV aims to respect the United Nations Guiding Principles on Business and Human Rights. The Community Grievance Mechanism is applicable across OMV ’s operations and its consolidated subsidiaries. OMV’s localized Community Grievance Mechanism (CGM) procedures stipulate a stringent approach to systematically receiving, documenting, addressing, and resolving grievances in all the countries where we operate. OMV subject matter experts and relevant employees were either directly involved in the development of the Community Grievance Mechanisms or consulted during the internal consultation process to provide feedback on the draft policies. Details about the available channels can be found on our corporate website and at site locations.
OMV does not seek retaliation against any community members who lodge a grievance. The availability of the grievance mechanism is communicated to all external stakeholders and is designed to be readily accessible to all community members, particularly vulnerable groups. We recognize the specific role and vulnerability of human rights defenders, so we strongly oppose any threats, intimidation, and physical, verbal, or legal attacks against human rights defenders in relation to our operations. For example, to ensure that communities affected by OMV are not only aware of our grievance processes but also trust in their effectiveness, we monitor the number and types of grievances submitted. We analyze the ratio of received grievances versus resolved grievances to gain an insight into the reliability of our process and track the number of resolved grievances as an indicator of the process’ effectiveness in providing remediation. This close monitoring of grievances at OMV is communicated to the stakeholders involved for transparency and accountability.
OMV’s Community Grievance Mechanism (CGM) provides a systematic, timely, fair, and consistent process for receiving, investigating, responding to, and resolving complaints or grievances from affected communities. Our grievance management system is primarily based on dialogue with our stakeholders and is designed to prevent retaliation. For instance, in cases of concerns or complaints related to compensation for the non-utilization of land (such as above-ground pipes, overhead lines, concrete blocks), we ensure appropriate monetary compensation for land use, or where feasible, offer a substitute piece of land. Additionally, when a site is decommissioned after project completion, we make sure it is properly restored and rehabilitated. We ensure the provision of remedy through our Community Grievance Mechanism, which is designed to increase the efficiency and effectiveness of our dialogue with stakeholders and communities. This mechanism enables remediation where needed and reduces non-compliance risks and financial consequences for OMV. Based on our commitments to indigenous peoples in the Human Rights Policy Statement, the grievance management process is structured to be transparent, credible, and equitable. It fosters trust by considering their customs, traditions, rules, and legal systems.
Our approach to managing community grievances follows the precautionary principle of obtaining local approval of OMV operations. This involves identifying and resolving the issues of concern to the local community early on. We strive to conduct our operations in a way that reduces any disruption to our neighboring communities to a minimum; however, grievances can still arise. We manage these grievances through localized CGMs. The CGMs help OMV and those potentially impacted by its operations to resolve issues in a non-judicial manner and, depending on the case, offer access to a solution. OMV ensures the availability of grievance channels not only within our direct operations but also through our business relationships. CGMs are fully operational in all operated E&P assets, at all OMV refineries (Schwechat in Austria, Burghausen in Germany), and at OMV Petrom’s Petrobrazi refinery and Brazi power plant in Romania. A Community Feedback Mechanism (CFM) is in place at SapuraOMV. Borealis has a hotline system through which grievances can be reported by both internal and external stakeholders.
At OMV, CGMs are a key tool for preventing and managing our potential impacts on affected communities and any associated social risks. Our management of community grievances aims to be fully aligned with the Ipieca best practice guidelines and with the Effectiveness Criteria of the UN Guiding Principles on Business and Human Rights. The Effectiveness Criteria require a grievance mechanism to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue. OMV has set a target to assess the CGMs at all sites against the UN Effectiveness Criteria for Non-Judicial Grievance Mechanisms by 2025. The CGM assessments review the existing processes and practices in place, and identify practical improvement measures. During these assessments, internal and external stakeholders are consulted, including via interviews, on the current performance of CGMs and design improvements that may be necessary. The main findings (e.g., key strengths, areas for improvement, and proposed actions) are included in the CGM Assessment Report. The action plans are implemented by local management and monitored by the Group Community Relations and Development function.
We have a systematic approach to tracking and monitoring issues raised through our grievance mechanisms. By maintaining a detailed record of all grievances, we can register the number of grievances by category and subcategory, calculate the number of received grievances versus resolved grievances, and ascertain the number of grievances resolved through remediation. Each grievance is thoroughly investigated and addressed in a non-judicial manner, ensuring that community members have access to appropriate remedies tailored to their specific case. Finally, we assess the effectiveness of our grievance mechanism by evaluating the resolution outcomes and the satisfaction of the stakeholders involved. This evaluation helps us continuously improve our processes and ensure that our channels remain accessible, responsive, and effective in addressing the concerns of the communities we engage with.
We aim to resolve all grievances promptly. Depending on the severity and type of issue, response times can range from within 24 hours for urgent cases to a maximum of 45 days for those requiring detailed investigations. Our grievance mechanism, integrated into the Compliance Management System, ensures the provision of remedies. This integration enhances the efficiency and effectiveness of dialogue with stakeholders and communities, enabling the implementation of the necessary remedies and reducing non-compliance risks and financial consequences for the Company. The grievance management process is designed to be transparent, credible, and equitable, fostering trust and improving our social performance in community relations. Remediation means counteracting or remedying a negative impact caused by our activities. For affected communities, this could include apologies, financial or non-financial compensation, harm prevention through injunctions or guarantees of non-repetition, punitive sanctions (such as fines), restitution, restoration, and rehabilitation. When a grievance from the community is resolved, it should be determined whether the resolution was achieved through a remedial action or by other means. OMV is committed to addressing and resolving grievances effectively to ensure the well-being and satisfaction of affected communities. The CGM channels are established and managed by OMV. The CGMs stipulate a stringent approach to systematically receiving, investigating, documenting, addressing, and resolving grievances in all the countries where we operate in a timely, fair, and consistent manner, thereby laying the foundation for our social license to operate.
Our grievance management system is based on dialogue with our stakeholders first and foremost and is designed to prevent any risk of retaliation. The CGMs help OMV and those potentially impacted by its operations to resolve issues without resorting to the legal system. However, OMV’s CGMs do not hinder or prevent affected stakeholders, including local communities, from accessing judicial solutions or other remedies for their complaints or grievances. What they do offer is a channel for resolving grievances out of court and, depending on the case, a remedy for community members.