Local procurement and suppliers’ engagement

Local procurement creates added-value in our local communities. Spending with local suppliers accounted for 81% of total expenditures in 2019, with local expenditures in Austria amounting to 75% and in Romania to 91%.

In line with our aim to always consider the impact of our actions on the local environment, our intention is to continuously improve our local content approach. We support local suppliers to improve their capabilities, which will help them meet higher technical, HSSE, and business standards. Our ESG assessments and various audits help suppliers understand critical issues in sustainability management and performance and foster their further development in this area based on the gaps resulting from the assessment.

We also promote direct communication with suppliers to explain the sustainability performance OMV expects from suppliers. As an example, the Procurement department collaborates with the Community Relations and Development team in Yemen to conduct an initial procurement workshop for the local companies. Twenty-seven companies were invited to a two-session workshop in Aden City. The objective of the workshops was to increase the capacity of the local suppliers to participate and win tenders. We have observed in the past years that many local suppliers encounter difficulties in fulfilling OMV’s tender requirements. Therefore, the purpose of this initiative was to give the local suppliers insights about our requirements and to explain how to fulfill them. In addition, CSR requirements were included in the tender requirements for the first time. Among the topics discussed with the suppliers were tender procedures; HSSE and CSR requirements; OMV’s approach toward local suppliers; current performance; and opportunities for improvement.

OMV has also established a program of scientific and technical cooperation and partnership with Gazprom – OMV’s partner in the supply of natural gas. The companies jointly work on various research initiatives, including energy-saving technologies, and activities related to the transportation and storage of hydrogen-enriched gas.